The Illinois Central a Centennial View

Cover The Illinois Central a Centennial View
The Illinois Central a Centennial View
Robert Mize Sutton
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Finally, an agreement was reached whereby the government claimed the right to use the company's roadway without compensation, but agreed to compen- sate the railroad for the use of its motive power, passenger and freight cars, and other facilities. The amount agreed upon was the normal rate al- lowed non-land-grant railroads for pas- senger and freight service, less 33¥i percent said to be due the government for "charter" privileges.
12 CURRENT ECONOMIC COMMENT The agreement reached between the
... United States government and the Illi- nois Central Railroad on August 15, 1861, was continued in force through- out the war. Except for numerous com- plaints on the part of the railroads and occasional efforts in Congress to bring about a more literal interpretation of the "free from any toll" clause, it re- mained as the guiding principle in the relationship between government and the land-grant railroads until all claims to land-grant rates were finally aban- doned within the past decade.
The experience of the Civil War caused an entirely new estimate to be placed upon the value of railroads in modern warfare.


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