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
We must remember in considering this question that the majority
of advances have resulted from the practice of the roads in the
reduction of rates to meet certain commercial and economic conditions
at the time, which have usually been the result of appeals from
shippers and suggestions from commercial organizations.
We desire to direct attention to the statement filed before the
Committee on Interstate and Foreign Commerce upon a similar bill to
this by the chairman of the committee of the Southwestern Traffic
Association, which is as follows:
"A very small percentage of the changes in freight rates,
either reductions or advances, is evolved by railroad
officials. Practically every change in rates is the result of
suggestion from one or more shippers, who find that by some
modification in the existing schedules their business in a
certain territory can be increased by enabling them to meet
competition which they encounter from other sources of supply,
which are in most cases served by rival railroads. Their
representation is that by the proposed change their profit
or business will be increased, and consequently the railroad
serving them will share in an augmented traffic which, at the
time of the suggestion, is being handled by the rival shipper
and carrier.
"Ninety or more per cent. of these suggestions are for
reductions in rates or for changes in rules and regulations
beneficial to shippers and classed as reductions. The railroad
company is anxious at all times to increase its traffic and
gives a keen ear to such pleas of the shipper. The railroad
official to whom such requests are made carefully investigates
the conditions recited by the shipper and, by correspondence
with such railroad's representatives at the points of origin
and destination, confirms, if possible, the views of the
shipper and the effect of the proposed change on the tonnage
and revenue of the company. The traffic official of the
railroad thus being daily engaged in investigations of this
kind becomes very proficient in his knowledge of the factors
surrounding the movement of the principal articles of commerce
and becomes, after experience, a ready judge of the merit of
such propositions. When thus convinced, he becomes the agent of
the shipper in securing the proposed adjustment. This may take
the form of suggesting to a rival railroad that the advantage
which its shippers have enjoyed is unjust and that he should be
permitted, without any corresponding reduction on the part of
such rival railroad, to reduce his rate that the complaining
shipper may profitably secure an increased share of the
competitive traffic in question. Being unable to thus persuade
the competing railroad of the merits of such a contention he
is forced to proceed by reducing his own rate without regard
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