Railroad Freight Rates in Relation to the Industry And Commerce of the United States

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The general effect of the grain rate structure of the railroads of the United States is summed up in volume VI of the Report of the Industrial Commission, pub- lished by the Government Printing Office in 1901. It states that while it is a fallacy to assume that grain rates all over the country have fallen anything like the rate on grain from Chicago to New York, there has been " great gain in the past fifteen years to the consumer by the elimination of numerous charges at the central markets by
... concentrating the trade, and to the producer by the competition of these central markets themselves, whereby the price tends to be kept up to a higher level than other- wise." It further says that " the competition of car- 126 Railroad Freight Rates riers and the rivalry of markets, in their constant efforts to control freight movement from grain territories, suc- ceed in steadily lowering railway rates." The diagram accompanying this statement shows that the prices of wheat oscillated between 135 per cent, in 1867 to 68 per cent, in 1896; of com, between 116 per cent, and 45 per cent.

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