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 whole history of the traffic associations shows that discriminations
can be guarded against by pooling only to a very limited extent.[390]
The legalization of pooling would enable railroads that wished to insist
on the maintenance of rates to bring suit against roads disregarding the
agreement. This would make it harder to get all the railroads into a
pool, for part of the inducement is the impunity with which the
agreement may be shuffled off, while on the other hand the degree of
respect manifested by the railroads for the law does not justify much
hope that it would be effective in holding them to any pooling contract
if they thought they could make more by breaking it than by keeping it.
The fact is that the railroads understand each other now about as well
as if pooling were legalized. They constantly make rate agreements and
have no hesitation in securing whatever degree of unity they desire with
or without law. Pools at best do not apply to local traffic, but only to
business between competing points, so that all discriminations in local
traffic are left absolutely untouched. And as to competitive points,
pooling is far less effective than consolidation, and consolidation has
shown no tendency to do away with any more than one of the six classes
of discrimination, while it emphasizes and extends the discriminations
in favor of the great industrial interests whose ownership is
interlocked with that of the big railroad systems, so that the advance
of consolidation means the extension of the influence of the giant
industrials in whose favor the most grievous discriminations are
granted.
Pooling and combination are good in many ways,[391] and ought to be
legalized;[392] but they cannot be relied on to abolish
discrimination,—they leave the worst forms untouched, intensify some of
them, and diminish only one of the six classes of preference. Shippers
have a strong prejudice against pooling, and the railroads do not care
so much about it as they used to, for consolidation and mutual
understanding have enabled them to accomplish in part the purposes they
had in view in the traffic agreements of earlier years.[393]
_Wrestling with the Long-Haul Abuse._
Public-domain text, read in full here on John Shaqi.
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