CHAPTER 27

THE RAILROAD PROBLEM

REFERENCES.

_Brown, H. G._, The competition of transportation companies. A. E. Rev., 4: 771-792. 1914.

_Brown, H. G._, Transportation rates and their regulation. 1916.

_Clark, J. M._, Some neglected phases of rate regulation. A. E. Rev., 4: 565-574. 1914.

_Dixon, F. H._, The Mann-Elkins Act, amending the act to regulate commerce. Q. J. E., 24: 593-633. 1909-1910.

_Dunn, S. O._, Railway discrimination. J. P. E., 20: 437-461. 1912.

_Gephart, W. F._, The place of the canal in a national system of transportation. A. E. Assn. Bul., 4th ser., 1 (no 2): 188-196. 1911. Round table discussion, 197-203.

_Hadley, A. T._, Railroad transportation. 1884.

_Hammond, M. B._, Railway rate theories of the interstate commerce commission. Q. J. E., 25: 1-66, 279-336, 471-538. 1909-1910.

_Johnson, E. R._, American railway transportation. 3d ed., 1908.

_Johnson, E. R._, Inland waterway policy. A. E. Assn. Bul., 4th ser., 1: 166-174. 1911.

_Johnson, E. R._, The principles of governmental regulation of railways. P. S. Q., 15: 37-49. 1900.

_McFall, R. J._, Railway monopoly and rate regulation. 1916.

_Materials_, 627, 628.

_Meyer, B. H._, Certain considerations in railway rate making. A. E. Rev., 4 (no. 1, supp.): 69-80. 1914. Round table discussion of above, 81-100.

_Prouty, C. A._, Railway discriminations and industrial combinations. A. A. A., 15: 41-50. 1900.

_Ripley, W. Z._, (Ed.), Railway problems. 1907.

_Ripley, W. Z._, Railroads: rates and regulation. 1912.

_Ripley, W. Z._, Railroad overcapitalization. Q. J. E., 28: 601-629. 1913-1914.

_Ripley, W. Z._, Railroads: finance and organization. 1915.

*_Source Book_, 361-367, 368-378, 379-382.

QUESTIONS.

1. Why is transportation a greater problem in the United States than in Europe?

2. Show in what way natural waterways have determined the location of leading cities in America.

3. Give examples of cities whose growth has been caused by railroads.

4. Upon what considerations are commodities classified for shipment by railroads? Is classification unfair discrimination? Illustrate by an example.

5. What classes of interests are affected by increasing the minimum weight for carloads? Explain in each case whether the effect is favorable or unfavorable and the reasons therefor.

6. Does cost of service have anything to do with the rates charged by railroads?

7. Give an example of a blanket rate territory and the reasons therefor.

8. What is the "long and short haul" clause of the Interstate Commerce Act? Explain why railroads make rates which contravene the terms of this clause, and why the government should forbid the railroads to make such rates.

9. A railroad connecting two competitive points charges one-fourth of a cent per ton mile on grain shipments from its inland terminus, while it charges one cent per ton mile on grain shipments from non-competitive territory. What considerations have probably led to the establishment of the above rates?

Might not the railroad increase its net revenue by raising the rate on through traffic to one-half cent per ton mile and lowering the local rate to three-fourths of a cent per ton mile?

10. The rate on corn in carload lots from Omaha, Neb. to Newport News, Va. is 10 cents per hundred pounds. From the Omaha region there are competing carriers to the Gulf and other Atlantic ports. The rate on corn in carload lots from points in Virginia to Newport News over the same route is 12 cents per hundred pounds. Could not the local rates be lowered if the carriers advanced the rates on the long-distance haul?

11. What cases have you seen where the railroads impose unjustly on the public?

12. Give instances you have seen or heard of where two shippers paid different rates for the same service.

13. Do you know any large cities that are more favorable shipping points than neighboring towns?

14. What legal rights do the builders of a railroad have that are not enjoyed by all citizens?

15. Can you see any clear distinction between the public nature of a railroad and that of a horse and carriage?

16. What harm can there be in the acceptance of passes by judges, legislators, and other public officials?

17. Ought the law prohibit the sale of tickets by "scalpers"?

18. If your neighbor rides on a pass and you pay your fare, are you helping to pay for his ride?

19. Why should preachers get half-fare rates?

20. What are the chief reasons for the governmental regulation of railways?

21. Why does the question of the control of the railways in the interest of the public present especial difficulties in America?