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 Foraker Bill, which is understood to be preferred by the railroads,
provides for thorough inspection of books, records, and transactions of
interstate roads by agents of the Commission; and if any rate is found
to be unjust, or unreasonable, or the carrier “is committing any
discriminations forbidden by law, whether as between shippers, places,
commodities, or otherwise, and whether affected by means of rates,
rebates, classifications, differentials, preferentials, private cars,
switching or terminal charges, elevator charges, failure to supply
shippers equally with cars, or in any other manner whatsoever, the
Commission, if the carrier will not desist upon due notice, may state
the case to the Attorney-General, who is to bring suit in the circuit
court in any district in which the act complained of, or part of it, was
committed, and the court shall summarily handle the case and enjoin such
rate or conduct as it finds unlawful or what is in excess of what is
reasonable and just.” Appeal shall lie to the Supreme Court. The Bill
authorizes agreements between railroads in respect to rates or charges
and their maintenance so long as the agreement is not in _unreasonable_
restraint of trade.
The provisions for inspection and combination seem to us eminently just
and useful, although the latter is strenuously opposed by many on the
ground that it authorizes and invites all the railroads of the United
States to form a huge trust and monopoly to fix rates for the whole
country. This, it is claimed by ex-Senator Chandler, “gives away all
that has been gained by the Supreme Court decisions in the cases of the
Trans-Missouri Freight Association, the Joint Traffic Association, and
the Northern Securities Company. In the Joint Traffic Association case
the nine railroad systems between New York and Chicago formed an
organization of three billions of capital, made all the rates, and
prohibited any one of the roads from lowering any rate without the
consent of the nine managers of the trust. The court destroyed this
three-billion monster. The Foraker Bill creates a fourteen-billion
monster, which will prevent any railroad anywhere in the country from
lowering any rates without the consent of the traffic managers of the
combination.”
The plan of making the Interstate Commission a mere investigating body
with no power to fix a rate, but only to state the matter to the
Attorney-General, leaving the case to be tried on his initiative
piecemeal in the circuit courts all over the country, with appeal to the
Supreme Court, seems to us much more objectionable than the permission
to form rate agreements. Under any such form of court procedure it will
be possible for the railroads to delay final decision, fixing of a just
rate, or abolition of an unjust practice for years.
Public-domain text, read in full here on John Shaqi.
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