ers cannot. And
while B is struggling with A, the three roads X, Y, and Z are perhaps
endeavoring to have some of the freight sent from Buffalo eastward over
their own lines. In instances similar to the foregoing it is customary
for B and C to divide the through business and to allow a "differential"
to A--that is, on account of its slower delivery of through freight, to
carry it at a slightly lower rate. B then adjusts its traffic with X, Y,
and Z in a similar manner; and on the whole this is the fairest way to
all concerned.

The following, one of many instances, shows the difficulties in fixing
rates that will not be unjust to either party: Danville and Lynchburg
compete for a certain trade. The Southern Railway passes through both
cities, but the Chesapeake & Ohio makes Lynchburg by another route;
Danville, therefore, is not a competing point, while Lynchburg is. As a
result, the Southern Railway charged $1.08 for a certain traffic from
Chicago to Danville and only 72 cents to Lynchburg, some distance
beyond, this being the rate over the other road. The matter finally
reached the Court of Appeals, and the latter sustained the Southern
Railway. The rate to Danville was shown to be not excessive, but if the
railway were required to maintain a rate to Lynchburg higher than 72
cents, it would lose all its traffic to that point, amounting to
$433,000 yearly. In a case of this kind there can be no help except by a
consolidation of the two roads; by virtue of the consolidation all the
Lynchburg freight will then go over the line having the easiest haul.

[21] That is, the Government pledged its credit for the money borrowed,
and in addition gave the companies alternate sections of public land on
both sides of the proposed line, the land-grants being designed partly
to encourage immigration and partly to increase the building funds of
the various companies. In several instances both the land-grants and the
money subsidies were scandalously used. At least one road used its
earnings to build a competing line and, after disposing of the
land-grant and pocketing the proceeds, allowed the Government to
foreclose the mortgage and sell the original road.

[22] From the Latin "castra," a camp.

[23] In 1897 the world's crop was 2,226,750,000 bushels, and as a
result, the countries in which the crop was short suffered from high
prices. Had it not been for the prompt carrying service of railways and
steamships famine would have r