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
On some roads Streychmans says that rebates were paid the Armours on
ice. The Chicago, Milwaukee and St. Paul, for example, billed the ice at
$2.50, but in paying the railroad for the ice the Armours put in a
rebate claim for $1 a ton, reducing the net cost to $1.50. On the Texas
and Pacific, the company furnishing the ice remitted $1 per ton making
the net price $2.50. Ice cold rebates were also paid at Buffalo.
The Armours in their turn made “allowances” to favored shippers.
Streychmans had to make up “allowance statements” “showing the number of
cars shipped by the shippers and giving him a rate of 60 percent of the
tariff rate.” A “rebate of $15 to $25 a car” was paid back. The last
statement Mr. Streychmans put in typewriting before leaving the Armour
service in California was for a rebate of 45 percent to Alden Anderson,
Lieutenant-Governor of California. The witness saw on the office file
statements of rebates to the Southern California Fruit Exchange of $10 a
car on 1904 shipments of oranges, etc. A number of shippers in
California got rebates amounting to 45 to 50 percent of the icing
charges. They paid the actual cost of icing plus a bonus of $10 to
Chicago, $15 to New York, and $20 to Boston. The cost and bonus together
were ordinarily less than half the tariff charges. For instance, the
Armour ice tariff to Boston from Southern California was $120, the cost
$38, and the bonus $20,—$58 total, or a little less than half the
tariff. The full tariff rates were collected and the difference paid
back. Shippers not in on the secret-rebate arrangement paid the full
rates and got no discount.
From Portland, Ore., to Chicago the Armour icing charge was $45, because
the Northern Pacific cars are there to compete; but further south, at
Medford, Ore., where there is only the Southern Pacific, in league with
the Armours, the icing charge to Chicago is $75.
When possible the car-line runs the cars without ice, sometimes for long
distances, but charges the shippers for icing just as if it had been
done.
Some of the railroads pay a bonus for the Armour business, the St. Paul,
the Northwestern, and the Grand Trunk, for example; in other words, the
Armour lines not only charge extortionate rates for icing and get a
mileage on their cars loaded or empty, but in some cases sell their
tonnage to the railroads. In California, however, the witness believes
there is a traffic commission to settle questions of the division of
traffic between the Santa Fe cars and the Armour cars on the Southern
Pacific.
Mr. Streychmans as a confidential clerk was supplied with a secret code
for use in his correspondence. The inside title-page says:
“Transportation Department, General Offices, 205 La Salle Street,
Chicago, Ill. Cipher code No. 100; for exclusive use between themselves
and H. Streychmans. July 1, 1902. Armour Printing Works, Chicago.”[291]
Some of the cipher words and their meanings are as follows:—
_Launching_—Can make rebate.
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