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
Even this long list does not cover the whole field. The cases on record
do not exhaust the possibilities of discriminations. The following bit
of testimony shows how easy it is to invent new ways of passing railroad
moneys into the treasuries of favored shippers,—ways that would not be
interfered with by any law short of public control of the purchase and
sale of merchandise. Mr. Gavin, the agent of the Vandalia line, was
being examined by the Interstate Commerce Commission in March, 1901. On
the question as to how business could be got by giving advantages to
shippers without cutting rates Mr. Gavin said: “There is nothing to
prevent my going down to the packing-house and paying $10 apiece for
hams if I wanted to; if I did not want to cut a rate, there is generally
a way out of the hole.”
“COMMISSIONER CLEMENTS. A good many ways; and it is your belief that a
good many of these have been practised, is it not?
“MR. GAVIN. I do not know. I would not like to say.
“COMMISSIONER PROUTY. If you bought hams enough at $10 apiece the
packing-house could give you the traffic at full rates?
“MR. GAVIN. Yes, sir.
“COMMISSIONER PROUTY. Have you ever known that to be done?
“MR. GAVIN. No, sir; but I say there are lots of ways out of the woods.”
Almost everybody agrees, in public, that railway favoritism ought to be
stopped.[346] It disturbs the fair distribution of wealth, undermines
industrial justice, business morals, and political honesty; builds
monopoly; wastes resources, and causes enormous loss to the railroads as
well as to the persons and places that are discriminated against.
Railway discrimination breaks down the equality of opportunity that is
one of the fundamental rights recognized in every country. It tends to
separate success from merit and industry, and make it depend on fraud
and favoritism. Judge Grosscup touched a vital point when he said to the
Boston Economic Club, March 11, 1905: “Any difference in rates permitted
by law, even though based on the bulk of the tonnage handled, is a
direct and effective blow, by the nation itself, at the principle that
every man, whatever his present business size, shall be given equal
conditions and equal opportunity.... In this country there is no such
thing as size to a business man. The man of little size expects to get
big. He has a right to get big. He has a right to have the atmosphere of
equal opportunity and equal conditions in which to grow, and excepting,
of course, some unit, such as a ton or a car, the charge ought to be the
same for the little as for the big shipper.”[347]
Public-domain text, read in full here on John Shaqi.
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