The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-07-14

I'm the history Of railroading in
America there never was a time when
freight rates were maintained as they
are now or as they have been since the
list of April" said one Of the local
yesterday, and then supplemented the
rather surprising statement by adding
that he did not believe there was a
road in the United States that had
made an unauthorized, or. more proper
ly speaking, an illegal reduction of a
rate since the time mentioned.
To the ordinary layman these state
ments would seem to indicate some
thing abnormal either in the conditions
of business or with the affairs of the
railroads, but such is not the case. No
condition OF business and no combina-
ton which the freight managers could
enter into, however binding, would
operate to keep rate cutting from be-
ing done by the avaricious hustler for
business for has line, under the con-
ditions which obtained prior to April l.
1t was the decision of the United
States supreme court in the now fam
Gus Brown case, which has brought
about the present conditions, which are
operating alike more favorably to the
shipper and the railroad than any that
have ever existed heretofore.
In that decision the court held that
witnesses summoned to testify before
tic interstate commerce commission
must testify or be subject to punish
menf for contempt.
The decision was rendered April l.
Before that time witnesses summoned
to testify concerning rates, the system
unoer which unpublished reductions in
freight rates was conducted. would re-
fuse to give evidence, but since d pen
atty attaches to such a refusal no one
cares to take the chance of going to
jail TO procure business, and hence it is
that cuts in freight rates which are not
authorized by the proper committee or
which may not be made by any road by
publishing a tariff. are a thing
of the past. Said the authority
quoted above: Il don't think
a road could De named that has taken
a consignment of freight under con-
tract to reduce the rate by making a
rebate since the decision was rendered
or if there could the instances are eX-
ceedingly rare and the person RESPONSE
BILE was willing TO take greater chances
than most railroad men,"
Speaking of the causes which orig
lnally led up to the system of rebate
giving, which became so general
throughout the country, the gentleman
said: 1T didn't matter how honorable
freight agent Nigh wish to be in
maintaining rates and giving shippers
like privileges and benefits, there would
always be some other who would try
TO cut under and get his business, and
to save himself he would have to meet
the rate. For instance, l have a GUS
toner who because of personal or some
other reasons always gives me his
business. Another road wants to get
it and offers 10. reduce the freight by
giving a rebate. My customer says L
like your service and dislike to give
my business to another line, but I must
consult my pocketbook first. The re-
suit is, if / wish to haul that freight as
I have been doing 1 must meet my
competitors terms or go him one bet
ter And so the rebate custom came
about, but it is a thing of the past, and
1 am glad of the fact, as L believe all
other freight man who wish to do
legitimate business are"
The fact that the day of rebate Civ
ing has gone by will operate in every
way as a benefit to the shipper, ex-
cept, perhaps, a few Of the larger ones,
for this reason: The man with a heavy
shipment could go to the railroad with
a proposition to give his business to
the road on condition the rate was re-
duced, which would be done in the
form CT a rebate, while the smaller
shipper was compelled to pay the full
tariff schedule. The former was there
by enabled 70 sell at a profit at the
price the latter must sell for to pay
expenses, and thus the smaller dealer
never knew where he was at" and
never knew how TO figure. The Brown
decision is therefore resulting in great
benefit TO shippers at large, for they
are all on an equality and they get the
added benefits Of better service, as &C
commodation and good service are now
the only inducements the roads have
for business.