The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-08-16
STATE FEB 4TTNG.

One Of the salient forces which built
up the Standard Oil company was its
demand of the transportation compa-
MES that they should carry its product
shipped In large quantities at lower
rate than was charged small shippers.
This was done by means of the conven-
lent rebate. There are doubtless many
shippers within the sound of The Jour-
nal and Courier's voice who have made
demands for similar rebates for local
shipments and received them upon the
theory that as larger patrons Of the
transporting companies they were de-
serving of a larger consideration than
occasional and small shippers.
If the new understanding of the rate
principle is the correct one the evil Of
rebating lies in its discrimination, on
the one hand, and the power it gives
its beneficiary, on the other hand, to
undersell his competitor in the open
market and if necessary to swallow
him outright We would like to apply
this philosophy to the State Of Con-
necticut in both Of its aspects in con-
nection with the appropriation Of mon
ey to the towns Of the State for good
roads purposes. According to the leg
islation of the winter, towns having a
grand list of $1,25900O must add to the
appropriation made by the State for
the Improvement of the roads one-quar-
ter Of the cost. Towns having a grand
list less than that amount need pay
but one-elghth Of the cost. Further
calculation is unnecessary so far as
the discrimination is concerned. Dis
elimination is practiced Of the rankest
kind, even though unlike the rebate
discrimination the advantage is given
to the financially weaker town instead
of to the financially stronger town, We
are by no manner of means prepared
to say that an injury is done the
stronger towns in this connection
since good roads represent an economic
value in which all the people share
but the fact which we have related
nevertheless does constitute discrimina-
ton in the enjoyment of the public
funds, which we are told is contrary
to constitutional law.
Nor do we find any greater satisfac-
ton in analyzlng the second part of
the contention that rebates are evil be-
cause they enable the stronger to over.
come the weaker. In the Connecticut
case the situation is reversed but the
principle remains the same Here 1t Is
a case Of enabling the weaker to exer.
else an undue advantage over thu
stronger. While this Is strictly in keep.
ing with the political organization o.
the State In the halls Of legislation WI
find it impossible to escape {
bothersome confusion Of mind 81
) to where the morals Of the situation ge
\ off If there had never been any weak
shippers all competing with each 9th
er there would have never been such
q combination as the Standard OIL
company, which In its strength batter
ed the life out of new weak rivals
with more confidence in their skill
than judgment. There would have
been no rebates. Is there danger In
the Connecticut system of rebating
which has for long time held good
in school appropriations, so growing
among the towns of the State with
less than $1,250,000 grand list thai
l. the large centers of population will bt
placed more and more at the mercy o.
1.-THE small centers? Certainly this ap
prehension Is justified if the philoso
phv of the hour is we'll based II
a human experience. Tall oaks from
little acorns grow, and so too littl'
: drops Of water, little grains Of sane
$ make the mighty ocean and tn
. beauteous land.
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