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
“No, of course it cannot,” he replied.
Such questions never fail to bring an admission that pooling cannot be
relied on for the whole of the work to be done in this field. In fact
only one of the six motives for discrimination[387] arises from the
competitive conditions that pooling is expected to remove. Combined
roads will make discriminative rates to create new business, to solidify
traffic, to favor places or concerns in which they are interested, to
favor persons of large influence who may aid or injure railroad
interests, or to injure persons or places that have incurred their
displeasure. All but 2 of the 64 methods of discrimination above
enumerated would find a use under a pooling system or even if
combination were complete and competition entirely done away with, as
the reader may see for himself by running over the list on pages
229–232.
Even competitive discrimination is not eliminated by pooling, for the
railroads will not stick to the pool. A railroad president has been
known to go from the room in which he had agreed with other railroad
potentates to pool their business and maintain rates, and hunt up at
once a big shipper, offer him a cut rate, and get a contract taking the
whole of his business away from the other roads.
Albert Fink, the greatest traffic association organizer we have had,
complained bitterly that rates agreed upon in a convention were
frequently cut before the convention had dispersed.[388] President
Tuttle of the Boston and Maine says: “I never knew a pooling arrangement
that prevented competition or was wholly satisfactory. There was never
what was considered an equitable distribution of traffic to anybody,
because the strong lines that could control and handle 50 percent of the
traffic were always struggling against parting with any of that 50
percent, while the weak, 10 percent road was always trying to get 15
percent.”
The man who drew the first pooling contract made in this country and has
drawn many since says that pooling will not stop even competitive
discrimination, because the roads will slash rates on the sly to get
business. In other words pooling does not eliminate the struggle for
traffic. Company A has 25 percent of the pool money between certain
points. It cuts rates on the quiet and gets 30 or 35 percent of the
business, and then says: “Gentlemen, I’m carrying 35 percent of the
traffic and I want more of the pool money.” The gentleman just mentioned
told me that this sort of thing had been done in every case of pooling
with which he was acquainted.
Sometimes the break in the rates is known to the Association but
assented to or tolerated because it is clear that a break is bound to
occur anyway, and may be enlarged rather than diminished by resistance.
Some years ago when Chauncey Depew was president of the New York Central
system, he said: “Large shippers arbitrarily transfer the whole of their
business from one line to another. That leaves a weak line denuded of
its business.
Public-domain text, read in full here on John Shaqi.
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