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 railways are public highways, they exercise governmental powers and
fulfil governmental functions, and it is an atrocious misuse of social
power to employ these so as to give special advantages to a few members
of the community. The Interstate Commission says: “The railroad is
justly regarded as a public facility which every person may enjoy at
pleasure, a common right to which all are admitted and from which none
can be excluded. The essence of this right is equality, and its
enjoyment can be complete only when it is secured on like conditions by
all who desire its benefits. The railroad exists by virtue of authority
proceeding from the State, and thus differs in its essential nature from
every form of private enterprise. The carrier is invested with
extraordinary powers which are delegated by the sovereign, and thereby
performs a governmental function. The favoritism, partiality, and
exactions which the law was designed to prevent resulted in large
measure from a general misapprehension of the nature of transportation,
and its vital relation to commercial and industrial progress. So far
from being a private possession, it differs from every species of
property, and is in no sense a commodity. Its office is peculiar, for it
is essentially public. The railroad, therefore, can rightfully do
nothing which the State itself might not do if it performed this public
service through its own agents, instead of delegating it to corporations
which it has created. The large shipper is entitled to no advantage over
his smaller rival in respect to rates or accommodations, for the
compensation exacted in every case should be measured by the same
standard. To allow any exceptions to this fundamental rule is to subvert
the principle upon which free institutions depend, and substitute
arbitrary caprice for equality of right.”[348]
The losses to the railroads cannot be estimated accurately, but we have
some interesting hints. Franklin B. Gowan said in 1888: “The gross
receipts of the railroads of this country, in round numbers, are eight
hundred millions of dollars per annum, and I verily and honestly believe
that one hundred millions of dollars annually are taken out of the
pockets of the people of this country by unjust railway discrimination,
and turned over to this privileged class—and this is equal to a tax of
two dollars per head paid by the people for the sake of building up the
new aristocracy of wealth that in this free country arrogate to
themselves the position of the nobility of the older countries. It is
utterly impossible that there can be any success attending a monopoly of
natural products without the aid of the unjust discrimination of
railroad companies. And only when such discrimination ceases will all
people be placed on terms of equality.”
Public-domain text, read in full here on John Shaqi.
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