The New NationPaxson, Frederic L. (Frederic Logan)
History
The New Nation
Paxson, Frederic L. (Frederic Logan)
United States -- History -- 1865-1921
In the new epoch of the sixties there were only new fields to conquer.
The great enterprises were forced to speculate upon the development of
the public domain and to find their profits in the business of
communities to which they themselves gave birth. Natural waterways and
roads extended little west of Chicago. The new fields were entered by
the railroads without prospect of any competition but that of other
railroads. The resulting communities, born and developed between 1857
and 1873, were peculiarly the creatures of, and dependent on, the
railway lines.
This inevitable dependence on railways colored the history of Wisconsin,
Iowa, and Minnesota, and, to a lesser degree, of all the West. While men
were yet prosperous and sanguine and without adequate railway service,
they offered high inducements to promoters of railways. Once the roads
were built and the communities began to pay for them and to maintain
them, the dependence was realized and anti-railway agitation began. The
fact that they were commonly built on money borrowed from the East
threw debtors and creditors into sectional classes injurious to both.
The antagonism to railways was increased because these yet regarded
their trade as private, to be conducted in secrecy, with transportation
to be sold at the best rates that could be got from the individual
customer. The big shipper got the wholesale rate; the small shipper paid
the maximum. Favoritism, discrimination, rebates, were the life of
railway trade, and railway managers objected to them only because they
endangered profits, not because they felt any obligation to maintain
uniformity in charges.
In a community as dependent on the railways as the Northwest was, the
iniquity of discriminatory or extortionate rates was soon seen. The
East, with rival routes and less dependence on staple interests, saw it
less clearly. The charges were paid grumblingly in good times; in bad
times, when the rising greenbacks squeezed the debtor West and the panic
of 1873 stopped business everywhere, the farmers soon made common cause.
They seized upon the skeleton organization of the grange and gave it
life. In 1874 their organized discontent compelled attention.
The Granger Laws were an attempt to establish a new legal doctrine that
railways are quasi-public because of the nature of the service which
they render and the privileges they enjoy. This principle was overlaid
in many cases by the human desire to punish the railroads as the cause
of economic distress, but it was visible in all the laws. It is an old
rule of the common law that the ferryman, the baker, and the innkeeper
are subject to public control, and railways were now classified with
these. In Wisconsin, the "Potter" Law established a schedule with
classified rates, superseding all rate-cards of railroads in that State.
Illinois created a railroad and warehouse commission with power to fix
rates and annul warehouse charters. In Iowa the maximum rates were fixed
by law.
Public-domain text, read in full here on John Shaqi.
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