Arizona republican., 1899-10-12
Testimony of Witnesses at h.
 duStrial Commission.
RAILROAD DISCRIMINATION
A Variety of Ways for Avoiding Regulations to preVenf if-A Proposition to Abolish Inc paSS System to Thereby Reduce Gen. eraI Fares National Inspection Law Advocated.


 Law Advocated.
 Washington, Oct 1.-The industrial commission resumed it's sittings today, hearing the members of the interstate commerce commission on questions at- fecting railroad transportation, Chair man Knapp being the first to be heard.
 MT. Knapp first took up the question of the operation of the law, which was approved in 1898 for the arbitration of differences between transportation companies and their employees by the chairman of the interstate commerce commission and the commissioner or labor. He said there had been but one appeal for adjustment under the law This was made by the employees of railroad company, and the company refused to accept the arbitration on the ground that in so vital matter as ~that of wages, they could not delegate control to persons other than those connected with the management of the road. MT. Knapp said that he had not felt that the one instance in which the law had been invoked was sufficient to warrant any general deduction
 Replying to questions, Judge Knapp dwelt at some length upon the sub ject of discriminations. He said there was no doubt that at the present time there was more or less discrimination on the part of the railroads in favor of individuals and communities. Still, owing to the fact that the railroads were now generally getting all the bus mess they can do and also, as he be- lieved, because the railroad men were growing more conscientious in the ob- servance of the jaw, there was small CT degree of disobendience to the law said, comparatively few cases of direct rebate paying, but there are many other means of reaching the same re- suit, as for instance, by false weigh ing, false billing, misdescription, or the purchase of supplies. A favorite means was to grant concessions on purely state traffic, while observing the requiremtns of the law on interstate business. He said there were still in stances of violation of the long and short haul clause, notwithstanding the supreme court decisions.
 MT Knapp denounced the practice on the part of the railroads of giving free passes as a great evil and with out excuse. He was satisfied that if the pass system were abolished the general passenger rate could be ma teriaIly reduced. He thought the in- terstate law could be amended so as to prevent the practice. He would make it a criminal misdemeanor. He also recommended the repeal of the antitrust law and anti-pooling laws, with more stringent regula- tions concerning contracts. He would have the corporations themselves in- dictable.
 He contended that there could be no between individuals in the matter of railroad traffic, which was his reason for advocating the abolition of the anti-pooling clause. Only cap
 
 antitrust and anti-pooling laws. MT. Knapp said he had only recently re- ceived a letter from the receivers of the Baltimore and Ohio railroad, con fessing discriminations in, the past and expressing an intention of abandon ing the practice He did not believe that government ownership would put a stop to discrimination on the part of the railroads because of the favoritism which is likely to go with political con- -rol.
 Judge Judson c. Clements advocated a national inspection law. He also spoke of excessive rates. saying that, contrary to the general opinion, there were still unreasonable rates. These were generally found in the rates to points, where the through 'ates were excessively low, and in such cases the high rates were practically in violation of the long and short haul clause of the interstate commerce law. Under this condition there was much discrimination in the interest of the rade centers and against the small owns.
 Commissioner Prouty explained the operations of export rates, showing hat in many cases the rates for arti les to be shipped abroad had amount d to only about half much as in ases where the articles were intended or local consumption. Investigation lad shown that the benefit of this dis was reaped entirely by oreigners. He did not believe it pos ible to build up or maintain a combi- nation dealing with staple commodi- ies without discriminating freight ates.
 MT Prouty expressed the opinion hat rates were even now being cut