The Quarterly Journal of Economics, volume 25

Cover The Quarterly Journal of Economics, volume 25
The Quarterly Journal of Economics, volume 25
Harvard University
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Rep.
440.
i L C. C. Rep. 088; 4 I. C. R. 885.
Digitized by VjOOQIC RAILWAY RATE THEORIES 495 other hand, claimed that they had for years been developmg a system of reachmg the small dealer in eggs and that this was to the interest of the public at large as well as to the interest of the carriers, since the effect of granting lower rates on car load lots would be to concentrate the egg business into the hands of the large dealers who could then, by threaten- ing to throw all their business to on
...e road, compel unfair concessions from the carriers.
It was this argument of the defendants which prevailed in the minds of the majority of the Com- missioners and led them to refuse the request for a car load rate. They gave some consideration to the cost of service arguments of the complainants but declared that only a few points of difference in the cost of car load and less than car load shipments had been shown to exist. On the other hand, they said: — The evidence shows that at the present time 83 per cent of the business is controlled by these large shippers, and it would seem that an order granted as prayed for by complainant would go far towards concentrating the whole business in their hands.


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