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
Social Circle, situated between Atlanta and Augusta in Georgia, was
required to pay a rate from Cincinnati made up of the rate to Atlanta
plus the local rate from Atlanta to Social Circle, while Augusta,
considerably more distant, had rates from Cincinnati no higher than
those to Atlanta. The Commission in June, 1891, ordered the railroad to
cease charging more from Cincinnati to Social Circle than for the longer
distance to Augusta.[144]
Hill and Brother, in the wholesale grain, flour, and hay business at
Cordele, Ga., were in competition with dealers at Albany, Americus, and
Macon, which were made basing-points and had lower rates than Cordele
from the common source of supply. Cordele was shown to be nearer the
coast than the other points, and to have several railway routes from
Nashville, so that it could not be excluded from the low rate list on
competitive grounds. The railroad men said it was excluded because it
was not so large a distributing point as the other places, but admitted
that if it had equally low rates it would largely increase as a
distributing centre; so that the case stood thus: The railroads did not
give Cordele equally low rates because it was not a sufficiently large
distributing centre, and it was not a sufficiently large distributing
centre because it was denied equally low rates; _i. e._, the railroads
sought to excuse themselves for wrongdoing by offering the results of
the wrong in justification. The Commission refused to allow the
railroads to take advantage of their own wrong and condemned the Cordele
rates.[145]
The Louisville and Nashville charged $3.69 per ton on pig iron from
Birmingham, Ala., to Cordele, Ga., 267 miles, and only $1.80 a ton from
Birmingham to Macon, 332 miles. On coal the rate was $2.60 to Cordele
and $1.60 to Macon. The Commission decided that the rates to Cordele
should be no higher than to Macon.[146]
La Grange is 71 miles nearer New Orleans than Atlanta, yet the rates to
La Grange were made so much higher than to Atlanta that an Atlanta
dealer could ship goods from New Orleans through to Atlanta and then
back to La Grange as cheaply as the goods could be shipped direct to La
Grange.[147]
To keep traffic from going to Savannah and make it go to the Northwest
or to Pensacola, the Louisville and Nashville made very high rates on
shipments to Savannah. On Savannah traffic the Nashville haul was short
and the receipts small; on shipments to the Northwest the Nashville
receipts were much larger, and in Pensacola it had a special interest.
So the Savannah cotton rate was advanced from $2.75 to $3.30 a bale, and
the rates on naval stores were also made much higher than to Pensacola
or to the Northwest.[148] The Commission ordered the railroad to
discontinue the discrimination against Savannah, January, 1900, and the
Circuit Court sustained the decision, July, 1902.
Public-domain text, read in full here on John Shaqi.
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