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
Discriminative rates are made oftentimes without any intent to prefer
one shipper to another, but simply to make things move. For example, a
business man of Greensboro, N. C., wanted to build a smoke-stack of New
Jersey brick, but the rates from New Jersey were too high. “A quotation
was made me by the stack builder, whose office is in New York, and I
remarked to him, ‘That price is prohibitive; I cannot pay that price for
that stack.’ He said, ‘That is the best I can do; but if you will tell
me what you can afford to pay for that stack in competition with
home-burned brick, I will see what I can do with the railroad people.’
He wanted to know how soon it would be necessary for him to give me a
reply, and I said, ‘I want to know within ten days.’ He said, ‘All
right; I will take it up with the railroad people.’ His quotation
included the delivery of the brick and the erection of the stack at my
plant. It would require something like 50 carloads of brick to build
that stack. Within a week he had his price revised, and gave me a
satisfactory quotation and took my contract for the stack.”[238]
The railroads, having regard to what the traffic would bear, gave the
builder a special rate in order that the New Jersey brick might move
over their lines to North Carolina.
CHAPTER XXIV.
VARIOUS OTHER METHODS.
Railroads are in the habit of giving special rates on stuff sent over
their lines for other roads. “It is done,” says one of the leading
traffic managers of the country, “on everything that is
handled,—supplies, coal, and material.”[239] This enables any one who
stands in with the management of a railroad to have coal, etc., billed
at low rates to the railroad for him.
The routing of freight is the source of a double discrimination.
Connecting lines in some cases pay shippers to route the goods over
their roads, while in other cases the connecting lines pay the rebates
to the originating line, or make an agreement with it for reciprocal
favors in the routing of freight.[240] Shippers receiving rebates from a
connecting line can afford to pay the originating road or its clerks to
route the goods over the said connecting line. Mr. Morawetz says it is
customary for shippers to pay clerks in the routing department $5 or $10
to route the goods the way the shipper desires. Or it is done by giving
theatre parties or presents to wives and daughters.[241]
In the California Orange Routing Case (132 Fed. Rep. 829) the United
States Circuit Court decided that an agreement between railroads as to
routing, whereby the apportionment of freight to connecting roads is
affected, is in the nature of a traffic pool and comes within the
prohibition of pooling, Section 5, of the Interstate Act.
Public-domain text, read in full here on John Shaqi.
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