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
In a recent St. Louis case it appears that the railroads were paying 5
cents a hundred to transfer companies for carting goods across the river
from East St. Louis to the depots in St. Louis. They paid the same
amount to the Grant Chemical Company for hauling their own goods across
the river and also to the make-believe transfer company of the Simmons
Hardware Company, the traffic manager of which organized the company’s
own teams into a little transfer company on purpose to get 5 cents per
hundred from the railroads. Other shippers were refused the 5 cent
teaming allowance. The Interstate Commission held that the payments to
the Chemical Company and the burlesque Simmons transfer company were
unlawful rebates.[201]
Traffic within a State not subject to the Interstate Commerce Act is
carried at low rates for favored shippers. Sometimes the shipper pays
the full interstate rates in consideration of receiving preferences on
shipments within the State to which the Interstate Act does not apply.
Allowances and advantages are accorded in handling and storing.
Commissions are paid, and goods are billed at less than actual weight.
And goods are shipped under false classification or to a false name
under the “straw man” system. This system is thus described by Mr.
Gallagher, representative of the Merchants’ Exchange of St. Louis:
“Instead of billing that stuff to the man I have sold it to I bill it to
a fictitious man, or straw man. On the bills he is the actual shipper. I
do not see him at all, don’t know anything about him, but he bills the
stuff to the man that I want it to go to, my customer, and it will go
through all right, and by and by the straw man sends me a check for a
rebate. You cannot find him; at least, I have not been able to do it.
That was also described to me by a man who practices it.”[202] Some
shippers are allowed to let carloads lie 15 days without demurrage,
while others have to pay for the car service they get.[203] In the West
I found many instances of this. In Butte, for example, one mining
company does not have to pay any demurrage, while other companies are
charged with demurrage.
Railway purchasing agents are instructed to buy supplies from parties
who are large shippers, and these agents buy at prices which afford such
shippers all the benefits they would get from a rebate on the freight
rates.[204] This is, in fact, only another way of paying rebates. The
allowance of fictitious claims is still in vogue.[205]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account