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 the Chattanooga Case it appeared that rates from New York and other
points via South Atlantic points to Chattanooga were higher than to
Nashville, 152 miles further on. The Commission in December, 1892,
ordered this discrimination to cease. The order was not obeyed. Suit to
enforce it was brought in the Circuit Court, and a decision sustaining
the Commission was rendered in February, 1898. And in November, 1899,
the Court of Appeals confirmed the decision, holding that the ruling of
the Supreme Court in the Midland Case did not apply, because “normal
competition” would give Chattanooga the same rates as Nashville.[138]
But the Supreme Court in 1901 reversed the lower courts and decided
against the Commission.[139]
The Georgia Railroad Commission Cases, also decided by the Interstate
Commission in 1892, went the same way, the United States Supreme Court
again deciding against the Interstate Commission on the long and short
haul clause, holding that any substantial competition of markets or
railways creates dissimilar conditions within the 4th section.[140]
The result is that dissimilarity of conditions created by the railroads
themselves becomes the means of freeing them from the long-haul rule of
the 4th section of the Interstate Act.
In the South a method called the “basing-point system” is in vogue. The
railroads name certain towns as distributing centres and competing
points, fix the rates to and from these points, and make rates to and
from other localities by adding to such through rates the local charges
in force between the distributing centres, or “basing-points” and the
said other localities.
The Commission says: “Our annual reports to Congress and reported
decisions in cases have uniformly condemned this distributing centre
theory of rate-making, but the Southern carriers have resisted our
efforts to correct the practice.”[141]
Public-domain text, read in full here on John Shaqi.
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