The Railroad Question: A historical and practical treatise on railroads, and remedies for their abusesLarrabee, William
History
The Railroad Question: A historical and practical treatise on railroads, and remedies for their abuses
Larrabee, William
Railroads; Railroads -- United States; Railroads and state -- United States
The abuses of which the people of Iowa complained were far from being
confined to their State. They were practiced throughout the Northwest,
and the demand for reform was as loud in Minnesota, Wisconsin and
Illinois as it was in Iowa. In 1871 laws were passed in Illinois and
Minnesota fixing maximum charges for the transportation of freight and
passengers and prohibiting discriminations. The railroads claimed that a
State did not have the right to prescribe rates and refused to be bound
by these laws. Instead of modifying their policy, they became daily more
arrogant. Discriminations which had before been practiced under the veil
of secrecy, or which had been defended by railroad managers as
exceptions to the general rule made necessary by a peculiar combination
of circumstances wholly beyond their control, were now openly and
defiantly practiced by several of the larger roads. The Chicago,
Milwaukee and St. Paul Railroad Company, in its effort to annihilate a
rival, went so far as to openly announce to the public its intention to
entirely disregard distance as a factor in rate-making. It gradually
became the general rule to wage war against rivals at competitive
points and to "recoup" by charging excessive rates at non-competitive
points. Every encouragement was thus given by the railroads to the
Granger movement, which spread in less than two years over the whole
Northwest.
In the fall of 1873 Iowa elected a Granger legislature, like Minnesota,
Wisconsin and Illinois. The wildest predictions were made by railroad
men as to the extremes to which the Granger legislature would go, but it
confined itself to enacting a law establishing an official
classification and fixing maximum rates for all railroad companies. The
law was approved March 23, 1874, and went into effect on the 4th of July
following. This law in no case compelled companies to carry freight at a
lower rate than they had voluntarily carried it in the past. Many of the
rates in force at the time of the passage of the act were considerably
lower than the corresponding maximum rates fixed by the legislature. The
average rates fixed by the law were higher than the rates at which the
railroads had previously carried a large portion of corresponding
freight. The revenues of the road were not even curtailed by this law;
on the contrary, by equalizing rates, _i. e._, by leveling up the rates
given to favored places and favored individuals and leveling down the
exorbitant rates exacted from the public at non-competitive points, the
railroad companies were enabled to effect an increase in their total
revenue.
Public-domain text, read in full here on John Shaqi.
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