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
Railroads can discriminate against a whole industry by advancing rates
on particular commodities above the fair level, as illustrated in the
recent advances on hay and lumber.[230]
CHAPTER XXIII.
DISCRIMINATION BY CLASSIFICATION.
The intricacies of classification afford boundless opportunity for
favoritism. Classification is always more or less arbitrary by
necessity, and is frequently more arbitrary than necessary. One industry
or wholesale trade is often charged two or three times as much as
another for the same service. The New York Railroad Commission found the
railroads charging twice as much on dry goods as on coffee or sugar and
protested against the rule as utterly indefensible, but the railroads
refused to comply with the request for a change. Iron and coal cost less
to transport than grain, yet the ton-mile rates on iron and coal from
Pittsburg have been at times for years together from 2 to 5 times the
rates on grain from New York to Chicago.
In 1890 the Interstate Commerce Commission ordered the railroads to
transfer soap from the 5th to the 6th class. In 1900 the railroads
changed it back to 5th class in carload lots, and from 4th to 3d class
in less-than-carload lots, but if shipped in mixed lots with dressed
beef it goes as 5th class. So that Armour, Swift & Co., of the Beef
Trust, have been able to ship soap in less-than-carload lots at much
lower rates than their competitors.[231] The Commission ordered the
roads to cease their excessive discrimination on less than carload lots,
etc. The roads refused to obey. The Circuit Court has sustained the
order of the Commission.
Under the Illinois Central tariffs at one time it made a difference of
$40 a car if a man shipped a peck of potatoes in a car of 16,000 lbs. of
strawberries. If there were no potatoes in the car so that it was not a
mixed load, it cost $40 more than if there were a peck of potatoes in
with the strawberries.[232]
The classification of castor oil on the Lake routes affords a curious
example of the freaks of tariff classing. Vegetable castor oil is 5th
class, or 16½ cents a hundred, from Cleveland to Chicago, while mineral
castor oil takes a rate of 25 cents a hundred.[233]
The law has not yet definitely touched the favoring of large shippers by
excessive difference in the rates on carloads and less than carloads.
There is not more than 5 percent difference in the cost of transporting
goods in carload lots and less-than-carload lots, and yet the rates vary
from 30 to 80 percent, as a rule, and sometimes 150 percent.[234]
Public-domain text, read in full here on John Shaqi.
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