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
Part of the Wisconsin rebates were paid on State business, but far the
larger part was on interstate traffic. The Elkins Law, instead of
putting an end to the payment of rebates, as so many railroad men have
declared, had no effect whatever, apparently, on the volume of rebates
paid. Here is the monthly record of rebates paid in 1903 by one of the
principal railroads operating in Wisconsin:
January, 1903 $37,000
February 57,000
March 47,000
April 36,000
May 25,000
June 13,000
July 101,000
August 32,000
September 46,000
October 9,000
November 666
December 2,032
The Elkins Act went into effect February 19, 1903; yet the rebates in
February and March were larger than in January; and the rebates for July
were nearly three times the January figure. It is clear, however, that
when the light of publicity was turned on by the investigation, which
began September 29, 1903, the rebate payments that could be checked up
on the books dropped from $46,000 in September to $9,000 in October,
$666 in November, and $2,032 in December. Instead of paying cash rebates
the railroads began to issue a great many “midnight tariffs,” that is,
rate schedules printed on purpose to give favored shippers advantages
over others and then revoked or superseded as soon as the purpose has
been accomplished, so that the midnight tariff has, in a different way,
done exactly what is done by the payment of the cash rebate.
The impotency of the Elkins Law is still further shown by the fact that
the total rebates paid by the railroads in 1903 were greater than the
rebates of 1902. The Northwestern road, for example, jumped from
$212,075 rebates in 1902, before the Elkins Law, to $410,476 in 1903,
mostly after the Elkins Act took effect.
Public-domain text, read in full here on John Shaqi.
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