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
“This was done by secret arrangement between the two companies, under
which the coal was apparently billed at the published rate of freight,
although in fact the price of the coal was included. The railroad
company collected the amount shown by the billing, and paid over part of
it to the fuel company as the price of the coal, making the real charge
for transportation less than the published rate by just that amount. At
the same time the rates given and charged other shippers were the
published tariff rates without any deduction.
“This plan, and the way it was carried out, plainly indicate an
intention to deceive the Government and the public, and to enable the
fuel company to gain a monopoly of the coal supply at the points
involved by giving them a strong advantage over competitors in the
actual cost of transportation. The motive for thus favoring the fuel
company does not appear in the evidence thus far taken, but the fact is
clear.
“This secret arrangement with the fuel company involved the carriage of
hundreds of cars per month. The concessions from the established rates
must have amounted to about a million dollars for the two and one-half
years during which they were granted; and it is incredible that this
scheme was devised and carried out by any authority but that of the
chief officers of the railway company, who were in control of its
traffic department. And it was the duty of each and all of these
officers to see that the injunction (of March, 1902) was obeyed.”
The special counsel recommended that “the Atchison Company and all its
principal officers and agents who had, during the period above named or
any part thereof, power and authority over traffic agreements and
freight rates, be arraigned for contempt of court.”
President Roosevelt has directed that proceedings for contempt be taken
against the companies in the Colorado Fuel Case and the International
Harvester Case, but will not proceed against individual officers
personally in any case until the department is in possession of “legal
evidence of wilful and deliberate violation” of law on their part.
I went over the Santa Fe while these secret discriminations were in full
blast, and met President E. P. Ripley, Vice-President Paul Morton, and
other high officials, who impressed me so favorably in our talks about
rates, discriminations, etc., that I wrote in my notebook: “I believe I
have found one honest railroad in America, honest at least in intent,
whatever deviations from principle the system may force upon it.” Mr.
Spearman evidently got a similar impression, for he says: “The Santa Fe
has eliminated preferential rates entirely from its own traffic
problems; and this sturdy determination to put all shippers on a just
and equal footing, to maintain open and even rates, is the keynote of
President Ripley’s successful strategy.”[194]
Public-domain text, read in full here on John Shaqi.
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