In recent years, railroads have been combining with each other, merging into super systems, causing heightened concerns about monopoly. As recently as 1995, the top four railroads accounted for under 70 percent of the total ton-miles moved by rails. Next year, after a series of mergers are completed, just four railroads will control well over 90 percent of all the freight moved by major rail carriers.
Supporters of the new super systems argued that these mergers will allow for substantial cost reductions and better coordinated service. Any threat of monopoly, they argue, is removed by fierce competition from trucks. But many shippers complain that for heavy bulk commodities travelling long distances, such as coal, chemicals, and grain, trucking is too costly and the railroads therefore have them by the throat.
The vast consolidation within the rail industry means that only one rail company serves most shippers. Railroads typically charge such "captive" s
A. cost reduction is based on competition
B. services call for cross-trade coordination
C. outside competitors will continue to exist
D. shippers will have the railway by the throat
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