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
Mr. Grammer, general traffic manager of the Lake Shore, testified in
1902 in respect to “provisions,” cut meats, lard, etc., from Chicago to
New York: “The minimum weight on a car of provisions is 28,000 lbs. The
rate is 25 cents. That is about the maximum rate obtained this last
year, 1901, and that means $70 a car. We pay out of that to the
stockyards $2.40 a car for switching, we pay $15 car-mileage for a round
trip of the car, and at New York we pay 3 cents a hundred lighterage;
that is, $2.40 and $15, $17.40, and $8.40—$25.80 which we pay out of
that rate as absolute arbitraries. That leaves the Lake Shore $16 or $17
net for hauling that car to Buffalo, with the return car empty, and we
have to give practically passenger service to that traffic. I think it
is unremunerative business, and I have always taken the position that we
do not want any provisions on the Lake Shore road at less than the full
tariff rate, whatever that might be. The dressed-beef minimum will
average 22,000 lbs. That car is subject to the same arbitraries and
mileage. The lighterage is 3 cents a hundred, which would be $6.60
instead of $8.40, and it is subject to the same service eastbound and
westbound as to movement; and there is not 1 percent of those cars
loaded east with dressed beef that are loaded with any freight coming
west.” In spite of the unremunerative character of the business Manager
Grammer says they cut the rate 5 cents a hundred.[111]
Mr. Paul Morton, at the head of the traffic department of the Santa Fe,
testified in 1902[112] that his road carried dressed meats and
packing-house products below the published rates in violation of law.
“MR. MORTON. We have carried the business from Kansas City to Chicago
for 5 cents less than the published tariff to Chicago and Chicago
junction points.
“MR. DAY. Domestic as well as export?
“MR. MORTON. Both.”
“The Santa Fe,” he said, “at the beginning of 1901 joined with the other
roads in a general declaration of good faith and intention of an
absolute maintenance of rates. We maintained the rate until about April
1.” The Santa Fe found that they were only carrying 2 percent of the
packing-house business out of Kansas City, although they brought in 33⅓
percent of all the live-stock that entered the city. So “we told one of
the largest shippers in Kansas City that if they would come and ship
with us we would give them 5 cents reduction from the tariff, and in
order to get them we had to promise to do it for a year—I think until
the first of July of this year, 1902.”
Continuing, the witness admitted the illegality of the transaction.
“MR. MORTON. Yes, sir; it is an illegal contract. It was illegal when we
made it, and we knew that.
“COMMISSIONER CLEMENTS. Can you tell how much you paid out in a year?
“MORTON. On this business?
“CLEMENTS. Yes, sir. Have you any idea whether it is $50,000 or $100,000
or $10,000—anything definite? Of course it is a mere guess and you do
not know—
Public-domain text, read in full here on John Shaqi.
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