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
The International Harvester Company, popularly known as the Harvester
Trust, was formed in 1902 to consolidate several big concerns
manufacturing farm machinery. It organized the “Illinois Northern
Railroad Company” and turned over to it the 17 miles of switching track
in the private grounds of its Chicago works. Till the end of 1903 this
vest-pocket railroad handled the cars of the Trust for a switching
charge of $1 to $3.50 per car, the average haul being about 4 miles. For
the works at Plano, another microscopic railway company, “The Chicago,
West Pullman and Southern Railroad,” with 4 miles of track, was
organized to switch the cars of the Harvester Trust. The International
Harvester Company owns these two railroads. Its officials are the
officials of those railroads in most instances. And it absolutely
controls the operations of the roads.[254] In January, 1904, contracts
were made for the division of rates to the Missouri River. The Santa Fe,
C. B. & Q., Rock Island, Chicago and Alton, Great Western, Chicago and
North Western, Wisconsin Central, Chicago, Milwaukee and St. Paul,
etc.—practically all the railroads going west—allowed the private Trust
railroads a division of 20 percent of the through rate with the Missouri
River as a maximum, amounting to $12 on an ordinary car of 20,000 lbs.
of farm machinery going from Chicago to any point in Kansas or Nebraska
or the Far West. The Interstate Commerce Commission says: “Since the
International Harvester Company owns the Illinois Northern Railroad, a
payment to the railroad is a payment to its owner, the International
Harvester Company. When a line transporting a carload of traffic from
Chicago to the Missouri River pays the Illinois Northern Railroad $12
for switching that car from the McCormick works to its iron, it gives
the International Harvester Company a preference of at least $8.50 over
what any other shipper of that same carload would be obliged to pay....
And there is no limit in law to the extent to which this shipper may be
preferred to other shippers in this way.”[255] In a suit brought July
11, 1905, by R. B. Swift, a former officer of the McCormick branch of
the Harvester Trust, it is declared that up to September 30, 1902, the
Trust received rebates from the railroads amounting to $500,000 through
the West Pullman switch road, and over $3,000,000 through the Illinois
Northern switch road.
Public-domain text, read in full here on John Shaqi.
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