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
“Private cars,” owned by the railroads but chartered for private use,
were the subject of discrimination of another kind. For example, a
commercial salesman travelled with his assistant over the Northern
Pacific in a private car stocked with samples. For the first trip he
paid 15 round-trip fares between St. Paul and Portland, but for
subsequent trips the road charged 15 local fares from point to point
where stoppages were made. As theatrical and other parties in private
cars were usually carried for 15 round-trip fares it was alleged to be
unfair to charge the drummer local rates.[65]
Terminal charges for delivery at certain places were made a means of
discrimination.[66] Free cartage for some shippers and not for
others,[67] or for one town and not for another, gave a decided
advantage to the favored shippers.
To get the business of B., a Pittsburg dealer in beer, the B. & O., with
the approval of Wight, one of its general officers, gave B. 3½ cents per
hundred for hauling his own beer from the station, while K., another
beer dealer there, received no such concession, but paid the same
freight rates and hauled his beer at his own expense. Wight was indicted
and convicted before the district court for violation of Section 2 of
the Interstate Act, and the United States Supreme Court sustained the
decision in 167 U. S. 512, May, 1897, holding that the cartage allowance
in one case and not in the other was a discrimination under the 2d
section of the Commerce Act.
In Grand Rapids, Michigan, free cartage had been in vogue for 25 years,
but in Ionia, near by, no free cartage was afforded by the railroads,
although the station was nearer the centre or main delivery area of the
city than in Grand Rapids. This had the effect of a discrimination
against the merchants of Ionia amounting to about 2 cents per hundred
lbs.[68]
In June, 1889, the Commission asked most of the leading roads, 585 in
number, for information about free cartage delivery. From the answers it
appears “that 65 railroads allowed free cartage delivery or equalizing
cartage allowances, and 389 railroads do neither; 200 companies only
switch cars over to mills and manufacturers. No company furnishes free
cartage delivery at all stations, but as a rule, only at a few stations.
The estimated cost of free cartage delivery will average about 2½ cents
per hundred pounds. Where an allowance is made for switching or for
equalizing distances from shippers, the average cost is about $2 per car
or $2.50.”[69]
Denial of the stoppage-in-transit privilege at one locality while
allowing it to others is unlawful.[70] Differences in the time allowed
for unloading may amount to a substantial preference. At Philadelphia 96
hours was allowed for unloading, against 72 hours at interior points,
for coal, coke, or iron, and 48 hours for other goods. With demurrage
charges of $1 for each day’s delay in unloading beyond the allotted
time, the difference between 48 and 96 hours would mean $2 a car.[71]
Public-domain text, read in full here on John Shaqi.
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