CHAPTER X.

DENIAL OF FAIR FACILITIES.

The refusal to furnish cars in fair proportion is a familiar form of

discrimination all through this period, usually in combination with

other forms of preference. In Kansas, on the line of the St. Louis and

San Francisco Railway, were two coal companies whose plants were of

about equal capacity, and several individual shippers. The railway and

its officials became interested in one of the coal companies, and by

rebate and other process it was given rates which averaged only forty

percent of the rates charged other shippers. The result was that all the

other shippers were driven out of business, part of them being

hopelessly ruined before giving up the struggle. In addition to rate

discrimination the railway practised gross favoritism in the

distribution of cars. For example, during one period of 564 days, as was

proven in court, the road delivered to the Pittsburg Coal Company 2,371

empty cars to be loaded with coal, although such company had sale for,

and capacity to produce and load, during the same period, more than

15,000 cars. During the same time this railway company delivered to the

Rogers Coal Company, in which the railway company and C. W. Rogers, its

vice-president and general manager, were interested, no less than 15,483

coal cars, while 466 were delivered to individual shippers. In other

words, the coal company owned in large part by the railway and its

officials, was given 82 percent of all the facilities to get coal to

market, although the other shippers had much greater combined capacity

than the Rogers Coal Company.

During the last four months of the period named, and when the Pittsburg

Coal Company had the plant, force, and capacity to load thirty cars per

day, they received an average of one and one-fourth cars per day,

resulting as was intended, in the utter ruin of a prosperous business

and the involuntary sale of the property, while the railway coal

company, the railway officials, and the accommodating friends who

operated the Rogers Coal Company, made vast sums of money; and when all

other shippers had thus been driven off the line the price of coal was

advanced to the consumer.

Another railway interested in a coal mine furnished cars in abundance to

that mine and to others that would sell their product to the mining

company in which the railway was interested, but systematically failed

to furnish cars to other operators.[84] One operator, after being forced

for years in this way to sell his product to the railway mining company

at a very low price, was obliged to build a railway of his own in order

to reach other lines of railroad and so have a fighting chance for cars.

In Arkansas a coal mine owned by the Gould interests was able to ship

its product to market at very low rates, while the owners of an

adjoining mine were forced to haul their coal to the same market in

wagons because the rates charged them from the coal railway were so high

as to absorb the whole value of the coal at destination.

A big capitalist in the West got hold of great oil fields on the Pacific

slope, wonderful prospects, contracts to supply big cities, etc. Some

one told him he had better see the railroads before he made his

contracts. He thought the transportation question would be all right and

went ahead. When he got his contracts made and wanted to ship the oil,

he asked for cars, and then he found the transportation question was not

all right. He could not get the cars.

Sometimes a railroad has arbitrarily refused to haul goods to certain

consignees. A case of this kind came before the Texas Railway Commission

in the case of the Independent Compress _v._ Chicago, Rock Island and

Texas Railway Company. The Bowie Compress, located at the same station

with the Independent, had some sort of pull which caused the railroad to

refuse to haul cotton to that station unless consigned to the Bowie

Compress. The railway also allowed compression charges out of the

through rate on cotton shipped to the Bowie Compress, refused freight

from points of origin, and reshipped the cotton from the Bowie press at

through rates, while refusing such concessions to others.[85]

The refusal to deliver at a certain place may be as effective sometimes

as the refusal to deliver at all. When in 1890 Mr. Nelson Morris tried

to establish competitive stock yards in Chicago to get rid of the graft

of the Union Stock Yards owned largely by railway interests, the

Vanderbilts being in the lead, his enterprise was loudly applauded by

the stock raisers of the West; but the railroads made short work of

Morris. They simply refused to deliver to his yards the cars shipped

there. They did not recognize any such place as the Morris yards and

calmly hauled all cars to the old terminal. If Mr. Morris wanted them he

must come and get them and pay switching charges. This ruined the

venture.

Big shippers may be given an undue advantage by excessive difference

between the rates on carloads and less than carloads.[86] On June 29,

1898, the Western railroads advanced their less-than-carload rates to

the Pacific Coast to a minimum difference of 50 cents a cwt. above the

carload rate; and “on a great many commodities the difference is greater

than the profit on the goods.”[87] The Interstate Commission regards a

moderate reduction on carload shipments as fair, but will not sanction

lower rates for cargo or train-load quantities than for carloads.[88]

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 10 / 31 章