CHAPTER XI

SPECIAL RATE PROBLEMS: THE SOUTHERN BASING POINT SYSTEM; TRANSCONTINENTAL RATES; PORT DIFFERENTIALS, ETC.

Contrast between the basing point and trunk line systems, 380.--Natural causes in southern territory, 381.--Economic dependence, 381.--Wide-spread water competition, 382.--High level of rates, 382.--The basing point system described, 383.--Its economic defences, 384.--Early trade centres, 384.--Water competition once more, 385.--Three types of basing point, 387.--Purely artificial ones exemplified, 388.--Different practice among railroads, 390.--Attempts at reform, 391.--Western _v._ eastern cities, 391.--Effect of recent industrial revival, 392.--The Texas group system, 393.--An outcome of commercial rivalry, 394.--Local competition of trade centres, 395.--Possibly artificial and unstable, 395.--The transcontinental rate system, 395.--High level of charges, 396.--Water competition, 396.--Carload ratings and graded charges, 398.--Competition of jobbing centres, 398.--Canadian differentials, 400.--"Milling-in-transit" and similar practices, 401.--"Floating Cotton," 402.--"Substitution of tonnage," 403.--Seaboard differentials, 403.--Historically considered, 403.--The latest decision, 403.--Import and export rates, 404-409.