The United States Since the Civil WarLingley, Charles Ramsdell
History
The United States Since the Civil War
Lingley, Charles Ramsdell
United States -- History -- 1865-1921
The most constant grievance was discrimination--that the roads varied
their rates for the benefit or detriment of especial types of freight,
of individuals and of entire localities. Through business between
competing points was carried at a low figure, while the roads recouped
themselves by charging heavily in towns where competition was absent.
Shippers complained that rates between St. Paul and Chicago, for
example, where competition existed were hardly more than half the
charges to places at a similar distance where a single road was in a
position to demand what it pleased. Manufacturers in Rochester could
send goods to New York City and reship them to Cincinnati, back
through Rochester, for less than the rate direct to their destination.
Yet the direct haul was seven hundred miles shorter than the indirect.
Secret arrangements were commonly made with favored shippers by which
they secured lower rates than their competitors. When it became
evident that transportation cost entered into the price of
substantially everything which the ordinary citizen consumed, and when
it was considered that a slight rise in railroad rates might easily
amount to a heavy tax on a shipper or an entire region, it was seen
that uniformity of rates was a matter of the utmost concern.
In brief, then, it was complained that the growth of the
transportation system had placed enormous power in the hands of a
small group of men, many of whom had indicated by their selfishness,
arrogance and questionable practices that they ought not to be
entrusted with so great a measure of authority.
Public-domain text, read in full here on John Shaqi.
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