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
DEAR SIR,—Referring to your query relative to the remarks alleged to
have been made by me on December 31, 1904, to a reporter of the
Chicago _Daily News_, I have to say that although I do not now recall
everything that may have been said by me in conversations which were
not intended for publication, it is quite possible that I did remark
to some newspaper men that in my judgment Mr. Biddle’s personal action
in the case was entirely justifiable, and exactly what I or any other
railroad man would have done under similar circumstances. The contract
between the Railroad Company and the Fuel Company was of itself
neither unlawful nor unbusinesslike. On the other hand, it was
perfectly defensible from a legal standpoint, as well as being good
business ethics.
The fault lay with the Railroad Company’s tariff bureau, which failed
to properly publish the tariff, which should have shown that the
published rate of $4.05 per ton included the price of the coal ($1.15
per ton). There was no discrimination in favor of the Colorado Fuel
and Iron Company; in fact, discrimination was impossible, because
there was no other shipper of coal in that territory.
(_Signed_) PAUL MORTON.
There were, however, other mining companies in adjacent territory, along
the line of the Santa Fe in New Mexico, and at Gallup there were
competitors in the same field. The same day that the Commission began to
investigate the Colorado Case complaint was made about the rates from
San Antonio, N. M. San Antonio lies 150 miles north of El Paso on the
Santa Fe line from Trinidad, which is 500 miles from El Paso. The rate
paid by the Fuel Company from Trinidad was $2.90 and the rate from San
Antonio had been $1.25. “Under this adjustment of rates a coal operator
at Carthage whose product reached the iron of the Santa Fe at San
Antonio had been able to compete with the Colorado fields, and had
entered into a contract for furnishing the Mexican Central Railway
Company with its fuel. While that contract was pending the Santa Fe
advanced the freight rate from San Antonio to El Paso from $1.25 to
$1.50. By this action the operator at San Antonio was forced to give up
his contract and go out of business.”[196]
It seems clear that even our best railroads, while unwilling to
countenance graft and desiring to avoid all criminal practices, see
nothing immoral in granting whatever favors or imposing whatever
disadvantages may be deemed necessary to forward the financial interests
of the road.
Public-domain text, read in full here on John Shaqi.
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