favorable
locations; and this natural process was accelerated by the policy which
the larger companies adopted in the making of their rates. The rapid
growth of big producing establishments was forced, because of the
rebates granted to them by the railroads. Without such rebates the large
manufacturing corporation controlled by a few individuals might still
have come into existence; but these individuals would have been neither
as powerful as they now are, nor as opulent, nor as much subject to
suspicion.

It is peculiarly desirable to understand, consequently, just how these
rebates came to be granted. It was, apparently, contrary to the interest
of the railroad companies to cut their rates for the benefit of any one
class of customers; and it was, also, an illegal practice, which had to
be carried on by secret and underhand methods. 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. The trunk lines in the early years of their existence were
in the position of many other American business enterprises. For the
time being, they were more than competent to carry all the freight
offered at competitive points. Inasmuch as there was not enough to go
around, they fought mercilessly for what business there was. When a
large individual shipper was prepared to guarantee them a certain amount
of freight in return for special rates, they were obliged either to
grant the rates or to lose the business. Of course they submitted, and
defended their submission as a measure of self-preserv