The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1914-04-03
REBATES VS.. RAILROAD DIScRIM
NATIONS


way systems of the country, has been
made a crime under our state and
federal laws.
What was the nature and effect of
the rebate system?
The railroads at that time were I'M
der the competitive system-it was
before the creation of railway COM
missions.
AS John Smith did larger business
than John Jones, the competitive rail-
way systems naturally were anxious to
obtain the business of Mr. Smith, and
to do so offered him a most seductive
rebate, though on the face of the re-
turns"-using political for a bust
ness phrase-it was shown that Mr..
Smith paid the same rate of freight
as Mr.. Jones. The rebate was a Sc
cret performance. In a word, Mr..
Smith received a certain stipulated
percentage of rebate on all articles of
freight handled by him.
The effect of this was that it ena-
bled Mr.. Smith to undersell his COM
petitor, Mr. Jones, and drive him out
OF business.
This system became so glaring that
an insistent protest was made against
its injustice, until finally it was made
q criminal offense by statutory law,
and is now regarded as vicious as
other crimes.
But what difference is there be-
tween the rebate system and in CIV
ing one class of cities a lower rate
than another class of cities
Is not the principle identically the
same? Is not the result the same?
The class of cities that are forced
to pay higher rate than the favored
cities are forced out of business. That
is to say, they can only do a local,
retail trade. Is not the result the
same? Is it not just as vicious as re-
batting one merchant to the injury of
his competitor, and forcing him out of
business?
| 1t is impossible for those cities dis
eliminated against to compete with
the favored cities in any wholesale or
manufacturing enterprise.
In viciousness of principle and in
effect, if they are not on the same
plane then we are suffering under a
delusion, and there is something
wrong with our gray matter.
AS we see it, we cannot understand
why they are not placed under the
same ban.
Suppose that the interstate com
MERGE commission, as it will do some
day, should take control of our coast
wise shipping and should put the
same theory into practice, what would
be the result?
Will not that body have it in its
power to make and unmake seaport
cities?
Suppose, for example, That the COM
merce commission gives Savannah a
much lower rate than Jacksonville,
and that this rate is so discriminatory
that it will make it impossible for
Jacksonville to attempt to compete
with Savannah, would not a mighty
howl go up from Jacksonville?
Suppose that with this lower steam
ship rate that the state and interstate
commission were to permit railway
freight from Savannah to pass
through Jacksonville and come on to
Ocala at a much lower rate than if
stopped off at Jacksonville, would
Jacksonville have no cause for com
plant?
| Would not such fragrant discrimi-
nation be as vicious as the rebate sys-
tenn?
This is not suppositious PROPOSE
ton so far as the interior is concern
ed. That is the every day problem
that it is suffering under and is com
PEELED to face.
The question with the interior, that
has this milestone fastened so firmly
about its neck, is how it is going to
rid itself of it?
Either the state must build trunk
lines, as suggested by Judge Lester
Warner, and operate them, as it has
right to do, or else have the legisla.
ture to fix freight the same as passen-
ger rates, regardless of the commits
sion.
The people are sovereign, and the
exercise of this right is lodged in
their own hands.
The commission seems to be a
stumbling block in our way of obtain
ing relief.
| Mr.. Joe Hugh Reese ono of the