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 few examples will make clear the private railroad or “fake terminal”
method of discrimination. The first case of this kind came to light in
1903 through an investigation of the “Salt Trust” by the Interstate
Commission. Hutchinson is the centre of the salt industry in Kansas.
There are 16 mills, 9 of which are operated by the Hutchinson Salt
Company, known as the “Salt Trust,” while each of the independent mills
is operated by a different individual or company. In July, 1902, the
Hutchinson and Arkansas River Railroad was organized under the laws of
Kansas. It took possession of about 1 mile of side tracks which had been
built by the Salt Trust in connection with its works. This new
Lilliputian railroad company had no equipment of any kind. The president
of the Salt Trust and the president of the railroad were one and the
same man, Joy Morton, brother of Paul Morton, who was then at the head
of the traffic department of the Santa Fe. The Santa Fe, the Rock
Island, and the Missouri Pacific—all the railroads entering
Hutchinson—made an agreement with the switch-track Salt railroad to give
said little 1–mile Salt Trust railroad 25 percent of the rates on bulk
salt to Missouri River points, not to exceed, however, 50 cents a ton on
all the bulk salt shipped to such points. The rate to Omaha was 12 cents
per hundred and the rate to Kansas City was 10 cents. The division was
therefore equivalent to a rebate of 50 cents a ton, which is of itself
an excellent profit in the manufacture of salt. The result was that
without departing from published rates, or apparently violating any
provision of law, the trust and the railroads drove the independents out
of the bulk salt business on the Missouri River and elsewhere, and an
extension of the arrangement to all markets and all kinds of salt would
give the Trust a weapon with which it could at any time destroy the
independents.[252]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account