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
What he meant was that a control strong enough to eliminate
discrimination, would not be regulation, but ownership or
quasi-ownership. So long as men representing private interests continue
to possess control over rates and services they will continue to
discriminate, for private interests demand discrimination. And if
control of rates or services or both is placed in a public body, public
ownership or quasi-public ownership is thereby established, for control
is the essence of ownership. It makes little difference who has the
title to a farm if I have the control of it and can determine the way in
which the work shall be done and the price at which the crops shall be
sold. The “owner” in such case is little more than a mortgagee—he has
the interest on his capital, whatever I choose to allow him, and that’s
all. It would seem that if the people wish to control the railroads,
they should buy them at a fair value, and not establish complete or
quasi-ownership without compensation, under the name of regulation and
control.
This is an interesting line of thought, and philosophically has
considerable force in respect to control extending beyond what the
public may have a right to claim as a partner by reason of the bestowal
of franchises and other benefits. It is also important to note that only
substitution of managers owing allegiance to the public interest in
place of managers representing private interests can eliminate the
motives to discrimination, and remove the antagonism of interest between
the owners and the public, which is the root of all railroad evils.
This is a practical world, however, and the practical facts are that the
difficulties in the way of public ownership of railways in this country
at present are very great, and that much good may be accomplished by
judicious regulation. The long and short haul clause may be made
effective; the railroads can be prevented from paying shippers more for
cars or switches than they would pay each other; private car-lines,
express companies, and water carriers can be brought within the Commerce
Act; the Commission can be given power to name a reasonable rate or
practice in place of one found unjust, and either put it in force at
once, subject to revision in a special court devoted to transportation
cases, and acting promptly on all appeals, or themselves take the facts
and their conclusions at once to the court and get a ruling before
putting the order into effect; and railroad managers can be prohibited
from having any interest in any concern that can be aided by
transportation favors over their roads, as is already the case on James
J. Hill’s Great Northern, except with respect to Mr. Hill himself.
Public-domain text, read in full here on John Shaqi.
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