Rebates had inevitably accompanied railroad expansion. As the total railroad trackage doubled to 70,000 miles within eight years after the Civil War, the roads were saddled with high fixed costs and heavy bonded debt. This forced them to maintain a high, steady freight volume to stay alive and waylaid them into vicious rate wars. Rebates weren’t just solicited by shippers but were sedulously pushed by railway freight agents eager to win over new business. Rebates enabled them to maintain the fiction of listed rates while secretly giving discounts to favored shippers. Over time, relations grew
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