200 THE BOOK OF WHEAT 



It was asserted in the eighties that the competition of over- 

 constructed railroads in the United States and ships in England 

 had caused the hauling of wheat below cost. In 1901 the sur- 

 plus-cereal states still had at least as many railroads as could 

 be profitably operated. 1 The transportation facilities proved 

 inadequate for moving the wheat crop of 1906. 



By making freight discriminations, transportation companies 

 can exert a powerful influence upon the volume and direction 

 of grain traffic. Discriminations are effected in various ways, 

 and may be against certain forms of grain, against certain per- 

 sons, and against certain places. It is claimed that the export 

 flour trade is greatly injured by the fact that railroad and 

 ocean carriers discriminate against flour in favor of wheat, 

 thus giving the foreign miller an advantage in competing with 

 the American miller. 



The interstate commerce commission found that discrimina- 

 tions during the year 1898 were probably worse than at any 

 previous time. "It is claimed by some that direct rebates and 

 secret rates are still frequently granted; commissions are paid 

 for securing freight; goods are billed at less than the actual 

 weight; traffic within a state not subject to the interstate- 

 commerce act is carried at lower rates; allowances and ad- 

 vantages are made in handling and storing, etc." The large 

 shippers generally receive the greatest favors. Laws have been 

 enacted to remedy the evil, but their effective enforcement is 

 not an easy task. On the whole, however, it must be said 

 that the transportation service for wheat has improved vastly 

 during the last 25 years, while its cost has been enormously 

 reduced during the same period of time. Such evils as exist 

 will doubtless be corrected in at least some measure as a result 

 of the present wave of popular agitation against all corporate 

 abuses. 



1 Industrial Commission, 6:48. 

 3 Industrial Commission, 4:5-6. 



