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
A thoughtful writer in the _Popular Science Monthly_ says: “The most
serious class of unjust discriminations includes those which have for
their victims the entire populations of towns, cities, and even
extensive districts, which are made to suffer from the unfair adjustment
of railway rates. Practically the whole region south of the Potomac and
Ohio and east of the Mississippi has continuously suffered from
discriminations of this kind through the system of making charges to a
few selected cities the basis for through rates to all other points.
Through rates are made to and from about two hundred of the larger
towns, including Atlanta, Birmingham, Chattanooga, Vicksburg, New
Orleans, and Mobile, and traffic shipped from or to all other points is
charged the rate to one of these basing-points plus the local rate from
such basing-points to final destination. In practice it is common to
make the combination by the use of rates to and beyond whatever
basing-point will give the lowest total, whether on the line traversed
by the shipment or not. Thus a shipment from Cincinnati to a point on
the line from that city to New Orleans may be charged the full rate to
New Orleans plus that from the latter back to the local point. The
condemnation of such a system cannot be too severe. It not only limits
the commercial activities of the towns unjustly discriminated against
and restricts the sources from which they can directly draw supplies,
but by hindering their growth it retards the development of the entire
section, including the cities supposed to be favored.”[142]
In a case decided in 1894 it was found that hay was being carried from
Memphis through Summerville to Charleston for 19 cents a hundred,
against 28 cents a hundred from Memphis to Summerville, the 9 cents
difference being equal to the local rate from Charleston back to
Summerville. “The difference of $1.80 per ton was sufficient to preclude
the Summerville dealer from selling in neighboring towns in competition
with Charleston dealers. The Summerville dealer was thus practically
confined to Summerville for a market, and even there had to compete with
dealers doing business at Charleston 19 miles away. If $3.80 per ton is
profitable to the carriers for bringing hay in carloads from Memphis to
Charleston, then $5.60 per ton, nearly 50 percent more, from Memphis to
Summerville, which is nearer than Charleston is to Memphis, represents
an extra profit of $1.80, which the carrier did not and could not show
to be equalled by extra cost of transporting a car of hay and delivering
the same at Memphis.” The Commission (June 1894) ordered the carriers
not to charge more from Memphis to Summerville than from Memphis to
Charleston, holding that competition of markets or of railways would not
justify a higher charge for a shorter than for a longer haul. The order
was made in September. In its report to Congress in December the
Commission said, “The order has not been obeyed.”[143]
Public-domain text, read in full here on John Shaqi.
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