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 entirely possible to avoid such mistakes as those attributable to
the Commission in its geographical cases, and other mistakes that may
come from lack of thorough acquaintance with practical transportation
problems, by putting on the Commission two or three traffic men of high
character and long experience in the business of making rates.
And as the business of the Commission would not be to make rates in the
first instance, but only to revise them on complaint, much as the chief
officers of railway departments do now, only with a public motive and
point of view instead of a private one, there is every reason to believe
that the work of revision could be intrusted to a well-selected
commission, with great advantage to the public. The very existence of an
effective power of revision ought to go a long way toward making the use
of the power unnecessary. And it is wholly just and practicable that
monopoly charges should be subject to the veto of a public board that is
in a position to take a broad, disinterested view of rates and other
transportation questions.
How superior the Commission’s methods are in many ways to those in use
on our railways can hardly be appreciated by one who is not familiar
with the unscientific, chaotic rate-making practices everywhere in vogue
in this country, and also with the breadth and system that marks the
work of the Commission.
An illustration may help to make the contrast clear. Take the case of
Kindel _v._ Boston & Albany, and other railroads, decided by the
Commission, December 28, 1905. The railroads were charging $2.24 per
hundred on cotton-piece goods from Boston, New York, and other eastern
points to Denver, and $1.50 on the same goods from the East clear
through to San Francisco. The local rate from Omaha or Kansas City to
Denver was $1.25, the same as the rate on first-class goods, and the
rate from the Atlantic to Denver was made by adding the said local rate
to the rate from the East to the Missouri River. Kindel complained that
the rate to Denver was unreasonable and unjust. The Commission carefully
studied the facts, took into consideration the relation between cotton
rates and first-class rates on various routes throughout the country,
put the data on a chart, a facsimile of which accompanies this
description, and came to the conclusion that “the exaction of
first-class rates on cotton-piece goods between Missouri River points
and Denver, in view of the long prevailing differentials in other parts
of the country and other existing conditions, is unjust and
unreasonable; and that the result of the excessive rate on cotton-piece
goods between the Missouri River and Denver and the application of full
locals in making up the through combination rate from New York, Boston
and other eastern points taking the same rates to Denver is to make the
through rate excessive, and that such through rate to Denver to be
reasonable should not exceed $1.50 per hundred pounds.”[412]
[Illustration]
Public-domain text, read in full here on John Shaqi.
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