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
Railroads sometimes seek to evade the law by contracting to deliver
goods at a certain price including the freight and the payment for the
goods in one lump sum, so that the freight charge is merged and cannot
be ascertained. Nine years ago, in 1896, the Chesapeake and Ohio
Railroad contracted with the New York, New Haven and Hartford to deliver
2,000,000 tons of coal at New Haven at $2.75 a ton. The published
freight rate at that time was $1.15 and the price of the coal at the
mines $2 a ton. The Interstate Commerce Commission held that this was a
discrimination by the Chesapeake and Ohio Railroad against every
independent mine owner in its territory, and that the railroad had no
right to contract to sell coal at any price. The Federal Court sustained
this view, and it is stated that the Department of Justice will ask the
Supreme Court for a blanket injunction against the two railroads,
restraining them from carrying freight at less than the published rates.
It is said that J. Pierpont Morgan guaranteed that the Chesapeake and
Ohio would perform the contract.
Action _against_ an individual or company is quite as effective a form
of discrimination as action in favor of a rival. Shippers at a certain
place on the Chicago and Northwestern were handicapped by refusal of
through rates on asbestos, compelling them to pay higher rates than
their competitors.[82] A Southern railroad charged the Bigby Packet
Company a much higher rate on cotton from Mobile to New Orleans than the
established rate on local shipments of cotton, in order to discourage
shipments by way of the Packet Company from the point of origin in
Alabama, and compel the cotton to travel all the way by rail.[83]
CHAPTER X.
DENIAL OF FAIR FACILITIES.
Public-domain text, read in full here on John Shaqi.
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