The heart of the railroad problem: The history of railway discrimination in the United States, the chief efforts at control and the remedies proposed, with hints from other countriesParsons, Frank
History
The heart of the railroad problem: The history of railway discrimination in the United States, the chief efforts at control and the remedies proposed, with hints from other countries
Parsons, Frank
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
An exasperating form of discrimination near of kin to this refusal of
cars is the refusal directly or indirectly to take shipments for certain
persons or to certain points. The Hope Cotton Oil Company operates a
mill at Hope, Ark., for the manufacture of cotton-seed oil. It desired
to buy seed at various points on the Texas and Pacific Railroad. This
seed could only reach the mill by passing over the Texas and Pacific to
Texarkana and from there to Hope by the St. Louis, Iron Mountain and
Southern Railroad. The published rate from the points in question to
Texarkana was 12½ cents per hundred, and 5 cents from Texarkana to Hope.
After receiving this information the agent of the Hope Company bought 49
carloads of seed on the line of the Texas and Pacific, intending to send
them to Texarkana on the 12½ cent rate and from there to Hope on the 5
cent rate. Seventeen cars were sent in this way. But when the General
Freight Agent of the Texas and Pacific ascertained what was being done,
he refused to allow the shipments to continue, insisting that the seed
must take the broad joint rate of 67 cents applicable to class A in
which cotton seed belonged. Under his orders the station agents on the
Texas and Pacific refused to bill the cars in any way to Texarkana on
the published local rate of 12½ cents. The 67 cent rate amounted to
$13.40 a ton on seed which only cost $14 a ton, and to insist on such a
rate the Commission says “was for all practical purposes to decline to
receive the cotton seed for shipment on any terms.”[248] The secret of
the situation was that the Texas and Pacific did not want the cotton
seed to go off of its line. If shipped to Texarkana mills or other mills
on its line the products would find their way to market over that road,
while if manufactured at Hope this would not probably be the case.
Denying a private switch to one party while providing such facility for
a competing dealer[249] may amount to a preference similar to that
resulting from free cartage.
A discrimination in the place of delivery of freight may work serious
injury to a shipper. For example, D. W. Miner, a dealer in beef and pork
products at Providence, complains to the Interstate Commerce Commission,
July, 1905, that the New Haven road refuses to deliver his merchandise
at the Canal Street yard where his place of business is located,
carrying his freight half a mile beyond, while delivery is made to his
competitors at the Canal Street yard.
Sometimes railroads discriminate even on long hauls in interstate
traffic by taking advantage of the fact that the Interstate Commerce Act
does not apply to State traffic. They take the car across the State line
on a “mem.-bill,” then draw a new bill of lading marked “State
Business,” and then pay the rebate without fear of disagreeable
consequences.
Public-domain text, read in full here on John Shaqi.
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