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 many cases the direct rate between two points, X and Y, was found
to be greater than the combination of the rate from X past Y to a
competitive point Z and the local rate back from Z to Y. For example,
goods could be shipped from the Pacific coast to Kansas City and then
back to points west of Kansas City more cheaply than they could be
sent direct from the coast to these intermediate points. This enabled
a shipper informed of the combination rates to get an advantage over
one with less information who relied on the published tariffs stating
the rates between his place of business and the points to or from
which his shipments were to be sent. The Commission took up this
matter in 1887 and the traffic managers of the roads agreed to revise
their tariffs so that the direct local rate should in no case exceed
the through rate plus the local rate back from the terminus or
competitive point. This rule resulted in many material reductions of
the rates to intermediate points; for example, the points between
Denver and the Missouri River on the lines controlled by the Southern
Pacific. See Martin _v._ Southern Pacific R.R. I. C. C. Decisions,
vol. 2, 1888, pp. 1, 4.
Footnote 35:
A higher rate on oil in barrels than in tanks held unjust, vol. 2, p.
365. Report, 1888, p. 128.
Footnote 36:
Report, 1888, p. 112.
Footnote 37:
_Ibid._, p. 114 _et seq._
Footnote 38:
_Ibid._
Footnote 39:
_Ibid._
Footnote 40:
_Ibid._
Footnote 41:
The Commission’s reports, 1889 to 1891, dealt with numerous
discriminations between localities and persons through free
transportation, commissions on the sale of tickets, combination rates,
rebates, free cartage, payment of yardage charges, excessive car
mileage on private cars, discounts for quantity, unfair
classification, distribution of cars, special tariffs, advantage or
disadvantage to particular commodities or methods of shipment, low
rates on goods for export, etc., etc.
Footnote 42:
Report, 1889, p. 10.
Footnote 43:
5 I. C. C. Decis. 69, 1891.
Footnote 44:
_Ibid._; see also 5 I. C. C. Decis. 153, 1892. Case against the
Louisville and Nashville for granting passes to members of the city
council of New Orleans.
Footnote 45:
Investigation of the Commission, 1889.
Footnote 46:
Report, Interstate Commerce Commission, 1889, p. 14.
Footnote 47:
Pages 103–107, I. C. C. Rep. 1895.
Footnote 48:
Report, 1897, p. 61.
Footnote 49:
See p. 20 above.
Footnote 50:
Heard _v._ Georgia R. R., 1 I. C. C. Decis. 428, and 3 I. C. C. Decis.
111. But the United States Supreme Court decided against the
Commission on this point May 1, 1892 (145 U. S. 263), and the B. & O.
tickets for parties of 10 or more at ⅓ less than the regular rates
were sustained.
Footnote 51:
2 I. C. C. Decis. 649, and 3 I. C. C. Decis. 465.
Footnote 52:
Public-domain text, read in full here on John Shaqi.
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