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The heart of the railroad problem

Note 118 — Chapter XIV · LOCALITY DISCRIMINATIONS.

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Industrial Commission, 1900, vol. iv, pp. 441–442. Shippers in Norfolk, Nebr. for example, pay the local rate of 45 cents per cwt. (on first-class goods) to Sioux City on the Missouri River, plus the rate from Sioux City to Chicago, while Fremont, a rival town near Norfolk, has the same rates as Sioux City, the local rate not being added in this case to the Missouri River rate. This gives Fremont manufacturers and shippers a decided advantage over those of Norfolk, and tends to build up Fremont and stunt the growth of Norfolk. The witness suggested that “if the rates were established by the Government instead of at the will and pleasure of the railway managers, it is a natural conclusion that points having the same general conditions would receive equal benefits.”

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