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
To shut out the oil fields and independent refineries of Colorado and
Wyoming, the Standard resorted to terrific discrimination in rates. The
Chicago and Northwestern Road would bring a carload of cattle from
Wyoming to Chicago for $105, but for a car of 75 barrels of oil the
freight was lifted to $348. The rates from the Western fields to San
Francisco were also put very high, and the Standard built great
storehouses on the Pacific Coast, which it fills from the Eastern
fields, the freight rates from the East being suddenly lowered when it
wishes to refill the said storehouses, and put back again as soon as
they are full. The people of California are compelled to buy Eastern oil
for the profit of the Trust, instead of buying Colorado oil, because the
freight on the latter is prohibitive.
Aside from these sudden fainting spells of the oil tariff at convenient
seasons for the Standard, the ordinary arrangements showed thoughtful
care for its comfort. The regular rate on oil from the Colorado oil
wells to the Pacific Coast was made 96 cents per hundred, while the rate
from Chicago through Colorado is only 78½ cents per hundred.[101]
The Chicago pork-packers generally had things their own way in this
period, but apparently not always. In 1890 the Commission decided that
the railroads were discriminating against the Chicago packers by lower
rates from the Missouri River on hog products than on live hogs.[102]
Even then, however, they were receiving rebates from the railroads which
made questions of tariff rates comparatively insignificant.
In 1891 the Federal Grand Jury indicted Swift & Co., the Chicago
packers, for having received $5,000 a month in rebates from one road
alone, the Nickel Plate. Compared to the train loads of their cars
passing east and west on other lines, their traffic on the Nickel Plate
was light.
In his testimony to the Senate Committee this spring, Mr. Davis said: “A
few years ago one of the Chicago packers was a director on a Western
railroad. He was a large receiver of live-stock from Kansas City, upon
which the freight rate was $54 per car. A rebate of $25 was paid to the
packer at the time of shipment, and it was the custom to file claims for
the remaining $29, which were allowed on the grounds of some imaginary
loss or damage to the stock in transit. The same party paid rebates
amounting to from $30,000 to $50,000 a month for every month in the
year. On putting down on a piece of paper the amount of $10,000, and
after placing this under the eyes of a superior officer, he would leave
and subsequently look for that amount in currency by express, and would
then proceed to divide it among certain favored shippers.”[103]
A few years ago, in proceedings before Judge Grosscup of Chicago, it
appeared that while the published rate on packing-house products was 23½
cents, the favored packers were given a rate as low as 15 cents.
Public-domain text, read in full here on John Shaqi.
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