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 condition of things in 1890 is shown by the reported statement of a
Chicago railroad manager quoted by the Commission. “The situation in the
West is so bad that it could hardly be worse. Rates are absolutely
demoralized, and neither shippers, passengers, railways, nor the public
in general make anything by this state of affairs. Take passenger rates
for instance; they are very low; but who benefits by the reduction? No
one but the scalpers.... In freight matters the case is just the same.
Certain shippers are allowed heavy rebates, while others are made to pay
full rates.... The management is dishonest on all sides, and there is
not a road in the country that can be accused of living up to the
Interstate Law. Of course when some poor devil comes along and wants a
pass to save him from starvation, he has several clauses of the
Interstate Act read to him; but when a rich shipper wants a pass, why,
he gets it at once.”[57]
Complaints and investigations from time to time in subsequent years
showed the continuance of these conditions. For one concern a large
number of cars of corn were carried from Kansas City to St. Louis at 6
cents per hundred lbs. while the tariff was 15 cents.[58] In the traffic
to Chicago one firm shipped all the grain over one road, and another
firm “had the rate” on another line. It was clear that these shippers
had advantages that enabled them to keep other shippers out of the
field.[59]
A wholesale grocery house getting 25 percent rebate on its shipments
established branches in various cities. Through a disagreement with one
of the railroads that thought it was not getting its share of the
business, the rebate enjoyed by one of the branches was withdrawn, and
the branch in that city went out of business. A leading dry-goods firm
declared that so long as it secured a rebate of 25 percent it had no
objection to existing methods of rate-making.[60]
The International Coal Company declared, in a suit against the
Pennsylvania Railroad for damages, that it was driven out of business by
discrimination, its rival receiving rebates of 20 cents per ton in
1898–9 and 10 cents per ton in 1899–1900.
The railroads show a disposition to back each other in disregarding the
law. Mr. McCabe, traffic manager for the Pennsylvania lines west of
Pittsburg, said the Pennsylvania system would stand by any rate made by
its connecting lines.[61]
CHAPTER IX.
SUBSTITUTES FOR REBATES.
Public-domain text, read in full here on John Shaqi.
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