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
When England made the telegraph public in 1870, rates were lowered 30
to 50 percent at once, and still further reductions were afterwards
made.
When France took over the telephone in 1889, rates were reduced from
$116 to $78 per year in Paris, and from $78 to $39 elsewhere, except
in Lyons, where the charge was made $58.50.
Private turnpikes, bridges and canals levy sufficient tolls to get
what profit may be possible; but when the same highways, bridges and
canals become public the tolls are often abolished entirely, rendering
such facilities of transportation free, and when charges are made they
are lower than the rates of private monopolies under similar
conditions, and generally reach the vanishing point as soon as the
capital is paid off or before.
When Glasgow took the management of her street railways in 1894, fares
were reduced at once about 33 percent, the average fare dropped to
about 2 cents, and 35 percent of the fares were 1 cent each. Since
then further reductions have been made, and the average fare now is
little more than a cent and a half; over 50 percent reduction in 6
years, while we pay the 5 cent fare to the private companies in Boston
and other cities of the United States the same as we did 6 years ago,
instead of the 2½ cent fare we would pay if the same percentage of
reduction had occurred here as in Glasgow.
According to Baker’s Manual of American Waterworks, the charges of
private water companies in the United States average 43 percent excess
above the charges of public waterworks for similar service. In some
states investigation shows that private water rates are double the
public rates.
For commercial electric lighting Prof. John R. Commons says that
private companies charge 50 to 100 percent more than public plants.
We could offer many other illustrations of the law that public
ownership tends to lower rates than private monopoly, but this
discussion may be sufficient to indicate the complexion of the facts.
Footnote 420:
The sixteenth annual report of the Commission, dated 1905, and
covering the year 1904, has come just in time for a note before the
galleys are made up into pages. Of the 103 suits entered before the
Commission in 1904, about a quarter (25) relate to undue preference,
rebates, refusal or neglect to afford such reasonable facilities as
were accorded to others under similar circumstances; and most of the
other cases, charging unreasonable rates, etc., were really based on
some element of unjust discrimination in one form or another. (See
Appendix B.)
Footnote 421:
Public-domain text, read in full here on John Shaqi.
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