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Croly, Herbert David, 1869-1930

"The Promise of American Life"

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.


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