CHAPTER IV.

FREIGHT DISCRIMINATION.

We come now to a kind of discrimination that enables a railway manager

to determine which of the merchants, manufacturers, mine owners, etc.,

on his line shall prosper and which shall not; what cities and towns

shall grow, what States shall thrive, what industries shall be

developed.

The purpose of discrimination may be (1) to keep business from going to

a competing line; (2) to increase revenue by creating new business for

which, if necessary, rates may be dropped very low, as anything above

the cost of handling on new business will add to income; (3) to simplify

and solidify traffic; (4) to favor persons who, through political

influence or other power may aid or injure the road, or who, through

friendship, marriage, business or civic relation, or otherwise, have a

“pull” with the management; (5) to advance the interests or enhance the

value of a business, or property, or place, in which the railway or its

officers or their friends are interested; or (6) to kill or injure a

place or person or business that has incurred the enmity of the railways

or their allies.

As a result of the play of these motives our railroad history is full of

unfair discriminations between persons, places, and industries in the

United States, and between domestic and foreign trade. The methods and

forms are many and have grown more numerous with each succeeding epoch,

but the predominant forms vary in the different strata. We still have

plenty of living specimens of the species that prevailed in earlier

periods, but the leading forms now are comparatively recent evolutions.

The history of discriminations would fill many volumes. The Hepburn

Committee (1879) appointed by the New York Legislature collected about

5000 cases of discrimination. It was shown to be a common thing for

railroads to give favored shippers discounts of 50, 60, 70, and even 80

percent from the regular rates. The special contracts involving favors

in force for one year on a single railroad, the New York Central, were

estimated at 6000. The United States Senate Committee of 1885, the

Congressional Committee of 1888, the Interstate Commerce Commission,

1887–1905, the United States Industrial Commission, 1900–1902, the

Wisconsin investigation in the fall of 1903, the United States Senate

Committee of 1905, the State railroad commissions, the courts, and other

investigating bodies have brought to light additional thousands of

discriminations. We shall select some examples illustrating various

methods of discrimination.

The heart of the railroad problem The history of railway discrimination in the United States, the chief efforts at control and the remedies proposed, with hints from other countries · 第 4 / 31 章