The Railway Library, 1909: A Collection of Noteworthy Chapters, Addresses, and Papers Relating to Railways, Mostly Published During the Year
History
The Railway Library, 1909: A Collection of Noteworthy Chapters, Addresses, and Papers Relating to Railways, Mostly Published During the Year
Railroads -- United States -- Periodicals
Nobody regarded these secret rates as criminal or objectionable. But
as time passed and these discriminations became more frequent and
greater there arose a demand from the less favored portion of the
shipping community for legislation forbidding the discrimination and
providing for like opportunity for all. This was strenuously opposed
by the favored shippers and by those railroad men who believed the
railroad to be purely a private institution and not amenable to law
as to its charges. It was common enough to hear it seriously argued
that the larger shipper was entitled to the lower rate--this view
was held by many shippers and, I believe, by most railroad managers.
They argued that the business was like any other business--that each
interest must look out for itself, and that competition between the
roads would prevent rates from ever being too high.
For myself I may say that I realized from an early period that
discrimination as to rates was unjust and at no time objected to laws
forbidding it.
The interstate commerce law was passed in 1887. It was crude in its
provisions and was the result of compromises between radicals and
conservatives; it sought both to foster competition and to abolish
it, and in that respect remains still contradictory and impossible.
Upon the passage of the law, that which had been looked upon as
perfectly proper and as the working of natural competitive forces
became illegal and criminal. The railroads generally accepted
the law and made an honest effort to observe it--the mercantile
community did not--indeed, they openly defied it, soliciting rebates
unblushingly and threatening with the loss of their tonnage those
roads who would not succumb. The Interstate Commission, new to its
duties, contented itself with comparatively unimportant decisions and
practically did nothing to help those railroads who desired honestly
to carry out the provisions of the law; and, as a result, within a
year of the passage of the law it was quite generally disregarded.
A few railroad men were fined, a few shippers convicted--and almost
immediately pardoned--and the law fell into disrepute, a condition
disgraceful alike to the government, the shippers and the railroads
and especially distasteful to the latter, but exactly what was to be
expected.
The result was the passage of the so-called Elkins bill, and later
the Hepburn bill, which, while amateurish and in many ways vicious,
have effectually stopped the rebate system--a result for which we may
all be thankful.
Public-domain text, read in full here on John Shaqi.
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