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
In addition to the passengers who travel free on passes, there are many
who have free transportation in other forms. One method of favoritism is
the payment of rebates, which are in use in the passenger departments as
well as in the freight departments of our railroads. Passenger rebates
are repayments of a part or the whole of the amounts paid by favored
parties for tickets or mileage. For example, large concerns that employ
travelling men buy ordinary passenger mileage books, and when the
mileage is used the cover of the book is returned to the railroad and a
refund is made.[17] In the investigation of the Wisconsin railroads,
instituted by Governor La Follette in 1903, it was found that every
railroad of importance in the State had been paying passenger rebates in
large amounts every year for the whole six years that were covered by
the search. From 1897 to the end of 1903 the Chicago, Milwaukee and St.
Paul refunded $170,968 in passenger rebates, the Chicago and
Northwestern refunded $614,361; adding the Chicago, St. Paul,
Minneapolis and Omaha, the Wisconsin Central, and the “Soo Line,” the
total passenger rebates paid by the five roads named in the said time
was over $972,000.
In the case of some favored shippers in Wisconsin it was found that the
railroads secretly refunded the entire original cost of the mileage
books bought by the said shippers for themselves or their agents, or $60
per book. So that these favored houses “were able to send out their
entire force of travelling men without paying one cent of railroad fare,
while their competitors paid full fares.”
One of these Wisconsin concerns, the Northern Grain Company, received
from the Northwestern Railroad alone $151,447 rebates in five years, or
over $30,000 a year, partly as refunds on the passenger mileage books of
their travelling men and partly as cash rebates on their business. The
president of the Northern Grain Company is O. W. Mosher, who was a State
senator in 1901 and 1903 and fought the railroad reforms proposed by
Governor La Follette. He vigorously defended “individual liberty” and
the right of the railroads to “control their own property,” and it is
easy to understand his earnest opposition to railroad regulation since
it has come out that “individual liberty” and railroad _laissez faire_
meant $30,000 a year to his company.
_The Deadhead Passenger Car._
Along with the less-than-carload lots of deadheads travelling on trip
passes or annual passes, or transportation with a rebate attachment,
there are carload lots going deadhead in private passenger cars.
Public-domain text, read in full here on John Shaqi.
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