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
In 1896 the railroads carried Minneapolis flour to New York for 10 cents
a hundred, while charging New York State millers 18 cents a hundred to
New York City.
President Stickney of the Chicago and Great Western Railroad, in a
discussion the same year with the representatives of other western roads
before the I. C. C., said: “You charge the Kansas and Nebraska farmer 13
cents to haul his grain 200 miles while you charge the grain dealer 6
cents to haul that same grain twice as far to Chicago.... I have been
acquainted with this northwestern country for thirty-five years. In all
that time there has never been a year that the corn crop was moved until
after the corn was in the hands of dealers who had the rate. Once the
farmer is compelled to sell his grain, then you fellows cut the rate for
the dealer.” That is, the railroads charge the farmer shipping to the
Missouri River a mileage rate 4 times as high as the rate to the dealers
shipping to Chicago, and freeze out the small dealers from shipping to
Chicago by making secret rates in favor of the big dealers.
Coal was shipped from Chicago to Omaha and then reshipped to Grinnell,
Ia., 225 miles back toward Chicago, more cheaply than it could be got
direct from Chicago.
“A large manufacturing establishment located in the latter town, making
agricultural implements which were sold principally on the Pacific
Coast, found it advantageous to abandon its plant and transfer its
machinery and employees to Chicago on account of the unfavorable rates.
“A large factory for making barbed wire, located in the city of Des
Moines, in like manner abandoned its buildings and transferred its
establishment to Chicago, finding that it saved a large sum on every
carload of wire it shipped, although the wire was mainly carried
directly by or through its old location, 300 miles nearer the Pacific
Coast than Chicago.”[117]
To certain towns in Nebraska and other States the railways have extended
the same rates that apply to Missouri River points, where the rates to
Chicago are very low, while other towns in the same region have to pay
the Missouri River rates to and from Chicago, plus the local rate from
the river point.[118]
Public-domain text, read in full here on John Shaqi.
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