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
“There has been no material change, I think, in any cotton rate in more
than ten years, except that certain reductions have been made in the
State of Texas by the commission of that State.
“Now, when I observe instances of that kind, when the ablest and most
experienced traffic officials tell me that there is no sort of reason
for 500 to 1,000 changes in interstate tariffs every twenty-four hours,
as our files show there are, you must not be surprised if I fail to
accept at par value all that is said here about the necessity of
adapting rates to commercial conditions. Undoubtedly, when you take a
considerable period of time, great influences do operate to an extent
which may justly require material modifications in freight charges, but
to my mind it is quite unsuitable that the little surface fluctuations
in trade should find expression in extended changes in the daily
tariffs. I believe that those surface currents should adjust themselves
to the tariffs, and not the tariffs to the currents. And I am saying
this, gentlemen, not as a result so much from my own observation or from
any _à priori_ view of the case as because of the statements made and
arguments submitted to me by practical railroad men of the highest
distinction.”[407]
To lay stress on the number of men required to arrange the details of
tariffs might seem to imply the belief that a very large part of
existing railroad rates will be found unreasonable and need the
attention of the Commission. It may however imply merely that there is
likely to be a very large number of complaints. The fact is that the
fixing of rates is a complex business, with a considerable percentage of
guesswork, experiment, broad judgment, and arbitrary decision. There are
some general principles of cost, distance, what the traffic can pay and
move, what shippers demand, what other carriers are charging, what rates
are necessary to create new business and fill up the cars both ways,
etc., but they are like the principles of law, you can come to any
conclusion you wish and then find a principle that will back up your
decision. Railroad men do not trouble themselves about consistency. They
do not and cannot adjust rates with reference to just relations between
places and commodities. They are looking for dividends and they make the
best rates they can with that object in view. The chief traffic officer
of one of the trunk lines, being pressed by the Commission as to his
method of making rates, said: “We make rates very much as the honey bee
makes its cells, by a sort of instinct.” When we look at his rates we
find that he is not so successful as the honey bee in respect to
symmetry and balance. Another traffic manager whose skill brings him a
salary of $50,000 a year, testifying as to the reasonableness of his
grain rates, was asked question after question as to methods of
determination, till finally he said: “To tell you the truth, gentlemen,
we get all we can.” Now it is because the railroads know that the
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