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
Rice, finding himself shut off from the West, North, and East, developed
new business in the South, but everywhere he went he was met with new
discriminations, and even refusals in some cases to give him any rates
at all. He could not ship to certain points at any price. In other cases
the oil rates were jumped up for his benefit, and his cars were delayed
or side-tracked by the railroads. Not satisfied with obstructing and in
large part blocking the shipment of refined oil out of Marietta, the
Combine did all it could to cut off Rice’s supply of crude oil from the
wells. It bought up and destroyed the little pipe line through which he
was getting most of his oil. Rice then turned to the Ohio fields and
brought his oil in by rail over the Cleveland and Marietta Railroad.
Under threat of withdrawing its patronage the Combine then compelled the
road to double the rates to Rice and pay over to the Combine
five-sevenths of all the freight the road collected on oil. Rice had
been paying 17 cents a barrel from the oil fields to his refinery. His
rate went up to 35 cents while the Combine paid only 10 and got 25 cents
of each 35 paid by Rice.[27] “Illegal and inexcusable abuse,” said Judge
Baxter when Rice took the case into court; and the Senate Committee was
also emphatic in its condemnation. The case is in line with the whole
history of the railroads in their relations with the Oil Combine, the
remarkable fact in this instance being that the victim had nerve enough
to fight the Combine. He took the facts to the Ohio Legislature, to the
courts, to investigating committees of New York, and Congress, and
rendered a great public service by bringing the ways of the railroads
and the trust to the light of publicity. If all the victims of the Oil
Combine had manifested equal pluck and public spirit, the evil we are
discussing would long since have ceased to exist.[28]
CHAPTER VI.
THE SENATE INVESTIGATION OF 1885 AND THE INTERSTATE COMMERCE ACT.
In 1885 the United States Senate appointed a committee to investigate
railway discriminations, etc., and this committee made one of the ablest
reports that has ever been issued in relation to railway abuses. It
threw a flood of light upon the nature and prevalence of discrimination,
and the reasons for it. On page 7 of this report the committee says that
our efficient service and low rates (low average rates) “have been
attained at the cost of the most unwarranted discriminations, and its
effect has been to build up the strong at the expense of the weak, to
give the large dealer an advantage over the small trader, to make
capital count for more than individual credit and enterprise, to
concentrate business at great commercial centres, to necessitate
combinations and aggregations of capital, to foster monopoly, to
encourage the growth and extend the influence of corporate power, and to
throw the control of the commerce of the country more and more into the
hands of the few.”
Public-domain text, read in full here on John Shaqi.
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