Regulation of Railway Rates On Interstate Freight Traffic

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This practice was general, a large portion of the traffic being handled by this method.
In fact, the rates on almost all larger shipments were made by bargains between the railroads and the shippers.
104 DISCRIMINATION AGAINST PERSONS, REBATES.
This practice continued after railroad officials had been made to understand that the statute law requires common carriers to treat all shippers alike under like circum- stances. But they only changed their methods. Instead of making the special rates op
...enly, they made secret con- tracts with shippers, and carried out their part of the bar- gains by paying rebates. With the great increase of com- petition, the practice of paying rebates also grew, and at one time assumed enormous proportions. The roads or lines that were unable to furnish facilities of transporta- tion equal to those of the stronger lines, were compelled, in order to obtain a share of the competitive traffic, to offer their customers some inducement in the way of re- duced rates.

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