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 methods by which the Standard controls New England are still in full
swing. The report of the Industrial Commission tells how the Standard
Oil railroads keep the independent refineries at Cleveland out of New
England through high rates on oil by rail, while the Standard ships by
water, and by making oil second class unless the shipper has a private
siding or tank opposite the rails of the New Haven and Hartford
Railroad, but fifth class if the shipper has such siding or tank, _i.
e._, if the shipper is the Standard Oil Co.[295] “The freight rate from
Cleveland to Boston,” says the report, “was formerly 22 cents per
hundred pounds alike on iron articles, grain, and petroleum. But since
the Interstate Commerce Act the rates have been changed, so that the
rate on grain is 15 cents per hundred pounds, on iron 20 cents, and on
petroleum 24 cents. Again, on almost every commodity through rates are
made from Cleveland and other western points to points reached by the
New York, New Haven and Hartford Railroad. On petroleum there are no
through rates, but a local rate is added to the Boston rate. Moreover
the New York, New Haven and Hartford prescribes that petroleum and its
products shall be in the second class of freight unless the person to
whom it is shipped has a private siding or tank opposite the rails, in
which case it is fifth class, the rate for fifth class being probably
one-half that for second class. These arrangements are explainable by
the fact that the Standard Oil Company ships oil from its seaboard
refineries to Boston largely by tank steamers, and distributes it from
there for a comparatively short distance at the local rates.”[296]
In the West the Standard has persuaded the railroads to lift the rates
on oil so high as to make competition difficult. The rate from
Pennsylvania points to Chicago was raised from 17½ cents to 19½ cents,
and the rate from Chicago to St. Paul went up from 10 cents to 20
cents.[297] The Standard pumps oil to Chicago by pipe, and the higher
the rates by rail the more impossible it is for the independents to
compete. Of course it is against the direct interests of the railway
stockholders to have rates so high as to check the traffic in oil by
rail, but the Standard does not care about that, and it is a small
matter even to the railroad managers compared to incurring the
displeasure of Standard Oil, which has sufficient control in the railway
world to cause any disobedient railroad most serious loss and even make
a railroad war upon it.
Before the Standard found other methods of controlling transportation
and milking the public it used to receive half a million dollars a month
in rebates. But some railroad men who are in a position to know say that
since 1900 the Standard Oil has not asked for rebates, the reason being
that the tariffs are made in such a way as to give the Trust all the
advantage it requires.[298]
Public-domain text, read in full here on John Shaqi.
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