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
It is clear, therefore, that scalping is not a lost art. The regular
one-price ticket agents say that the cut-rate business is still in
flourishing condition. It may be that railway offices no longer act with
scalpers to evade the law, but when a scalper says he will give you a
first-class ticket (worth $18 at the depot) for $15 any time you want
it, it looks as though he had some pretty certain source of supply. One
scalper here, I am told, is the brother of the advertising manager of a
monthly magazine. Railroads advertising in the magazines pay in tickets
and the manager turns these tickets over to the scalper. The same thing
is done in New York and Chicago, and probably in other places. Scalpers
also get unused portions of excursion and other tickets. And perhaps
some of the railways are still in direct collusion with scalpers. Every
freight pool or agreement to prevent cutting freight rates that was ever
made was broken by some railroad secretly cutting prices, and it may be
that an agreement to maintain fares is not safe against secret cutting
either.
One of the most peculiar things about scalping is that, unlike other
forms of discrimination, its benefits go to the poor man instead of the
rich man. It is the only kind of discrimination that gives the poor man
any comfort or tends to diffuse wealth instead of concentrating it. In
this one case the rich help to pay for the poor man’s transportation; in
all other cases the poor man and the man of moderate wealth help to pay
for the service the rich man gets. Perhaps this partly explains why it
is that many railroads have taken a more decided stand against this
abuse than against any other in the long list of evils that afflict
transportation in this country.
CHAPTER IV.
FREIGHT DISCRIMINATION.
We come now to a kind of discrimination that enables a railway manager
to determine which of the merchants, manufacturers, mine owners, etc.,
on his line shall prosper and which shall not; what cities and towns
shall grow, what States shall thrive, what industries shall be
developed.
The purpose of discrimination may be (1) to keep business from going to
a competing line; (2) to increase revenue by creating new business for
which, if necessary, rates may be dropped very low, as anything above
the cost of handling on new business will add to income; (3) to simplify
and solidify traffic; (4) to favor persons who, through political
influence or other power may aid or injure the road, or who, through
friendship, marriage, business or civic relation, or otherwise, have a
“pull” with the management; (5) to advance the interests or enhance the
value of a business, or property, or place, in which the railway or its
officers or their friends are interested; or (6) to kill or injure a
place or person or business that has incurred the enmity of the railways
or their allies.
Public-domain text, read in full here on John Shaqi.
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