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
Investigations by the Commission in December, 1901, and January, 1902,
took the lid off of the dressed-meat business and discovered a large
congregation of secret rebates. The Pennsylvania system was cutting the
rate on packing-house products 5 to 7 cents below the published rate,
making it 25 cents and sometimes 22 cents, in place of 30 cents, from
Chicago to New York. Rates from Indianapolis, Cincinnati, and other
points were also cut.[104]
The examination brought out the fact that President Cassatt and other
officers above the traffic manager knew what he was doing and authorized
or permitted the rate cutting.[105]
“COMMISSIONER CLEMENTS. Who takes the responsibility for doing these
things, for making these serious departures and cuts, in regard to the
Pennsylvania Railroad? Is it you? Do you do it without any authority
from the officers of that road above you, or do you have their approval
of it?
“MR. MCCABE. I am in charge of the freight traffic, and I do the best I
can under the circumstances.
“COMMISSIONER CLEMENTS. Do you act independently of them, or do you have
to have their approval?
“MR. MCCABE. I assume to do what I think is proper, being governed by
the competitive conditions.
“COMMISSIONER CLEMENTS. Do you have reason to know that the officers
above you in the management of that company’s affairs knew of it?
“MR. MCCABE. Not in detail.
“COMMISSIONER CLEMENTS. I do not mean the details. I could have answered
that myself. But as to the general fact that the Pennsylvania Railroad
was cutting the rate in this serious way, was it known to the president
of that company and other officers?
“MR. MCCABE. I do not know.
“COMMISSIONER CLEMENTS. Have you ever had any conference with the
officers above you in the management of that company’s affairs in which
you disclosed this condition of things?
“MR. MCCABE. I have said to them from time to time that rate conditions
were so and so; that rates were not being maintained, and that our
competitors were cutting the rates.
“COMMISSIONER CLEMENTS. And that you must cut the rates? Did they
sanction it, or approve it, or tell you to stop it?
“MR. MCCABE. I think they left it to my discretion.”
The Big Four, a Vanderbilt line, cut rates 6 cents below the 30 cent
tariff from St. Louis.[106]
Mr. Mitchell, traffic manager of the Michigan Central, says his road
carried dressed meats at 40 cents, or 5 cents below the published rate.
“CHAIRMAN OF THE COMMISSION. Did you carry any considerable amount of
dressed meats during 1901 that paid the tariff rate?
“MITCHELL. I think not.
“CHAIRMAN. Practically all of it went at some secret rate?
“MITCHELL. Yes, sir.”
This man thought his road paid the four Beef Trust houses $200,000 or
$240,000 a year in rebates.[107]
Public-domain text, read in full here on John Shaqi.
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