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
Q. And he ought to pay 20, as against 13? A. Yes, sir.
Q. That small man has no right to develop? A. He has the same chance
that the other man has.
Q. At 20 against 13? A. Oh, yes.
Q. Do you call that the same chance? A. About the same chance, yes, sir.
Q. You consider it the same chance? A. Yes, sir.
Many reasons were assigned by railroad men in justification of their
practices. It was claimed that special rates were given to regular
shippers, but it has been proved that not all regular shippers had
special rates, and that persons who made only single shipments were
often fortunate enough to obtain special favors. It was further claimed
that special rates were given to those who, starting out new in business
or developing new enterprises, needed aid and encouragement. But it was
shown on the other hand that the aid and encouragement thus given to
some bankrupted others, and in the end deprived the companies of more
business than their policy of discrimination brought them. Railroad
managers also argued that they could afford to make lower rates on large
shipments than on small ones for the same reasons that the wholesale
merchant can sell his goods for less than the retailer. But while this
may be a good reason why rates on car-load shipments should be lower
than rates on shipments in less than car-load lots, it is certainly no
good reason why five car-loads belonging to one shipper should be
transported the same distance for less than five carloads belonging to
five shippers. In the case of local shipments the car is scarcely ever
loaded to its full capacity; one shipment after another is taken from it
as the train moves along, and the car perhaps reaches its final
destination nearly, if not entirely, empty. The terminal charges are
here also largely increased, and it is but just that the shipper should
pay the additional cost of carrying and handling the goods. The case is
entirely different when the railroad company carries five full carloads
from one station of its line to another. Whether they have been loaded
by one or five persons, whether they are consigned to one or five
persons, matters little to the railroad company. It merely transports
the cars, and in either case its responsibility and its services are the
same. The car-load must therefore be accepted and is now generally
accepted by the best railroad men as the unit of wholesale shipments,
and any discrimination made in favor of large wholesale shippers is
arbitrary and unjust. In the shipment of some commodities, such as
wheat, flour and coal, a small advantage in rates is sufficient to
enable the favored shipper to "freeze out" all competitors. It is
certainly not to the interest of any railroad company to pursue such a
policy; for by driving small establishments out of the business it
encourages monopoly, which almost invariably enhances prices and
decreases consumption. The railroad thus suffers in common with the
public the consequences of its short-sighted policy.
Public-domain text, read in full here on John Shaqi.
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