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
A method of discrimination that has spread enormously in the last year
is to pay large salaries or commissions to traffic agents located at
important points, on the understanding that these traffic agents shall
divide their salaries or commissions with favored shippers. This is much
safer than paying rebates or commissions direct to the shipper, and is
one of the most difficult forms of discrimination to overcome. In the
recent investigations in Wisconsin and other States this method has been
found in frequent use, along with underbilling and underweighing of
freight, the allowance of cartage or switching charges to favored
shippers, permission to hold cars as a means of storage for considerable
time without demurrage, midnight tariffs, direct rebates, etc., etc.
CHAPTER XXV.
TERMINAL RAILROADS.
Another method of preference without departing from published rates is
the division of rates with private terminal companies or mere switching
roads, or roads existing only on paper. A man of large experience in
railroad matters said to me not two years ago that “Since injunction
suits were instituted by the Interstate Commerce Commission in 1900,
published tariffs have been more generally followed. But big concerns
build a mile or more of railroad of their own, or incorporate their
switch tracks and sidings in a railroad company, and the division of the
through rate permits any commission that may be desired. That is the new
kind of discrimination that is spreading very rapidly. The effect is to
concentrate discrimination and the advantages it gives more and more in
the hands of the largest concerns. Formerly any big shipper could get a
rebate. Now only those big enough to build a railroad or own an elevator
get lower rates than others.” This is a little too strong. There are
many other forms of preference still in prevalent use, as we have seen,
but there is no doubt that the private railroad and the private car do
tend to concentrate discrimination, giving greater and greater
advantages to those who need them least.
They not only give the private railroads of some shippers a larger
percentage of through rates than they give to the private railroads of
other shippers, but they refuse to give the railroads of some shippers
any division of rates while dividing rates in this way with other
shippers in the same business.[251]
Public-domain text, read in full here on John Shaqi.
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