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 general fact came to be that in proportion to the distance they
were carried those able to pay the most paid the least. One without
means had seldom any ground on which to demand free transportation,
while one with wealth was likely to have many grounds on which he could
make it for the interest of the railroad company to favor him; and he
was oftentimes favored with free transportation not only for himself and
family, but for his business agents also, and even sometimes for his
customers. The demand for free transportation was often in the nature of
blackmail, and was yielded to unwillingly and through fear of damaging
consequences from a refusal. But the evils were present as much when it
was extorted as when it was freely given.”[29]
The Commission had plenty to do. Complaints of unreasonable rates and
unjust discriminations between shippers, commodities, and places poured
in upon it, and vigorous decisions against favoritism and excessive
rates poured out upon the railroads. During 1887 and 1888 the Commission
dealt with cases of passes issued in contravention of law,[30]
preferential fares for drummers,[31] commissions on the sale of
tickets,[32] discounts on freight rates to large shippers,[33]
discrimination by combination rates,[34] by preference of tank shipments
of oil,[35] by unfair distribution of cars,[36] by underbilling,[37]
false classifications,[38] commissions to soliciting agents,[39] etc.
Underbilling, false classification, false weighing, and commissions to
soliciting agents were investigated by the Commission in 1888 at New
York, Buffalo, Detroit, Chicago, Omaha, Lincoln, and Washington.[40] All
these methods of discrimination were found widely prevalent, and new
legislation was asked for imposing a penalty on shippers who
fraudulently obtained reduced rates.
When Congress met for the session of 1889 it was believed that the law
had greatly reduced the number of passes issued, straightened out a part
of the long-haul discriminations, and accomplished a good deal in the
way of suppressing rebates, but it was clear that much remained to be
done. In one way or another all over the country secret discriminations
were still being made for the benefit of favored shippers. Congress
therefore in March, 1889, amended the Interstate Commerce Act by adding
to the fine a penalty of two years’ imprisonment in the penitentiary in
case of unlawful discrimination, and pronouncing the same penalties
against shippers and their agents who secure advantage by false billing,
false classification, etc., or by soliciting or otherwise inducing a
railway to discriminate in their favor, or by aiding or abetting any
such discriminations. It was also provided that 3 days’ notice must be
given in case of any reduction of rates, and that homeless and destitute
persons, as well as preachers, might be favored with low fares.
Public-domain text, read in full here on John Shaqi.
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