in isolated and exceptional instances. But such instances cut no figure in the operations of railroads as a whole. However, the supervision can do no harm if wisely exercised. It may tend to placate public opinion, which, in the United States at least, regards every railway corporation "as the natural enemy and oppressor of the masses of the people, to be despoiled and warred upon whenever occasion offers." This antagonism lies at the bottom of every unjust verdict against railroads; lies back of the oppressive legislation that disfigures our lawbooks, and that makes our railroad companies little better than common outlaws.

* W. D. Dabney, "The Public Regulation of Railways," page 280.

CHAPTER VI.

SPECIAL RATES AND THEIR RELATION TO COMMERCE.

I have referred to the question of special rates in the preceding chapter, but not extensively. The subject merits more extended notice. A rightful solution of it is of the greatest importance.

Every rate made by a railway is a special rate, because conditions are in no two cases exactly alike. Special rates, however, are generally understood to mean those that are given to particular individuals to meet especial emergencies-a rate lower than the established tariff. It is in this sense that I use the term in the following chapter. The interstate commerce act, already referred to, restricts the use of special rates. The carrier must, in every case where he gives a special rate, print and post a tariff therefor. Thus the railway companies are annually subjected to the expense and annoyance of printing millions of tariffs, each tariff particularly governing a particular rate for a particular individual. This supposed publicity is thought to be necessary to protect the community from collusion between carriers and shippers; a most absurd precaution, and one that involves enormous expense and annoyance, alike injurious to the carrier and to the community. No doubt instances have occurred where the use of special rates has been attended with favoritism,

where there was an understanding between the agent of the carrier and the shipper, where the agent derived some personal advantage therefrom. But such cases have neither been frequent nor general, and are unworthy of notice in comparison with the good that has grown out of the unrestricted use of special rates. To condemn them because of such practices, is very much like condemning the banking system of a country because a cashier, or half a dozen cashiers, are rascals.

The economic principle that underlies the making of a rate finds more apt expression in the special rate than in any other. It more nearly accords with business practices than any other; more nearly represents the measure of value between what a thing is worth at the point of shipment and the price it will bring at the place of consumption. In the practical conduct of traffic such rates are made, in particular cases, when business can not afford to pay regular rates. They are made after the most searching inquiry as to what the traffic will bear. Their purpose is to stimulate production; to facilitate exchanges. "The principle which governs a railway company in fixing the rate is that of creating a traffic by charging such sum for conveyance as will induce the product of one district to compete with that of another in a common market."* If left unobstructed in the operations of their property, special rates will be made by carriers whenever necessary to encourage trade or foster new enterprises. In some instances, they will be made at a

loss, in the hope that a remunerative traffic will grow out of them. They may be likened unto the principle of protection, so necessary in the youth of a nation, and so unnecessary when its industries are once established. "The power of granting special rates permits a development of trade that would not otherwise exist, and it is abundantly evident that a large portion of the trade of the country at the present time has been created by, and is continued on the faith of, special rates."*

Special rates benefit both producer and consumer, render possible an exchange of commodities not otherwise practicable. They facilitate trade and cheapen cost to consumers. The isolated instances of wrong that grow up under them are unimportant, are not to be compared to the general good they engender. To restrict their use because of these wrongs, is to deprive the world of a good because individuals are sufferers; is to make the convenience or profit of particular persons the measure of commercial activity; is very much like abolishing passenger trains because individuals are injured by them. Those who inveigh against the use of special rates do not recognize the effect upon the commerce of the world that their prohibition would engender.

Special rates are the buttress and foundation of business, without which it could not be carried on. Under them communities are lifted out of the slavery of local environment, are generalized, are made the beneficiaries of an extended market. It is claimed

that they are unnecessary and unjust. They are both necessary and just; both equitable and fair. They represent a need and its gratification. While special in their issuance, their purpose is the general good. They represent an integral part of business. Rates that can not be adjusted to meet the exigencies of the hour are apt to be a drag on the commerce of a country, are mischievous, are likely to cripple the interests they should serve. Special rates are discriminatory; are a recognition of the immutable law of trade, of its fluctuations and inequalities; a relinquishment of a part to avoid losing the whole. They represent in transportation the practice of commercial life that accords something to every one who handles a product.

The purpose sought in giving a special rate is selfish. But its value to the community is none the less material on that account. The industrial interests that crowd the lines of our railroads owe their inception and growth to the special rates that have been granted them. Without the use of such rates, the undeveloped portions of the country would, in the main, remain as destitute of manufactories as the bridle paths of Afghanistan. It is possible-probable that special rates are sometimes granted unwisely, are used improperly; but this is only saying that man is fallible. They are none the less necessary, none the less valuable because of it. They are the delicate fluid that anoints and lubricates the joints of the transportation body. Without them the wheels of commerce would cease to turn; we