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
In respect to the distance tariff question, Chairman Knapp of the
Commission says: “I am very far from believing that there should be
anything more than the most inconsiderable tendency, if any at all,
toward the adjustment of rates on a mileage basis, and I think the
prosperity of the railroads, the development of the different sections
of the country and their industries, justify the making of rates upon
what might be called a commercial basis rather than any distance basis;
but do you realize what an enormous power that is putting into the hands
of the railroads? That is the power of tearing down and building up.
That is the power which might very largely control the distribution of
industries. And I want to say in that connection that I think on the
whole it is remarkable that that power has been so slightly abused. But
it is there.... It comes back to the question which Senator Dolliver
asked, are the railroads to be left virtually free to make such rates as
they conceive to be in their interests? Undoubtedly their interest in
large measure and for the most part is the interest of the communities
they serve. Undoubtedly in large measure and for the most part they try
as honestly and as conscientiously as men can to make fair adjustments
of their charges. But suppose they do not. Is there not to be any
redress for those who suffer? That is really the question.... Suppose it
were true that a more potent exercise of government authority and the
adjustment of rates tended somewhat to increase the recognition of
distance with the result of producing a greater diffusion of industry
rather than its concentration.... I cannot believe that all those
institutions, laws, administrations which operate to the concentration
of industries and population are altogether to be commended. I doubt if
they result in happier homes, better lives, greater social comfort.”
A public board might not be willing to apply the equalization principle
without limitation under competitive conditions. It might put the sash
and door makers of Michigan and Vermont on an equality in New York City,
and yet not think it best to enable the Vermont manufacturers to send
sash to Michigan and Indiana points at the same rates the Michigan
manufacturers pay, while the Michigan factories get the same rates to
Vermont and Massachusetts points as the Vermont people; nor to arrange
matters so that a train-load of bananas from the port of New York to
Boston would pass a train-load of bananas going from the port of Boston
to New York. It takes a lot of railroads working for profit, regardless
of the waste of industrial force, to see the wisdom of such
cross-hauling. A public board would be likely to recognize not merely
the principles of profit, equalization, and development of traffic, but
also the principles of economy from a national standpoint, the
adaptation of special localities to special work, the value of
diversification of industry, etc., etc.
Public-domain text, read in full here on John Shaqi.
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