[The Promise Of American Life by Herbert David Croly]@TWC D-Link book
The Promise Of American Life

CHAPTER V
27/87

Almost all the state laws under which corporations engaged in transportation had been organized, had defined railways, like highways, as public necessities.

Such corporations had usually been granted by the states the power to condemn land,--and the delegation of such a power to a private company meant, of course, that it owed certain responsibilities to the public as a common carrier, among which the responsibility of not allowing special privileges to any one customer was manifestly to be included.

When the railroad managers have been asked why they cut their published rates and evaded the laws, they have always contended that they were forced to do so; and whatever may be thought of the plea, it cannot be lightly set aside.

As we have seen, the trunk lines leading from Chicago to the coast were the result of the consolidation of local roads.

After the consolidations had taken place, these companies began to compete fiercely for through freight, and the rebates were an incident in this competition.


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