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 railroads continue to nullify the protective tariff upon imports,
and erect a counter protective tariff of their own in favor of foreign
goods and against domestic manufactures, aiming to supply home markets,
while on the other hand they facilitate the export of our productions by
rates much lower than the charges on the same goods for the same haul
when intended for domestic consumption. The effort seems to enable our
producers to capture foreign markets, and to give our markets,
especially the transcontinental markets, to foreign shippers. Anything
to get business, long hauls, ton-miles.
The Industrial Commission found that merchandise for export went from
Chicago to New York at 80 percent of the ordinary transportation rates,
and grain from Kansas City to Chicago took 3 cents a hundred lower rate
if billed for export than if intended for local consumption.[331] The
export rate on wheat from Chicago to New York is 15 cents, the domestic
rate 20 cents; from Kansas City to Galveston the export rate is 17 cents
against a domestic rate of 33½ cents.[332]
Another recent investigation shows that wheat from Kansas City to
Galveston was paying 27 cents if for domestic use, against 10 cents if
intended for export. The rates fluctuate, but if the domestic rate flies
low the foreign rate flies lower still.
The price of grain in Liverpool is determined by world competition; the
railroads cut rates so that our grain can be sold in Liverpool. They get
a little more than the cost of hauling and are satisfied.
When oil is selling at 9 cents a gallon here it can be bought at 3 cents
for shipment to Europe.
Railroads often give manufacturers a reduction of 33⅓ percent for
export, and manufacturers sell at 30 percent less for export. Mr. Bacon
told the Senate Committee (1905) that the export rates from all inland
points to the seaboard have been for years 25 to 33 percent below the
rates on goods for domestic use.[333]
The rate on rails from Pittsburg to Hongkong via San Francisco is only
60 cents per hundred, or less than the rate between points a few hundred
miles apart in this country.
“For the past two years the trunk lines have given the steel and iron
producers a reduction of 33⅓ percent less than the published tariff on
domestic freights, so that all iron and steel exported is carried at
one-third less than the people of this country are required to pay on
freight of the same character.”[334]
Public-domain text, read in full here on John Shaqi.
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