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 Elkins Bill became law in February, 1903. In December of the same
year the Interstate Commerce Commission reported that they believed the
payment of rebates was largely discontinued, but that pressure upon the
companies to maintain published rates had “begotten a new crop of
expedients for the purpose of favoring particular shippers.”[177]
Private-car abuses and terminal-railway abuses especially have “grown up
much more intensely and to an aggravated degree since the Elkins Act
than ever before.”[178] In 1902, in consequence of the exposure of
wholesale rebates in the dressed-meat traffic, etc., temporary
injunctions were issued against 14 leading railroads of the West, and
while the matter was still before the court the Elkins Bill was passed,
settling the injunction question in favor of the Commission. The
railroads, convinced that rebates were dangerous, for the time at least,
turned their attention to methods of discrimination not so subject to
injunction or other judicial disorder. To these they have given their
main allegiance, though they have by no means abandoned the rebate.
CHAPTER XVIII.
THE WISCONSIN REVELATIONS.
In 1903, as stated in a previous chapter, Governor La Follette began an
investigation of the railroads in Wisconsin, in relation to illegal
deductions from the gross earnings returned by them as a basis for
taxation. The investigation covered the period from 1897 to 1903, and it
was found that $10,500,000 of illegal tax deductions had been made in
that time, about $7,000,000 of which was in the form of unlawful rebates
and discriminations. Every railroad of any importance in the State had
paid rebates every year in large amounts both on passenger traffic and
freight business. Here is a table of the rebates paid in violation of
the Interstate Commerce Act and the Elkins Law by the leading railways
in Wisconsin, so far as brought to light by the investigation:[179]
ILLEGAL REBATES PAID TO SHIPPERS IN WISCONSIN, 1897–1903.
FREIGHT. PASSENGER.
Chicago, Milwaukee & St. Paul $1,346,237. $170,968.
Chicago & Northwestern 3,023,810. 614,361.
Chicago, St. Paul, Minneapolis & Omaha 515,323. 64,559.
Wisconsin Central 244,492. 82,475.
“Soo Line” 464,041. 39,807.
Burlington 366,105.
Other Railroads 158,677. 489.
——————————— —————————
$6,118,689. $972,661.
These figures represent only part of the rebates really paid, and do not
touch in any way the vast amount of favoritism which does not take the
rebate form nor appear in any cash item.
Public-domain text, read in full here on John Shaqi.
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