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 refusal to furnish cars in fair proportion is a familiar form of
discrimination all through this period, usually in combination with
other forms of preference. In Kansas, on the line of the St. Louis and
San Francisco Railway, were two coal companies whose plants were of
about equal capacity, and several individual shippers. The railway and
its officials became interested in one of the coal companies, and by
rebate and other process it was given rates which averaged only forty
percent of the rates charged other shippers. The result was that all the
other shippers were driven out of business, part of them being
hopelessly ruined before giving up the struggle. In addition to rate
discrimination the railway practised gross favoritism in the
distribution of cars. For example, during one period of 564 days, as was
proven in court, the road delivered to the Pittsburg Coal Company 2,371
empty cars to be loaded with coal, although such company had sale for,
and capacity to produce and load, during the same period, more than
15,000 cars. During the same time this railway company delivered to the
Rogers Coal Company, in which the railway company and C. W. Rogers, its
vice-president and general manager, were interested, no less than 15,483
coal cars, while 466 were delivered to individual shippers. In other
words, the coal company owned in large part by the railway and its
officials, was given 82 percent of all the facilities to get coal to
market, although the other shippers had much greater combined capacity
than the Rogers Coal Company.
During the last four months of the period named, and when the Pittsburg
Coal Company had the plant, force, and capacity to load thirty cars per
day, they received an average of one and one-fourth cars per day,
resulting as was intended, in the utter ruin of a prosperous business
and the involuntary sale of the property, while the railway coal
company, the railway officials, and the accommodating friends who
operated the Rogers Coal Company, made vast sums of money; and when all
other shippers had thus been driven off the line the price of coal was
advanced to the consumer.
Another railway interested in a coal mine furnished cars in abundance to
that mine and to others that would sell their product to the mining
company in which the railway was interested, but systematically failed
to furnish cars to other operators.[84] One operator, after being forced
for years in this way to sell his product to the railway mining company
at a very low price, was obliged to build a railway of his own in order
to reach other lines of railroad and so have a fighting chance for cars.
In Arkansas a coal mine owned by the Gould interests was able to ship
its product to market at very low rates, while the owners of an
adjoining mine were forced to haul their coal to the same market in
wagons because the rates charged them from the coal railway were so high
as to absorb the whole value of the coal at destination.
Public-domain text, read in full here on John Shaqi.
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