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
As a matter of fact, discriminating rates and rebates on interstate as
well as State business were soon as much in fashion as ever.[55]
In one small town in the Middle West judgments for nearly $40,000 were
recovered against a railroad for illegal discriminations in that one
town. In some cases the discriminations amount to $40 a car. These cases
were all subsequent to the Interstate Act.
Some years ago the Chief Justice of Kansas declared that the Santa Fe
management preceding the present one was notorious for giving secret
rebates. The president of the road was asked to resign because the
railroad funds were some millions short, due, it is said, to the secret
rebates the company had paid. An expert went over the books and
discovered that some $7,000,000 had been paid in rebates by the Santa Fe
in a few years.
Shippers who would not or could not get rebates or concessions were in
danger of serious loss and perhaps ruin. Mr. H. F. Douseman, for many
years a grain shipper in Chicago, and chairman of the board of trade of
that city, had to go out of business because he would not take the
rebates he might have had. Before 1887 he took rebates of 10 or 15
percent (2 or 3 cents on the cwt.), but after that he refused them.
“Virtue is its own reward,” and Mr. Houseman got his pay in that form.
“I feel that I have been driven out of business because I would not
accept a rebate,” he told the Industrial Commission. “I have never taken
a rebate since the Interstate Law went into effect. I did not propose to
put myself in the shape of a criminal.”[56]
It may be a matter of surprise to many that even one man of this kind
could be found in Chicago. If such virtue were prevalent the enforcement
of law would be easy. Mr. Douseman says that for 6 months after the
Interstate Law was passed no rebates were paid; everybody was on an
equality. “After the first six months, rebates began to be given. At the
end of the first year they were quite frequent, and they have continued
ever since. Prior to 1887 the only time when rates were absolutely
solid, when every one was on the same basis, was when the Vanderbilts
were trying to bankrupt the West Shore road, and rates were down to 12
cents in New York. Everybody then, as I understand, had the same rates.”
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account