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
On shipments from Chicago east to New York the rates are 28 cents per
hundred and 45 cents on dressed beef. Formerly the same rule applied in
the West, but when the Beef Trust began to build up great packing-houses
at Omaha, Kansas City, and St. Paul, they wanted to make the rates on
cattle from the West to Chicago higher than the rates on beef, so as to
force live-stock to come to their stockyards on the Missouri River where
they had a practically absolute monopoly, and the railroads obeyed their
behest. Shippers fought the change, and in 1890 the Interstate
Commission ordered the railroads to desist from charging more for
live-stock products than for packing-house products. The railroads did
not dare to raise Armour’s rate on dressed beef, so they reduced the
live-stock rate to 23½ cents, the same as the rate for dressed meats.
Armour then demanded and received a rebate of 5 to 8 cents a hundred
lbs. on packing-house products. The rebate was secret at first, but
after the Elkins Bill was passed the beef men made a contract with the
Great Western road at the rate of 18½ cents and the rate was published.
The cattle rate remained at 23½ cents so that Armour and his railroad
allies were again in open defiance of the orders of the United States
Government issued through its Interstate Commerce Commission. The new
decision of the Commission, January, 1905, requiring the railroads to
charge more for live-stock than for live-stock products has not been
obeyed and is not likely to be.[226]
“Could anything more clearly show the power of the Trust,” says Mr.
Baker, “than this reversal of the order of rate-making as manifested in
the tariffs east of Chicago, so that beef, the high-priced product, is
shipped at 18½ cents, while cattle, the low-priced product, is shipped
at 23½ cents, simply to enable the Trust to close the Chicago market—the
best market in the country for export cattle—to thousands of western
cattle growers? They cannot afford to ship live-stock to Chicago at 23½
cents when the Trust can ship the products of the same cattle, weighing
only 60 or 70 percent as much as the live animal, at 18½ cents. They are
therefore compelled to ship to Missouri River points where the Beef
Trust is in absolute control.”
A rate of $1.25 per hundred lbs. on oranges from California to points on
and east of the Missouri River, while lemons are carried for $1 to the
same points—is held unreasonable.[227] A higher charge on rye and barley
than on wheat is unjust.[228]
Western millers complain that the discrimination between flour and wheat
on shipments to the East is causing them much injury and will put them
out of business. The Commission decided that the difference should not
exceed 2 cents a hundred, but it has no power to enforce its order and
“frequently for considerable periods there is very great discrimination
between the rates on flour and the rates on wheat.”[229]
Public-domain text, read in full here on John Shaqi.
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