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
“But there was a belt of government land lying between the two belts of
settlement about the respective county seats, which the road coveted,
and if the line passed through the old towns there would be little
chance for the speculative directors to profit by laying out town sites.
So the road was laid out and built through the unsettled lands, avoiding
every old town on its route.”[121]
Sometimes discriminations are made by the use of different
classifications for local and through traffic.[122] The rate on sugar
from San Francisco to Kearney, Neb., was 77 cents per hundred lbs.,
against 50 cents, clear through to Omaha.[123] The rate on lumber from
Wilmington to Philadelphia and Boston was higher than the local rate
from Wilmington to Portsmouth or Norfolk plus the rate from Portsmouth
or Norfolk to Philadelphia or Boston.[124]
The rates from the East to St. Cloud, Minn., were higher than to St.
Paul and other more distant points. The difference against St. Cloud was
7 cents per hundred on flour and 75 to 85 per ton on coal. This
difference was two or three times the profit made by the miller, so that
the price of wheat in St. Cloud was 6 cents below the price in
Minneapolis or Princeton or Elk River, and the value of land about St.
Cloud was thereby greatly lessened.[125]
A canning factory in Emporia, Kansas, had good natural advantages and an
excellent trade in Kansas, Colorado, Texas, etc., when in 1891 the
freight rates were changed on the basis of water and rail competition
via Galveston so that canned goods could be shipped into this territory
from New York at rates that drove the Emporia factory out of business
with a loss of $50,000 and the ruin of the owner who had been the
heaviest tax payer in the county.
The Emporia furniture factory, and the Emporia stockyards have also been
ruined, it is said, by freight discriminations. In the Spokane case the
rate to Portland, 2056 miles from the East, was $30 a ton, while the
rate to Spokane, only 1512 miles, was $52 per ton. The Commission said
this was unreasonable. “If a rate of 1½ cents per ton-mile yielded a
desirable margin over the cost, a rate of 3½ cents pays an unwarranted
return.” In a Georgia case it appeared that the rate from Cincinnati to
a non-competitive town, Marietta, was 6 times as much per ton-mile as
the rate to Atlanta. The business men of Spokane paid 2 or 3 times as
much for haulage as the men of Portland, and the business men of
Marietta paid 6 times as much in proportion as those in Atlanta.
Public-domain text, read in full here on John Shaqi.
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