to no system and varied without rule, that every application for a special rate was judged by itself and with reference to its own peculiar circumstances, and that it depended upon the judgment, or rather caprice, of the officer to whom the application was made, whether and to what extent a special rate should be granted. The reductions made to privileged merchants often amounted to more than what would be a fair profit to the dealer on the commodities shipped. The privileged dealer was thus enabled to undersell his rivals and eventually force them out of business or into bankruptcy. It was not at all uncommon for railroad companies to allow discounts amounting to 50, 60, 70 and even 80 per cent. of the regular rates. The New York Central gave a Utica dry-goods merchant a special rate of 9 cents while the regular rate was 33 cents on first-class freights. The lowest special rate granted at Syracuse was as low as 20 per cent. of the regular tariff rate on first-class goods. David Dows & Company and Jesse Hoyt & Company, by means of a grain rate from 2-1/2 to 5 cents lower than those given to other firms, were enabled to control in the winter of 1877 the grain trade of New York. The railroad even extended its fostering aid to A. T. Stewart & Co., giving them a special rate "to build up and develop their business." The testimony given by Mr. Goodman, assistant general freight agent of the New York Central, in reference to the principle by which he was guided in granting special rates, is of sufficient interest to be given a place here: Question. You made the rate for A. T. Stewart & Company? Answer. Yes, sir. Q. Was that to build up and develop their business? A. Yes, sir. Q. That was the object? A. That was one of the objects. Q. January 11th, 1879? A. Yes, sir. Q. You thought that business was not yet sufficiently built up and developed? A. No, sir; not the manufacturing part of it. Q. How long had the factories of A. T. Stewart & Company been in existence? A. The one at Duchess Junction about three years, I think; it isn't completed yet. Q. And they were languishing and suffering? A. To a great extent; yes, sir. Q. And you acted as a fostering mother to A. T. Stewart & Company to build it up? A. Yes, sir; I added my mite to develop their traffic; we wanted to carry the freight; boats might have carried it in the summer. Q. Do you know anything of G. C. Buell & Company? A. Yes, sir. Q. You wanted to develop their business? A. Yes, sir; they are at Rochester--wholesale dealers. Q. Do you know H. S. Ballou, of Rochester? A. I do not. Q. He seems to be a grocer there? A. A small concern, perhaps. Q. Small concerns are not worth developing, according to your opinion? A. Our tariff rates are low enough for them at Rochester. Q. That is to say, a small concern ought to pay 40, 30, 25 and 20, as against a large concern, 13; that is your rule? A. Well, if he is a grocer, most of his business is fourth-class freight.