Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-10-05
Discrimination by Railway Companies
Described.
SMALL SHIPPERS THE SUFFERERS
Chairman Knapp Before the Indus.
trial Commission.
IN FAVOR OF POOLING

of the witness. Mr.. Knapp gave testimony
on the transportation interests of the coun-
try.
| Speaking of the arbitration act of June
1893, he said the interstate commerce COM
mission had had but one case in which it
had attempted to secure arbitration of the
| daff1cuties between employees and railroad
corporations He said the railroad affected
| declined to turn over such important
| question as that of wages, which the
one involving the largest part of the dis
bursements of the road to arbitrators
| He did not wish to give the name of the
| parties involved in this attempt to secure
| arbltratlon, as the representatives Of the
| employees had requested that publicity he
| not given 1t.
| The case in question which it was desir-
| able to have arbitrated was one that would
| properly come under the law. No case in
| VolVng other questions has been proposed
| 10 the railroads for arbitration or concilia-
| ton.
| Adoption of Safety Appliances.
| Mr.. Knapp referred at some length to the
adoption of safety appliances by the rail-
roads. and said that they had become so
! universal that be did not think it would be
| necessary to grant any extension in the
! operation of the law making their use man.
! datory.
The saving of life had not been so great
| as it would be when the safety appliances
| should become perfected. Now they get
| out of order, and at times men have to
go between the cars to fix them That in
volved risk and caused accidents. But
when these minor defects are remedied he
was satisfied that the advantage from the
law would be enormous.
When asked if he thought there are at
the present time determinations practiced
by the railroads Mr. Knapp replied: n
| doubtedly at the present time
Senator Manory-"In what form are the
| Determinations against Individuals?
Method of Discrimination.
Mr.. knapp-"Generally speaking, of
course, by some sort of secret arrange
! n:ents which result in one person getting
| more favorable rates of transportation than
some one else under the same condition.
The methods by which that result can be
accomplished are limitless. l think it can
| be fairly said at the present time that the
| payment of rebates to shippers is compare
| lively rare, and where concessions of some
| SORT made they are brought about In
| some other way.
He said the rebate system is more open
| than other systems that could be used to
accomplish the end. and for that
reason is rarely used. In hard times dis
examinations are more common than during
good times, for the reason that business is
| harder to get. The margin of profit in the
| transportation business had been cut down
| to so small a margin that ordinarily the
| companies could not afford to give any dis
terminating rate
Sometimes smaller rate is given con-
Germ doing state and interstate business on
the former alone, which in effect is a dis
| terminating rate on all its business.
Largest Shippers Favored.
Determinations granted a shipper
| We're not because of any desire to prefer q
| particular Individual but to secure freight
| and in such deals is was natural that the
| largest shippers should be the ones to get
| the special rates. 1t was competition be-
tween the carriers that caused it.
A Natural Monopoly.
Mr. Knapp explained at considerable
| length why he thought the anti-poolng
| bill and the antitrust law should not, in
| his opinion, be applied to the railroads.
| The railroad is natural monopoly, and in
| the nature of things there could be COM
| petition in only restricted sections of the
| country. Where there is competition it
| results in Determinations and in that way
| to the disadvantage of the public. The
| railroads should be allowed to enter into
agreements as to rates. but Congress and
! the state legislatures have power to see
| that such rates are not excessive.
| The important thing in railroad legisla-
ton was to that there should be no
when these corporations are competing for
business.
Lately a rate to the eastern seacoast had
been given on grain less than on flour, and
the matter was now under consideration.
III the present discrimination against the
flour product should continue 1t would re-
suit in the expectation of wheat to be
milled abroad, as the rate on flour would
not allow it to compete in the eastern
markets with wheat sent abroad and re-
shipped to this country after being made
into -four.
Government Ownership.
The government ownership of railroads,
he thought, had the evident disadvantage
| of being liable to discriminating rates be-
cause of political power giving under such
a system advantages to one section over
another
long and short haul question had
been decided by the United States Supreme
Court. he said. in such way as to make
such legislation ineffective, and larger rates
are given on long hauls than short hauls,
and in that way many small inland towns
were injured This was particularly the
case south of the Potomac and east Of the
Mississippi river.
Speaking of the issuing of passes he said
that practice was still very largely follow
ed, and he instanced a case in the latter
| part of one November when. with a single
exception, a train load of passengers were
| brought to this city from Chicago free of
| charge. This train was filled with mem
practice of giving free passes was stopped
he was satisfied that lower passenger rates
generally could be had by the public
Remedy Proposed.
AS a remedy for railroad discrimina TONS
and for the issuing of passes, he said such
acts should be made misdemeanors, punish
able other crimes are in the courts, and
he believed that would stop the practice.
| He favored the opening of the books of
railroad corporations to the inspection of
government officials at any time and with
out previous notice.
He did not that high capitalization
permitted railroads to get higher rates ex-
| cept in cases in which the legislatures or
courts have power to fix rates where there
| is no competition. and in which cases the
capitalization may be urged as reason
| for higher rates.
| Commissioner Clements' Views.
Commissioner Judson c. Clements of the
| interstate commerce commission followed
| Mr.. Knapp. Mr.. Clements said the railroad
| rates of the country today are not excessive
| as a whole, but they are too small at COM
| peting points and too large at non-compet-
| ing points. Mr.. Clements was giving his
| t. stimony when The Stars report of the
proceedings was closed.