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
Mr. E. P. Vining, a former railroad manager, says that the reduction of
a rate found unreasonable by the Commission may result in new
discriminations unless other rates are reduced in fair proportion.[415]
It is also clear that in many cases the reduction of other rates by the
railroads may nullify the effect of the Commission’s order in respect to
the rate complained of. Take, for example, the railroads leading from
the wheat belt to Minneapolis and to Milwaukee. Excepting the Chicago,
Milwaukee and St. Paul the roads that lead to Minneapolis are not the
same roads that lead to Milwaukee. The Commission found that the rates
on grain to Milwaukee and Minneapolis subjected the former to undue
prejudice and disadvantage, but if the Milwaukee roads were ordered to
reduce their rates to a given level the Minneapolis roads could
neutralize the order by reducing their rates below the said level.[416]
In other words no mere right to designate a reasonable rate in place of
a rate complained of and found unreasonable can prevent unfair
discrimination between places.
Nothing short of a general rate-making power can do the work properly.
Particular rate-fixing alone means patchwork and inefficiency, easy
evasion and new discriminations in place of the old ones. On the other
hand, to give a public board general power to revise rates would if
effective be tantamount to taking possession of the railroads without
compensation, and if ineffective would amount to little in the way of
stopping discrimination. If the tariffs were made by or subject to the
revision or approval of a public commission and the rates so made were
enforced, the most vital element in the ownership of the roads would be
made public. And if the rates were disregarded or the power not
vigorously and intelligently exercised the evils we are considering
would still continue.
CHAPTER XXXIV.
CAN REGULATION SECURE THE NEEDFUL DOMINANCE OF PUBLIC INTEREST?
It is questioned whether any form of regulation can overcome
discriminations. One of the ablest members of the Interstate Commerce
Commission said to me: “No, regulation can never stop discrimination.”
And the man who is regarded by many as the leading railroad expert in
the country replied to my question in substantially the same way.
“Regulation properly so-called cannot eliminate discrimination, though
it may greatly diminish it.”
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