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
Discriminations between commodities, or, as they might also be called,
discriminations in classification, are probably the most common of
unjust railroad practices. For the purpose of establishing as near as
may be uniform rules in all matters pertaining to rates, the various
roads operating in a certain territory usually form traffic
associations. The general freight agents of the roads that are members
of the association in turn form a select body known as the rate
committee. These committees of freight agents have for more than twenty
years constituted the supreme authority in all matters pertaining to
freight classification. The trunk line classification recognizes six
regular and two special classes, and every article known to commerce is
placed in one of these classes. One whom Providence has not favored with
the mysterious wisdom of a general freight agent might suppose that
considerations of bulk, weight, insurance and similar factors formed a
basis of railroad classification. Nothing, however, is farther from the
truth. Freight charges, when permitted to be fixed by railroad
companies, are invariably such as the traffic will bear, and freight
classifications are arranged on this principle, provided competition by
water, rail or other land transportation does not demand a modification.
It is, as a rule, not to the advantage of a railroad to entirely starve
out any commercial or industrial concern along its line. Hence tariffs
are scarcely ever made entirely prohibitory. Railroads proceed here upon
the principle of the robber knight of mediæval times, who simply
plundered the wayfaring trader to such an extent as to reduce his
profits to a minimum. He never stripped him, for by doing so he would
have prevented his return and would have destroyed his own source of
revenue. In like manner a railroad will never annihilate any weak branch
of business along its line, nor will it, if it is in its power, permit
any business to prosper without paying to it heavy tributes out of its
profits. Every commodity is therefore made to pay a transportation tax
based chiefly on its value and the profit which it yields, and all
classifications are prepared with this object in view.
Public-domain text, read in full here on John Shaqi.
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