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
Such results are worse even than the difference between the export rate
on wheat and on flour, which tends to discourage the milling of wheat in
this country and throw into the hands of foreign millers business that
belongs to our millers. Worse than this or than the discouragement of
home manufactures by cut rates on imports, is the discrimination in the
export and import rates in respect to different ports.
“One of the most remarkable trade movements of recent times is the
growth of the Gulf ports at the expense of New York and other Atlantic
ports. New Orleans has become the second largest grain-exporting port,
and gives promise of becoming the first. Galveston’s export and import
trade is rapidly increasing. In 1897 New York handled 77.9 percent of
the wheat, corn, and flour exports, and in 1904 her share had dwindled
to 36.9 percent. The Gulf ports have made corresponding or greater
increases. Natural advantages, including proximity to supply centres,
and the extension of port facilities for handling cargoes, have had
something to do with this increase of exports from the Gulf ports, but
the chief factor has been the differentials made by railroads connecting
with those ports. So alarming is the decrease of commerce through the
port of New York that an effort is being made to secure a legislative
investigation of the subject.”[343] The Chairman of the Committee on
Foreign Commerce for the Baltimore Chamber of Commerce says: “We are
gradually shrivelling up because of discrimination in freight rates.
Ever since December last, 1904, when the grain rates were advanced 1 to
1½ cents on export grain and 3 cents for domestic delivery, business in
this city has almost come to a standstill.... The Gulf ports are getting
it all, and while millions of bushels of corn were accustomed to arrive
here, after the December marketing from the Southwest, not one has been
received since the first of the year. Firms formerly engaged in the
exporting business in this city have pulled up stakes and have gone to
New York in search of better railroad opportunities.... The Chamber of
Commerce here is meeting daily to devise a means of surmounting the
danger which now threatens the export business of Baltimore.”
The Government is forbidden to favor one port more than another, but the
railroads are left free with a power of favoritism greater than any the
Government possesses, and they are using the power as we have seen.
Section 9, of Article 1, of the Federal Constitution says: “No
preference shall be given by any regulation of commerce in revenue to
ports of one State over those of another.”
Congress itself cannot establish any differential that would give one
port of the United States an advantage over another port. But what the
Constitution forbids Congress to do the railroads can do and have done,
by manipulating the rates on exports and imports, thereby making
business flow to whatever ports they please.
Public-domain text, read in full here on John Shaqi.
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