The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1889-09-03
RAILROADS AND RAILROAD
COMMISSIONS.
no. N.
From scotland Nsck Denocrat.)

is SO clearly pictured by the report,
December /, 1887, of the Inter State
Commerce Commission, and comes
from such high authority that / con
slider no excuse necessary for making
copious extracts from it.
When railroads began to De built
the demand for participation IN their
benefits went up from every city and
hamlet in the land, and the public
was impatient of any obstacle to their
free construction and of any doubts
that might be suggested as to the
substantial benefit to flow from any
possible line that might be built:
Under an imperative popular demand
general laws were enacted IN many
States which enabled projectors OF
roads to organize at pleasure and
select their1own lines, and where there
were no such laws the grant Of a spe-
cial charter was almost a matter OF
course, and the securities against the
abuse of corporate power were little
more than nominal.
When roads were built for which
the business was inadequate, the
managers were likely to seek support
by entering upon competition for
business which more legitimately be-
1onged to the other roads, and which
could only be obtained by offering
rates so low that if long continued
they must prove destructive. A com,
petitive warfare was. thus opened up
IN which each party endeavored to
underbid the other, with little regard
to- prudential considerations, and
freights were in a great many cases
carried at a loss, in the hope that IN
time the power of the rival to con-
tinue the strife would be crippled and
the field practically left to a victor
who could then make its own terms
with customers. When the competi-
ton was less extreme than this, there
was still a great deal of earnest strife
for business, some of which was open
and with equal offerings of rates and
accommodations to all, but very much
of which was carried on secretly, and
then the very large dealers practically
made ther own terms, being not only
accommodated with side tracks and
other special conveniences, but also
given what was sometimes spoken Of
as wholesale rates, or perhaps secret
rebates, which reduced the cost of
transportation to them very greatly
below what smaller dealers in the
same line of business wer compelled
topay.
Such allowances were sufficient of
themselves in very many cases to
render successful competition, as
against those who had them, practi-
cally impossible. The system of
making special arrangements with
shippers was in many parts of the
country not confined to large manu-
facturers and dealers, but was ex-
tended from person to person under
the pressure of alleged business neces-
sity, or because of personal impor-
tunity or favoritism. The result was
that shipments of Importance were
commonly made under special bar
gains entered into for the occasion, or
to stand until revoked, of which the
shipper and the representative of the
road were the only parties having
knowledge. These arrangements
took the form of special rates, re-
bates, drawbacks, undertaking, re-
duced classification, or whatever
might be best adapted to keep the
transaction from the public; but
the public very well understood that
private arrangements were to be had
If the proper motives wer presented.
The memorandum-book carrie&in the
pocket of the general freight agent
often contained the only record of the
rates made to the different patrons of
the road, and it vas in his power to
place a mar or a community under an
immense obligation by conceding a
special rate on one day, and to multi
ply the effect of it On the next by do
ing even better by a competition.
The system, if it a be called such,
involved a great measure Of secrecy,
and it's necessary conditions were such
as to prevent effective efforts to break
it down, though the willingness to
make the effort was not wanting
among intelligent shippers. 1t was of
the last Importance to the shipper that
he be on good terms with those who
made the rates he must pay; to con.
tend against them vas sometimes re.
garded as a species of presumption
which was best dealt with by mcreas.
ing existing burdens; and the shipper
was cautious about mourning the risk.
Nevertheless it was a common obser.
walton, even among those who might
hope for special favors, that a system
of rates open to all and fair as between
localities, would be far preferable to
system of special contracts into which
so large a personal element entered OF
was commonly supposed to enter
Permanence of rates was also seen tC