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 contend that a relative order would be sufficient. The
Commission could say what percentage of the Omaha rate the advance for
Wichita should be, and in the Kansas case the rate on oil could be
determined in reference to the rates on other commodities. It is true
that a relative order could be made, but it might be more embarrassing
to the railroads to have a group of rates tied up by each decision so
that they could not vary any of them without changing the rest, than it
would be to have one rate definitely fixed; the subtraction from
elasticity might be greater, and the difficulty of determining the true
relations between various rates might be far more serious than the
fixing of a reasonable rate in the particular case. It would be possible
to give the Commission the option to make a relative order or to
definitely fix a reasonable rate providing that it should carefully
consider the preference of the carrier as to the form of order, the
reasons for that preference, and the guarantee the carrier may be
willing to give as to _bona fide_ compliance with the order, and then
make up its judgment in the light of the circumstances in such a way as
to accomplish the purpose in view with the greatest certainty and the
least friction or interference with the freedom of railroad management.
But the railroads object to the fixing of rates in any manner by a
public board,[406] declaring that such a board could not be in
sufficiently close touch with traffic conditions all over the country to
adapt their rulings to the needs of business, that tariffs would lose
the elasticity requisite to keep them in harmony with changing economic
conditions. A rate that is reasonable to-day may be unreasonable
to-morrow. It is said that it keeps several hundred men, 500 to 700
skilled traffic men, working all the time on the adjustment of rates,
and that it is beyond the power of half a dozen men to pass on the rate
question of a country like this; that Congress cannot delegate to a
commission the power to fix rates; that it would destroy the initiative
of railroads and hurt their power of borrowing money for improvements,
injure investors, and throw the whole railroad world out of gear; that
the centralization of power would be dangerous, the disturbance of
business and interference with development disastrous, and the practical
confiscation of railroad properties and values unjust; that a flood of
litigation would follow, and that discrimination would not be removed,
for agents hustling for business would cut under commission-made rates
as quickly as they cut railroad-made rates.
Public-domain text, read in full here on John Shaqi.
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