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Updated: June 10, 2025
It sometimes happens at present not that a rate is too high but that a favored shipper is given too low a rate. In such case the commission would have the right to fix this already established minimum rate as the maximum; and it would need only one or two such decisions by the commission to cure railroad companies of the practice of giving improper minimum rates.
A shipper of oil in Cleveland, Ohio, would have a difficult time in protesting against illegal discrimination on the part of a railroad conducting an inter-state business and organized under the laws of New York. No doubt he could appeal to the Federal government; but the Federal government had been, for the time being, disqualified by many different causes from effective interference.
I say that there is not anything that can be done by these corporations against individuals where the shipper himself has not a right to get into court in some way or other, if he is not willing to abide by the decision of the commissioners appointed by the President."
Much depended upon whether the shipper had the advantage of competition of carriers. The Standard Oil Company of Ohio, being situated at Cleveland, had the advantage of different carrying lines, as well as of water transportation in the summer; taking advantage of those facilities, it made the best bargains possible for its freights. Other companies sought to do the same.
Often railroads would like to combine for the purpose of preventing a big shipper from maintaining improper advantages at the expense of small shippers and of the general public. Such a combination, instead of being forbidden by law, should be favored.
It never occurred to Lane to go over with her the minute detail of his full day: how he had considered an application from a large shipper for switching privileges, had discussed the action of the Torso and Northern in cutting the coal rates, had lunched with Freke, the president of a coal company that did business with the A. and P.; and had received, just as he left the office, the report of a serious freight wreck at one end of his division.
To drop the style of story-telling: Individual enterprise has given us what is admittedly the most efficient railroad system in the world. It has done so whilst making our average capitalization per mile of road less, the scale of wages higher, the average rates lower, the service and conveniences offered to the shipper and the traveler greater than in any other of the principal countries.
Both are however, articles of no great consumption, for, being bulky and possessing little intrinsic value, they will not bear the high charges of freight and other expenses, attendant on the navigation of the Asiatic seas, and can only suit the shipper, as cargo, who is anxious not to return to the above countries in ballast.
Inasmuch as there was not enough to go around, they fought mercilessly for what business there was. When a large individual shipper was prepared to guarantee them a certain amount of freight in return for special rates, they were obliged either to grant the rates or to lose the business. Of course they submitted, and defended their submission as a measure of self-preservation.
The buyer repacks the eggs and usually candles them, the strictness of the grading depending upon the intended destination. The loss in candling is generally kept account of, but is seldom charged back to the shipper. The egg man wants volume of business, and if he antagonizes a shipper by charging up his loss, the usual result will be the loss of trade.
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