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
“MR. BIDDLE. It means just exactly what I said it meant. I said that the
rate we published to Deming on coal was published with the full
knowledge that it did not apply on coal destined to the Southern
Pacific, or coal going to points on the El Paso and Southwestern.
“MR. FIELD. With whose full knowledge?
“MR. BIDDLE. With my full knowledge.”
That is to say: The law requires all rates to be published and adhered
to, so that the Commission and the public may know what rates are being
charged. The traffic manager publishes a rate on coal, knowing that he
intends to give a secret cut rate to special customers, and then
testifies that the secret rate is no breach of the published tariff or
violation of law because the tariff was published with his full
knowledge that he wasn’t going to stick to it. The law in such case
depends entirely on what the railroad manager whispers to himself when
he issues the tariff. If the manager says to himself, “I intend to
follow this tariff which I’m sending to the Interstate Commerce
Commission,” then a rate lower than the tariff is in violation of the
law; but if the manager says, “I intend to give the Southern Pacific and
the El Paso lower rates than this tariff shows,” then the tariff is
issued with full knowledge that it doesn’t apply to Southern Pacific and
El Paso, and cut rates to Southern Pacific and El Paso and their
customers constitute no violation of law.
The Caledonian Company was organized in 1888 to operate a coal mine at
Gallup, N. M., on the Santa Fe.
The company sold large quantities of engine coal to the Santa Fe. The
contract expired in 1898 or 1899, and was not renewed, the parties not
being able to agree on the price; but the Santa Fe continued to buy more
or less coal from the Caledonian till 1901. Some time previous to the
expiration of the contract, the other mines at Gallup came under the
control of the Colorado Fuel Company. An agent of the Colorado Company
asked the Caledonian manager to name a price on his property, but he
declined to do so. “Soon after the Colorado Company took possession of
these mines, the Santa Fe system stopped receiving engine coal from the
Caledonian Company.” The Caledonian had a contract for engine coal with
another road, the majority of whose stock was owned by the Santa Fe.
This contract was also terminated in 1903, the manager of the road
stating that he did it, not because of any dissatisfaction, but by
direction of the purchasing agent for the Atchison.[181]
Public-domain text, read in full here on John Shaqi.
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