CHAPTER XXII.

COMMODITY DISCRIMINATIONS.

Unfair discriminations in respect to special commodities are very

common. The New Haven and Hartford charges $80 a car on peaches from New

York to Boston, 228 miles, while the same peaches come from Georgia

points to New York, 1150 miles, for $162 a car. The Commission says the

$80 rate is arbitrary and unjust and that $50 a car would be a

reasonable charge.[217]

The Atlantic Coast Line Railroad made its rate on peaches depend on the

valuation put on the fruit, in order that by increase of rate in

proportion to valuation, shippers might be led to put low valuation on

their shipments and so provide the railways with an argument against

paying the real damages in case of accident or loss.[218]

From some places shingles are carried at rates as low as those applied

to lumber, while shingle shippers at other points pay more than the

lumber rates. This is held an unjust discrimination against shingles,

and against the places and shippers that pay the high rates.[219]

Railroads make high rates on ties, higher than on lumber, in order to

prevent their shipment to other parts of the country, and so diminish

their value and lower their cost to the discriminating railroad. The

president of one railroad stated the policy clearly: “We are simply

following what we consider our interest, which is to prevent the

shipment of tie lumber.”[220]

Early this year, 1905, the South Side Elevated road of Chicago wanted

400 carloads of ties. The blanket rate on ties from the entire yellow

pine belt to Chicago is 26 cents per hundred lbs. On shipments

originating between Luzon, La., and Pearl, Miss., the Illinois Central

made a special tariff (March 22 and April 6, 1905), fixing the rate on

ties at 26 cents per tie, each tie to be billed at 130 lbs. This was

equivalent to a reduction of the rate to 20 cents per hundred lbs., and

no shipper outside of the favored region could compete in the Chicago

market. It is suspected that the party who got the Elevated contract

knew beforehand that the railroad would issue this special tariff, and

was therefore able to underbid competitors in perfect safety.[221]

A rate of 90 cents a ton is charged on coal for a special use such as

railroad supply, while the same coal must pay $1.85 between the same

points if intended for manufacturing or other industrial domestic

use.[222]

It is unjust discrimination to charge more for carrying cattle and hogs

than for carrying packing-house products, and the desire of the carrier

to get more business by so doing is no excuse.[223]

The railroads have carried dressed meats from Omaha to Chicago at 18½

cents, while charging 23½ cents on live-stock from Iowa points nearer

Chicago. The packer could buy the cattle at Fort Dodge, Iowa, ship them

to Omaha, kill them and ship the dressed carcasses to Chicago, cheaper

than the live-stock owner at Fort Dodge could ship the cattle to

Chicago. Some years ago on arbitration, Mr. Fink and Judge Cooley being

the arbitrators, it was decided that the fair ratio between live-stock

and dressed meats from Chicago to New York would be 26 cents per hundred

for live cattle, and 45 cents for the dressed carcass. But the railroads

have reversed this relation, although the Interstate Commerce Commission

has decided that the rate on dressed meats should be higher than on

live-stock.[224]

Recently, January 1905,[225] the Commission has reaffirmed its decision

of 1890 and held that it is unlawful to charge more for transporting

live-stock from Missouri River points and St. Paul to Chicago than for

carrying packing-house products between the same points, but the Beef

Trust cares nothing for the opinions of Judge Cooley nor for the orders

of the Interstate Commerce Commission, and the Trust controls the

railroads.

On shipments from Chicago east to New York the rates are 28 cents per

hundred and 45 cents on dressed beef. Formerly the same rule applied in

the West, but when the Beef Trust began to build up great packing-houses

at Omaha, Kansas City, and St. Paul, they wanted to make the rates on

cattle from the West to Chicago higher than the rates on beef, so as to

force live-stock to come to their stockyards on the Missouri River where

they had a practically absolute monopoly, and the railroads obeyed their

behest. Shippers fought the change, and in 1890 the Interstate

Commission ordered the railroads to desist from charging more for

live-stock products than for packing-house products. The railroads did

not dare to raise Armour’s rate on dressed beef, so they reduced the

live-stock rate to 23½ cents, the same as the rate for dressed meats.

Armour then demanded and received a rebate of 5 to 8 cents a hundred

lbs. on packing-house products. The rebate was secret at first, but

after the Elkins Bill was passed the beef men made a contract with the

Great Western road at the rate of 18½ cents and the rate was published.

The cattle rate remained at 23½ cents so that Armour and his railroad

allies were again in open defiance of the orders of the United States

Government issued through its Interstate Commerce Commission. The new

decision of the Commission, January, 1905, requiring the railroads to

charge more for live-stock than for live-stock products has not been

obeyed and is not likely to be.[226]

“Could anything more clearly show the power of the Trust,” says Mr.

Baker, “than this reversal of the order of rate-making as manifested in

the tariffs east of Chicago, so that beef, the high-priced product, is

shipped at 18½ cents, while cattle, the low-priced product, is shipped

at 23½ cents, simply to enable the Trust to close the Chicago market—the

best market in the country for export cattle—to thousands of western

cattle growers? They cannot afford to ship live-stock to Chicago at 23½

cents when the Trust can ship the products of the same cattle, weighing

only 60 or 70 percent as much as the live animal, at 18½ cents. They are

therefore compelled to ship to Missouri River points where the Beef

Trust is in absolute control.”

A rate of $1.25 per hundred lbs. on oranges from California to points on

and east of the Missouri River, while lemons are carried for $1 to the

same points—is held unreasonable.[227] A higher charge on rye and barley

than on wheat is unjust.[228]

Western millers complain that the discrimination between flour and wheat

on shipments to the East is causing them much injury and will put them

out of business. The Commission decided that the difference should not

exceed 2 cents a hundred, but it has no power to enforce its order and

“frequently for considerable periods there is very great discrimination

between the rates on flour and the rates on wheat.”[229]

Railroads can discriminate against a whole industry by advancing rates

on particular commodities above the fair level, as illustrated in the

recent advances on hay and lumber.[230]

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 22 / 31 章