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 extent to which railroads sometimes go in place discriminations is
shown by cases cited in Cator and Lewis. One of the towns on the route
of the Northern Pacific in Montana incurred the displeasure of the
railway authorities, and they determined to ruin it and build up a new
town. So they refused to stop their trains in the town or have a depot
there. The railroad built a new depot on lands of its own, 3 miles
beyond, and ran its trains through the old town to the new site, thereby
feeding its revenge and enhancing the value of its own land at the same
time, at the cost of ruining the town already established. The courts
sustained the railroad’s claim that it had a right to run through to the
new depot, though some of the judges dissented, regarding such favor as
despotic and destructive of public rights.[119]
“A town in the State of Iowa, which had thriven under reasonable
railroad facilities, was almost depopulated by a change of ownership of
the railroad line upon which it depended.
“As the result of discrimination forty American families were driven out
of this small town in a single year. Their property was rendered almost
worthless, and with great pecuniary loss from no fault of their own they
were obliged to abandon their homes and seek new habitations and new
avocations. Cases like this were abundant throughout the West. This
merely illustrates what was going on in a dozen great States where
cities, towns, and villages were being depopulated or their business
establishments placed at great disadvantage by reason of iniquitous
discriminations.”[120]
Peopled flocked into the towns and cities favored with the low rates,
and when the competitive rates were removed, as they have been in many
cases, the boom towns collapsed, and the inflated building and business
interests shrunk to skin and bone.
Better accommodations are frequently accorded to places in which the
railway or its officers are interested than to other places. When a new
road is projected there are usually town-lot and land companies along
the lines, in which prominent officials of the road may be directly or
indirectly interested. Their knowledge of the future location of the
road is utilized in purchasing tracts of land at low values to be used
for town sites and sold at high prices after the railway is built.
“Sometimes the entire road becomes a land-grabbing scheme with a
town-lot speculation attachment. The western half of one of the
principal roads in Iowa was built mainly on this plan. Its natural route
was along one of the old stage roads running through the county seats of
the counties through which it must pass. About these towns was a
well-settled country, with rich farms well improved for that early day.
The towns were moderate in size, but had been established as trading
points for many years, and stores, schools, and churches had grown up.
Public-domain text, read in full here on John Shaqi.
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