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
General Manager Van Etten of the B. & A. says discrimination is the
American principle. You find it everywhere. You buy goods at wholesale
much cheaper than you can get them at retail. It is the same with gas
and water and electric light.
A number of railroad men take the view that “railroad service” is a
commodity to be sold like any other sort of private property at
whatever price the owner can get or chooses to take.
The trouble with these statements (aside from the quantity plea which
may be allowed within reasonable limits) is that the differences
between railway service and ordinary mercantile service are not taken
into account.
If people found they were unfairly treated by the bakeries or
groceries or shoe stores of a town, it would be easy to establish a
new store co-operatively or otherwise, that would be fair and
reasonable, and that possibility keeps the store fair as a rule even
where there is no direct competition. But when the railways do not
deal justly with the people of a town they cannot build a new road to
Chicago or San Francisco. It is the monopoly element, together with
the vital and all-pervading influence of transportation, that
differentiates the railroad service from any ordinary sort of
commerce. If bread stores or shoe stores combined, and, by means of
control of raw material or transportation facilities, erected a
practical monopoly or group of monopolies, and favoritism were shown
in the sale of goods by means of which those who were favored by the
monopolists got all the chromos and low rates, and grew prosperous and
fat, while those who were not favored went chromoless and grew thin in
body and emaciated in purse, it is not improbable that the President
would write a message on the bread question and the leather question,
and a Senate committee would be considering legislation to alleviate
the worst evils of the bread and shoe monopolies without stopping the
game entirely.
Footnote 347:
In their established tariffs our railroads do apply the same rates per
hundred whether the goods moved in carloads or train loads. The
Commission has held that the law requires this, and Commissioner
Prouty says that the open adoption of any different rule would create
an insurrection that Congress would hear from from all parts of the
country; but he thinks that in certain cases, live-stock and
perishable fruit for example, the railroads should have a right to
make lower rates by the train-load than by the carload. In reference
to cost of service there is ground for such a difference, but on
grounds of public policy is it not a mistake to favor the giant
shipper in this way and so help the building of trusts and monopolies?
Footnote 348:
Sixth Annual Report, Interstate Commerce Commission, p. 7.
Footnote 349:
_Outlook_, July 1, 1905, p. 577.
Footnote 350:
Public-domain text, read in full here on John Shaqi.
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