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 principle of charging what the traffic will bear is well illustrated
by the relative rates on patent medicines and ale and beer, as
maintained by the Official Classification.
In a complaint made by a prominent manufacturer of proprietary medicines
against the New York Central and other roads, it was shown that the
complainant's products were shipped at owner's risk, and that they were
in bulk and intrinsic value similar to ale and beer, but that in spite
of these analogies the former were rated as first-class and the latter
as third-class goods, simply because they retailed at a higher price.
Another unwarrantable discrimination is that in favor of live stock and
against dressed beef. While Mr. Fink, the commissioner of the Trunk Line
Pool, himself admitted that the cost of carrying dressed beef from
Chicago to New York was only 6-1/4 cents per 100 pounds in excess of
the cost of hauling live stock, the trunk lines maintained on dressed
beef a rate 75 per cent. higher than that on live cattle. The railroad
companies asserted that this was due to those people in the East whose
living depended on the live-stock interest. The railroads have in this
assumed a paternalism which would not be tolerated even in the
Government. To protect the East, railroads will not permit the West to
engage in new industries.
The position which the Interstate Commerce Commission has assumed in
interpreting the rights of shippers under the law which railroad
companies are bound to respect in the preparation of their tariff sheets
and classifications cannot but be most gratifying to the people. In a
decision relating to the classification and rates for car-loads and less
than car-loads, filed March 14, 1890, the commission laid down the
following rules for the guidance of railroad companies:
"1. Classification of freight for transportation purposes is
in terms recognized by the act to regulate commerce, and is
therefore lawful. It is also a valuable convenience both to
shippers and carriers.
"2. A classification of freight designating different
classes for car-load quantities and for less than car-load
quantities for transportation at a lower rate in car-loads
than in less than car-loads is not in contravention of the
act to regulate commerce. The circumstances and conditions
of the transportation in respect to the work done by the
carrier and the revenue earned are dissimilar, and may
justify a reasonable difference in rate. The public
interests are subserved by car-load classification of
property that, on account of the volume transported to reach
markets or supply the demands of trade throughout the
country, legitimately or usually moves in such quantities.
Public-domain text, read in full here on John Shaqi.
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