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
The Beef Trust is one of the largest shippers in the world. Its
packing-house shipments from Chicago are said to amount to some three
thousand million pounds (3,000,000,000 lbs.) a year. Its shipments
from Kansas City, Omaha, St. Joe, St. Louis, etc., are also enormous.
There is also a vast traffic in poultry, eggs, dairy products, fruit,
and vegetables, that is controlled by the Trust. Is it any wonder that
a railroad president or manager should refrain from action that might
lose him his share of this huge business? It would make a sad hole in
his receipts. Dividends would be emaciated and might vanish or appear
with a minus sign. His stock would sink in Wall Street. Angry
directors, bankers, investors, and stockholders would assail him and
attack his management. And as a result of defying the Trust he would
put himself out of office and his road perhaps in the hands of a
receiver.
Footnote 274:
C. B. Hutchins was the inventor of an improved refrigerator car. He
built five cars in 1886, and in 1890 he had the California Fruit
Transportation Company operating $200,000 worth of cars. In two years,
1890 and 1891, the profits amounted to $250,000 or more than the total
investment, and the company thought they had something better than a
gold mine. But the Beef Trust undermined them by railroad favoritism
and compelled them to sell out to the Swifts.
While the California Fruit Transportation Company was fighting for its
life with the Armour lines, it presented the Southern Pacific Railway
Company with $100,000 of its stock on condition of receiving an
exclusive contract. The contract was made, but the Armour cars
continued to go. An influence was at work stronger than the exclusive
contract and the power of the California Fruit Transportation Company.
Footnote 275:
Evidence, pp. 101, 133, 134, 146, etc. For example the manager of the
“Missouri River Despatch” operating 250 refrigerator cars testified
that the Erie paid 12½ percent commissions on the freight rates in
addition to the mileage. And the manager of the Santa Fe car-line said
the B. & O. paid them 12½ percent commissions on dairy products in
addition to the ¾ cent mileage, etc. etc.
Footnote 276:
Evidence, pp. 54–55, Armour Cars.
Footnote 277:
National Congress Railway Commissioners, above cited.
Footnote 278:
_Ibid._
Footnote 279:
I. C. C. Rep. 1904, p. 14. Aug. 1, 1904 the Armour lines made an
exclusive contract with the Pere Marquette Railroad, the fruit carrier
of Michigan. Before that the railroad iced carloads of fruit free of
charge. On the date named icing charges went into effect as follows:
$25 to Chicago, Detroit, Grand Rapids, and other Michigan points.
$30 to Cleveland, Columbus, Cincinnati, Indianapolis, and other points
in Ohio and Indiana.
$35 to Buffalo, Bloomington, and various other points in New York,
Illinois, and Wisconsin.
Public-domain text, read in full here on John Shaqi.
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