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
Speaking of this experience Governor Larrabee of Iowa said in 1893:
“Every year seemed to add to the grievances of the public. Success
greatly emboldened the railway companies. Discriminations seemed to
increase in number and gravity. At many points in the western part of
the State freight rates to Chicago were from 50 to 75 percent higher
than from points in Kansas and Nebraska. A car of wheat hauled only
across the State paid twice as much freight as another hauled twice the
distance from its point of origin to Chicago. Minnesota flour was hauled
a distance of 300 miles for a less rate than Iowa flour was carried 100
miles. Certain merchants received from the railroad companies a discount
of 50 percent on all their freights, and thus were enabled to undersell
all their competitors. The rate on coal in carload lots from Cleveland,
Lucas County, to Glenwood was $1.80 per ton, and from the same point to
Council Bluffs only $1.25, although the latter was about thirty miles
longer haul. Innumerable cases of this kind could be cited. There was
not a town or interest in the State that did not feel the influence of
these unjust practices.”
_The Hepburn Investigation._
This most famous and enlightening investigation of the early period was
that of the Hepburn Committee of New York in 1879. The committee found
that many shippers were paying two or three times, and in some cases
five times, the rates paid by their rivals.
William H. Vanderbilt told the committee that, as a rule, all large
shippers who asked for special rates got them. Among the men his road
had helped to build up by special rates was A. T. Stewart, the great
dry-goods merchant of New York. He had a rate of 13 cents from his
factories over the New York Central to New York, while small concerns
paid 20 to 40 cents for this same service. A big dealer in cotton cloth
had a 20 cent rate, while others paid the regular 35 and 40 cent rate.
Five grocery firms in Syracuse had a flat 9 cent rate instead of the
published tariff of 37, 29, 25, and 18 cents, according to the class of
goods. Four Rochester firms had a special rate of 13 cents against the
regular tariff of 40, 30, 25, and 20 cents. Five firms at Binghamton and
five at Elmira had rates from ⁵⁄₉ to ⅓ of the tariff. Three Utica
dry-goods merchants had a rate of 9 cents and another had a rate of 10
cents, while the regular rates which the outside public paid were 33,
26, and 22 cents, according to class. Soap shipped by B. of New York to
C. of Syracuse cost 12 cents freight per box if the freight was paid by
the shipper in New York, but only 8 cents a box if the freight was paid
by the consignee in Syracuse.
Public-domain text, read in full here on John Shaqi.
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