The failure to furnish equipment to do the business of the tributary
country promptly is one of the greater evils of corporate
administration, enabling officials to practise most injurious and
oppressive forms of discrimination, and is one that neither federal
nor State commission pays much attention to. With national ownership a
sufficiency of cars would be provided. On many roads the funds that
should have been devoted to furnishing the needed equipment, and which
the corporations contracted to provide when they accepted their
charters, have been divided as construction profits or, as in the case
of the Santa Fe, Union Pacific, and many others, diverted to the
payment of unearned dividends, while the public suffers from this
failure to comply with charter obligations; yet Mr. Dillon informs us
that the citizen commits an impertinence when he inquires why contract
obligations, which are the express consideration for the exceptional
powers granted, are not performed.
Another great advantage which would result from national ownership
would be such an adjustment of rates that traffic would take the
natural short route, and not, as under corporate management, be sent
around by the way of Robin Hood's barn, when it might reach
destination by a route but two thirds as long, and thus saving the
unnecessary tax to which the industries of the country are subjected.
That traffic can be sent by these round-about routes at the same or
less rates than is charged by the shorter ones is _prima facie_
evidence that rates are too high. If it costs a given sum to transport
a specific amount of merchandise a thousand miles, it is clear that it
will cost a greater sum to transport it fifteen hundred; and yet
traffic is daily diverted from the thousand mile route to the fifteen
hundred one, and carried at the same or lower rates than is charged by
the shorter line. It is evident, that if the long route can afford to
do the business for the rates charged, that the rates charged by the
shorter are excessive in a high degree.
Under government management, traffic would take the direct route, as
mail matter now does, and the industries of the country be relieved of
the onerous tax imposed by needless hauls. Only those somewhat
familiar with the extent of the diversions from direct routes can form
any conception of the aggregate saving that would be effected by such
change as would result from national ownership, and which may safely
be estimated as equal to two and a half per cent. of the entire cost
of the railway service, or $25,000,000 per annum.
Public-domain text, read in full here on John Shaqi.
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