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
“MR. WICKER. I am speaking now of when I was a railroad man. Here is
quite a grain point in Iowa, where there are 5 or 6 elevators. As a
railroad man I would try and hold all these dealers on a “level keel”
and give them all the same tariff rate. But suppose there was a road of
5 or 6 or 8 miles across the country, and these dealers should begin to
drop in on me every day or two and tell me that the road across the
country was reaching within a mile or two of our station and drawing to
itself all the grain. You might say that it would be the just and right
thing to do to give all the 5 or 6 dealers at this station a special
rate to meet that competition through the country. But as a railroad man
I can accomplish the purpose better by picking out one good, smart, live
man, and giving him a concession of 3 or 4 cents a hundred, let him go
there and scoop the business. I would get the tonnage, and that is what
I want. But if I give it to the five, it is known in a very short
time.... When you take in these people at the station on a private
rebate you might as well make it public and lose what you intend to
accomplish. You can take hold of one man and build him up at the expense
of the others, and the railroad will get the tonnage.
“SENATOR HARRIS. The effect is to build the one man up and destroy the
others?
“MR. WICKER. Yes, sir; but it accomplishes the purposes of the road
better than to build up the 6.
“SENATOR HARRIS. And the road, in seeking its own preservation, has
resorted to that method of concentrating the business into the hands of
one or a few, to the destruction of the many?
“MR. WICKER. Yes, sir; and that is a part and parcel of the system.”
On page 189 the committee says:
“The practice prevails so generally that it has come to be understood
among business men that the published tariffs are made for the smaller
shippers, and those unsophisticated enough to pay the established rates;
that those who can control the largest amounts of business will be
allowed the lowest rates; that those who, even without this advantage,
can get on ‘the inside,’ through the friendship of the officials or by
any other means, can at least secure valuable concessions; and that the
most advantageous rates are to be obtained only through personal
influence or favoritism, or by persistent ‘bulldozing.’
“It is in evidence that this state of affairs is far from satisfactory,
even to those specially favored, who can never be certain that their
competitors do not, or at any time may not, receive even better terms
than themselves. Not a few large shippers who admitted that they were
receiving favorable concessions testified that they would gladly
surrender the special advantages they enjoyed if only the rates could be
made public and alike to all.”
Again, on page 191:
Public-domain text, read in full here on John Shaqi.
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