Columbia. Course outline, Railroad Problems. Seligman, 1898-1904

 

The following course outline was found in the papers of the historian of American economic thought, Joseph Dorfman. It has neither date nor instructor listed but from the Columbia University catalogues and the Bulletins of the Faculty of Political Science we can conclusively determine that the second semester course with this name and number was taught by E.R.A. Seligman every other academic year beginning 1897-98 going through 1903-04. He also taught the course in earlier years (course number VIII) and later years (course number 108).

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Course Description

Economics 7 — Railroad Problems; Economic, Social and Legal. — These lectures treat of railroads in the fourfold aspect of their relation to the investors, the employees, the public and the state respectively. A history of railways and railway policy in America and Europe forms the preliminary part of the course. The chief problems of railway management, so far as they are of economic importance, come up for discussion.

Among the subjects treated are: Financial methods, railway construction, speculation, profits, failures, accounts and reports, expenses, tariffs, principles of rates, classification and discrimination, competition and pooling, accidents, and employers’ liability. Especial attention is paid to the methods of regulation and legislation in the United States as compared with European methods, and the course closes with a general discussion of state versus private management. — Two hours a week, second half-year (1899-1900): Prof. [Edwin R. A.] Seligman.

Source: Columbia University, School of Political Science, Announcement, 1898-99, pp. 29-40.

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COLUMBIA UNIVERSITY
ECONOMICS 7

OUTLINE OF LECTURES
ON
RAILROAD PROBLEMS:
ECONOMIC, SOCIAL AND LEGAL

1. The problems stated.
2. Literature of the subject.

BOOK I. HISTORY OF RAILWAYS AND RAILWAY POLICY.

Chapter I. England.

3. Turnpikes and canals.
4. Genesis of the railway system and development to the investigation of 1844.
5. Development to Cardwell’s Act of 1854.
6. Development to Railway Commission of 1873.
7. Commission of 1881-1882.
8. Railway and Canal Traffic Act of 1888.
9. Present conditions and outlook.

Chapter II. United States.

10. Highroads and internal improvements.
11. The Erie Canal and Mississippi River.
12. Genesis and development of the railway system.
13. The early charters.
14. Railway consolidation.
15. Sleeping car and express companies.
16. Fast freight lines, co-operative and joint-stock.
17. Pools and traffic associations to 1877.
    1. Chicago-Omaha Pool.
    2. Southern Railway and Steamship Association.
    3. Southwestern Rate Association.
18. Trunk Line combinations to 1877.
    1. Saratoga Conference.
    2. Railway wars of 1874-1876.
    3. Live stock pool and evening system.
    4. Standard oil contract and petroleum pool.
    5. Anthracite coal pool.
19. Trunk line pools 1877-1887.
    1. West bound pool.
    2. East bound pool
    3. Joint Executive Committee of 1879.
    4. Railway wars and Trunk Line organization of 1885.
20. Railway co-operation 1887-1898.
    1. The Inter-state Commerce Act of 1887.
    2. The Anti-Trust Law of 1890.
21. Present outlook

Chapter 3. Other Countries.

22. Belgium. The mixed system.
23. France. Division of the field.
    1. Development to the law of 1842.
    2. Development to the law of 1859.
    3. Development to the law of 1884.
    4. Present outlook.
24. Germany. Government ownership.
25. Italy. System of leases.
    1. The law of 1865.
    2. The agreements of 1885.
26. Holland, Austria and other European countries.
27. Australia and the British colonies.
28. Comparison with the rest of the world.

BOOK II. THE RAILWAYS AND THE INVESTORS.

29. The railway as a corporation.
30. Financial methods.
    1. The financing of a railway.
    2. Conflict of interests between directors, stockholder and bondholders.
31. Railway Construction.
    1. Cost of railways in America and Europe.
    2. Construction companies.
    3. Other subordinate corporations.
    4. Parallel roads.
32. Railway speculation.
    1. Stock exchange speculation.
    2. Railways and commercial crises.
33. Railway profits.
    1. Stock watering.
    2. Limitation of dividends.
34. Railway failures and receiverships.
35. Railway accounts and reports.

BOOK III. THE RAILWAYS AND THE PUBLIC

36. Railway competition.
    1. The law of competition.
    2. Competition and combination.
    3. Competition for the field.
    4. Competition with waterways.
    5. Competition of carriers on the line.
    6. Separation between motor and carrier.
    7. Running powers or working arrangements.
37. Railway expenses.
    —Fixed charges and operating expenses.

38. Railway tariffs.
    1. Principle of railway rates.
    2. Cost of service principle.
    3. Value of service principle or charging what the traffic will bear.
    4. Relation between the two principles.
39. Classification of Rates.
    1. Theory of classification.
    2. History and practice of classification in Europe and America.
40. Personal discriminations.
    1. Allowance for quantity.
    2. Rebates and special rates.
41. Local discriminations.
    1. History and practice of local discriminations.
    2. Just and unjust discriminations.
    3. Principle of profits vs. principle of tolls.
    4. Sliding scale or zone system.
    5. Pro-rata or equal mileage, and short-haul rates.
       —Other projected reforms.
    6. Differentials between cities and export trade.
42. Pools.
    —Money pools vs. traffic pools.

43. Extortion and reduction in rates.
    —Comparison of European and American rates.

44. Passenger rates.
    —The Zone system in Austria-Hungary.

45. Accidents.

BOOK IV. THE RAILWAYS AND THE EMPLOYEES

46. Employers’ liability for accidents.
    —Comparison of European and American legislation.
47. Railway strikes. Especially strikes of 1877 and 1886.
48. Profit sharing and other schemes.
49. Relief associations. Compulsory and private insurance.
    1. Insurance against sickness.
    2. Insurance against accidents.
    3. Insurance against dishonesty. Guarantee funds.

BOOK V. THE RAILWAYS AND THE STATE.

50. Early State legislation.
51. The Granger movement and its results.
52. Maximum and minimum laws.
53. Pro-rataand short-haul laws.
54. Laws requiring improved facilities.
55. General railroad acts.
56. State and national aid to railroads. Land grants, etc.
57. Railway taxation.
    1. Basis—Taxation of franchise, property, gross earnings, net income, etc.
    2. Double taxation. Inter-state complications.
58. State railroad commissions.
    1. Compulsory commissions.
    2. Advisory commissions.
59. National Legislation.
    1. Early attempts.
    2. The Reagan and Cullom bills.
    3. The Inter-state Commerce Law of 1887.
60. The Inter-state Commerce Commission.
    1. Character of decisions.
    2. Powers and duties.
    3. Comparison with English commission.
    4. Projected amendments.
61. Present outlook and prospects.
62. General conclusion as to State vs. private ownership and management.
    1. Financial arguments.
    2. Political arguments.
    3. Socio-economic arguments.

 

Source:  Columbia University Libraries. Manuscript Collections. Joseph Dorfman Collection.Box 13. Folder “Economics History Project”.