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
Corn rates now (1905) are 13 cents per hundred from Omaha, 1400 miles to
New York, and 25 cents from Boone, Iowa, 1252 miles to New York, 25
cents also from Dennison, Iowa, 1341 miles to New York, etc. Many
similar facts might be named. And such discriminations between
contiguous markets do not violate the Interstate Law. There is no
requirement that one railroad line shall not charge less for a given
distance than another railroad line charges, and even on the same line
the long and short haul clause yields to the necessity of meeting
competition.
When Dubuque wants to buy things from the South it must pay much higher
rates than Milwaukee, Madison, Chicago, Freeport, etc. Manufacturers in
Fort Dodge and Dubuque, Iowa, have to pay higher rates to the Pacific
than manufacturers in Chicago and the East.
Iowa raises corn, cattle, and hogs, and would like to have
packing-houses, but cannot because of the discrimination in favor of
Chicago and Missouri River points.[310] Iowa business men also say that
small poultry and dressed-meat concerns cannot compete with the big
packers, on account of the private-car system and the concessions
granted the car-lines, and they complain vigorously of the
discrimination against them in the rates on shoes, grain, cattle, iron,
steel, etc. The railroads have decreed that Iowa shall not be a
manufacturing State.
“THE CHAIRMAN. Why do you say that the railroads have decreed that Iowa
shall not become a manufacturing State?
“HON. A. B. CUMMINS, Governor of Iowa. I reach that conclusion simply
because all our manufacturers, when they attempt to reach beyond our own
State, meet rates that so discriminate against them that they cannot
compete with manufacturers elsewhere.”
In many cases a shipper at an intermediate point between Minneapolis and
Chicago can send his grain to Minneapolis, rebill it to Chicago, and
have it go back through his own town to destination more cheaply than he
can ship direct to destination.[311]
From Cannon Falls the rate to Chicago is 15 cents a hundred on grain.
The rate from Cannon Falls to Minneapolis is 7 cents, and from
Minneapolis to Chicago 7½ cents. So it costs ½ cent a hundred more to
ship from Cannon Falls direct to Chicago than to ship to Minneapolis and
from there back through Cannon Falls to Chicago. And if he wants to send
his grain to Louisville, Ky., it will cost him 5 cents a hundred more to
ship from Cannon Falls to Louisville, than if he sends his grain to
Minneapolis and bills it from there to Louisville.[312]
Public-domain text, read in full here on John Shaqi.
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