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
Abuse of the “rebilling privilege” or the “expense bill system” is still
in full bloom. Rebilling properly relates to the reshipment of goods
received in unbroken carload lots, so as to make them complete a
continuous trip at the through rate from the point of origin to final
destination. But it appears from a case passed upon this year, 1905, by
the Supreme Court of Mississippi, that merchants in Vicksburg receiving
freight over the Vicksburg, Shreveport and Pacific Railroad are allowed
to use their “expense bills,” showing the amount of freight received
over that line, in a way that enables them to get reduced rates. Within
90 days of the date of any expense bill the holder can ship out over
that road an equal quantity of freight not necessarily the same he had
received, but anything he chooses. By this means the Vicksburg merchants
can get grain by barge and ship it out at 3½ cents, while the merchants
of Meridian have to pay 10 cents on similar shipments, and the low rate
was not available either for merchants in Vicksburg who did not deal
with the said specially favored associated line having the through
rate.[206]
In a still more recent investigation (July 1905) by the Interstate
Commission at Louisville, Ky., it appears that on presentation of an
expense bill for each car of grain from St. Louis at any time within the
preceding 90 days, the Louisville dealer may ship an equal amount of
grain on to Atlanta at a rate 3 cents per hundred below the tariff from
Louisville to Atlanta. One day during the hearing 67 expense bills were
presented in evidence, some of which had been altered and the rest
duplicated and even triplicated with the result of giving the guilty
shippers an unlawful advantage of 3 cents a hundred over their
competitors selling grain in the southeastern territory. Many of these
bills were admitted to be forgeries from beginning to end, while others
were altered by erasing the original words and writing in others. For
example, wheat was sent as bricks by erasing the word “bricks” on an
incoming bill, writing in the word “wheat” and using the altered bill to
forward a car of wheat at the expense bill discount. Every one of the
bills in the bunch we are speaking of was in favor of a single
Louisville firm which does an immense business in the Southeast.
In other cases goods are not billed right. Dealers have been known to
ship cutlery as iron bolts, and dynamite as dried apples. False billing
as to weight is practised both in freight and express shipments. The
carrier acts in collusion with the shipper in some cases while at other
times the carrier is among the defrauded.
Sometimes large amounts of freight are sent without being billed at all.
“I know of a point,” said Mr. Davies of Chicago, representing 70 fruit
associations of that city, “where 150 cases of strawberries were
systematically loaded on a car upon which there was never any freight
paid, and the rate was 21½ cents a crate.”
Public-domain text, read in full here on John Shaqi.
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