First would be the stability and practical uniformity of rates now
impossible, as they are subject to change by hundreds of officials,
and are often made for the purpose of enriching such officials. State
and federal laws have had the effect of making discriminations less
public and less numerous, but it is doubtful if they are less
effective in enriching officials and their partners, although it may
be necessary to be more careful in covering tracks. That they are
continued is within the cognizance of every well-informed shipper, and
are made clear by such cases as that of Counselman and Peasley, now
before the United States Supreme Court. Counselman and Peasley--one a
large shipper and the other a prominent railway official--refused to
testify before a United States grand jury upon the plea that to do so
might criminate themselves; the federal law making it a criminal
offence to make or benefit by discriminating rates. Counselman had
been given rates on corn, some five cents less per hundred pounds than
others, from Kansas and Nebraska points to Chicago.
The outrageous character of this discrimination will appear when we
reflect that five cents per one hundred pounds is an enormous profit
on corn that the grower has sold at from eighteen to twenty-two cents
per one hundred pounds, and that such a margin would tend to drive
every one but the railway officials and their secret partners out of
the trade, as has practically been the case on many western roads.
Doubtless such rates are sometimes made in order to take the commodity
over a certain line, and there is no divide with the officials; but
the effect upon the competitors of the favored shipper and the public
is none the less injurious, and such practices would not obtain under
national ownership, when railway users would be treated with honesty
and impartiality, which the experience of half a century shows to be
impossible with corporate ownership.
Referring to the rate question in their last report, the Interstate
Commerce Commission says: "If we go no farther than the railroad
managers themselves for information, we shall not find that it is
claimed that railroad service, as a whole, is conducted without unjust
discriminations."
"If rates are secretly cut, or if rebates are given to large shippers,
the fact of itself shows the rates which are charged to the general
public are unreasonable, for they are necessarily made higher than
they ought to be in order to provide for the cut or to pay the
rebate."
"If the carrier habitually carries a great number of people free, its
regular rates are made the higher to cover the cost; if heavy
commissions are paid for obtaining business, the rates are made the
higher that the net revenues may not suffer in consequence; if
scalpers are directly or indirectly supported by the railroad
companies, the general public refunds to the companies what the
support costs."
Public-domain text, read in full here on John Shaqi.
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