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
Bearing these facts in mind it is manifest that if an advance in
rates is made and the protest of one shipper shall operate as a stay
to the advance of a particular rate in which he may be interested the
result would be to burden thousands of other shippers who have made
no objection. The protesting shipper would thus secure an advantage,
enjoying for a time, at least, a rate relatively lower than that to
which he was entitled. It might be urged that it would be open to all
other shippers to file similar protests, but under the provisions of
the bill, or of the amendments suggested in committee, the protesting
shipper might wait until the last day of the thirty-day period, thus
giving no opportunity to other shippers, who would be ignorant of
his purpose, to file their protest. It would be possible if this
amendment became a law that many individual shippers would take
advantage of their competitors by making contracts upon the basis of
a lower rate and at the last moment file the protest, suspend the
advance rate, and deliver their product under such contracts within
the period of the suspension of the advanced rates and thus profit at
the expense of their competitors.
The effect of this amendment becomes more serious where the relation
of rates is between wide areas, and these relative rate adjustments
cannot be made simultaneously. The rates upon grain for export, from
the West to the Gulf, as compared with the Atlantic seaboard, will
illustrate this statement. The protest of one shipper between two
specific points would not only result in throwing out of relation
the rates from all points in that section, but would also affect
the competitive rates from other sections. Such a result would
necessarily render the rate situation in reference to the grain rates
"confusion worse confounded."
Rates in a country like the United States, which is comparatively
young, and the development of which attracts the attention of the
world, must, necessarily, be elastic, not only in the interest of
the carrier, but of the shipping public. The principle is sound and
has received the approval of the Interstate Commerce Commission,
that rates must be fixed with regard to their relations one with
the other, and not entirely upon the cost of service. This relation
is because of the competition between shippers, between sections
of shippers, and between localities, and as (because of the rapid
development of our country in the production of new sources of
supply, in the opening up of new grain fields, flour mills, mines,
and factories, etc.) this competition is constantly changing. It is
manifest that rates must constantly fluctuate, so as to be adjusted
to the new condition; it is essential in the development of the
country, even in the older sections, that rates must be elastic,
which means constant reductions and advances.
Public-domain text, read in full here on John Shaqi.
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