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
We have seen in Chapter III how President Mosher of the Northern Grain
Company fought La Follette’s railroad reforms because of his deep
sympathy with, and appreciation of, the rights of railroads that were
paying his company $30,000 a year in secret rebates. Another man who
bitterly opposed La Follette, denouncing him as “an inciter,” a
demagogue, etc., was an officer of one of the refrigerator companies
that carries beer for a big Milwaukee brewery. At the very time this
official condemned La Follette, his company was receiving from one to
three thousand dollars a month in rebates from a single one of the
Wisconsin railways, in addition to the mileage profits on the cars. No
wonder the brewers and their allies opposed all progressive railroad
legislation when they were getting $73,240 a year in mileage rentals,
and many thousands more in secret rebates or commissions from the
Chicago, Milwaukee, and St. Paul alone. These men were strongly of
opinion that there was law enough already.
An investigation in Minnesota a little before that of Wisconsin showed
precisely the same sort of facts, namely, enormous amounts in rebates
were paid by the Great Northern, the Northern Pacific, and other
Minnesota railroads. But in the Minnesota cases, to forestall further
agitation and publicity, most of the railroads paid the additional taxes
demanded by the State.
The railroads do not by any means confine their rebate operations to the
States in which their lines are located. The case of the Camden Iron
Works, recently before the Interstate Commerce Commission, shows that a
railroad will reach half across the continent with a rebate in its hand
to grasp important shipments. In this case the Northern Pacific gave R.
D. Wood & Co. of Philadelphia, the owners of the Iron Works, a rebate of
5 cents a hundred on 1,500 tons of iron pipe. The Great Northern, the
Canadian Pacific, the Delaware & Hudson, and other roads had agents on
the spot trying to get the business away from the Pennsylvania, which
would naturally have taken the shipment, but the 5 cent rebate carried
the day and the iron went via the B. & O., the Great Lakes, and the
Northern Pacific. The rebate was paid by a check for $1,500, and no one
but the traffic managers knew of the transaction, which would probably
never have come out except for the complaint of a traffic agent on the
Pennsylvania, who had offered a rebate of 1 cent a hundred but did not
get the business and was therefore blamed by his superiors.
CHAPTER XIX.
THE COLORADO FUEL REBATES AND OTHER CASES.
Public-domain text, read in full here on John Shaqi.
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