The evening times., 1899-01-13
EVENTS OF 4 Year
With THE RAILROADS
Protective Laws Ignored and
the Public Abused.
Safety Appliance Acts Work for
Life and Limb.
Vast Earnings for IS9S-Interesting
Report of the Interstate Com
merce Commission.

A synopsis of the twelfth annual report
of the Interstate Commerce Commission
was given to the press today. 1t deals with
the work of the commission for the past
year, and is, perhaps, the most interesting
document of its kind ever promulgated by
that body. IJsstaTts off by again calling
the attention Of Congress TO numerous vi
tai respects IN witich the interstate COM
merce act has proven defective and made
Quate To state that the law, in its present
condition, cannot be enforced is but to re-
peat what has already been said" urges
the report but until further and impor-
tant legislation is enacted the best efforts
at regulation must be feeble and disap-
pointing.
After importuning Congress 10 amend
the law in accordance with suggestions
made in other reports which appear posi-
lively essential, the report says:
The situation has become intolerable
both from the standpoint of the public and
the carrier. Tariffs are disregarded. dis
examinations constantly occur, the price at
which transportation can be obtained is
fuctuating and uncertain. Railroad mana
gers are distrustful of each other, and
shippers all the while in doubt as 10 the
rates secured by their competitors. The
volume of traffic is so unusual as 10 fre-
quently exceed the capacity of equipment,
yet the contest for tonnage seems never re-
Taxed. Enormous sums are spent in pur-
chasing business and secret rates accorded
far below the standard of published
charges. The general public gets little
benefit from these reductions, for conces-
sions are mainly confined TO the heavier
shippers All this augments the adyan-
tages of large capital and tends TO the in
jury and often TO the ruin OF smaller deal
ers. These are not only matters OF graY-
4 est consequence TO the business welfare OF
the country, but they concern in no less
{ degree the higher interests of public NOR
ality."
To illustrate the above condition cases
of much interest are cited. The facts set
forth are the result of investigation by the
commission.
An investigation held at St. Paul last
I March disclosed various practices under
which rebates from published rates were
4 secured by shippers of -four from Mime
! apolis and Duluth to Atlantic seaports
( and other Eastern points. The Eastern
, purchasers paid the tariff rates, and the
shippers subsequently collected rebates ac-
I ccrding TO previous agreement with agents
/ of the carriers These concessions in rates
were not granted &c all shippers. and the
( carriers allowed larger rebates TO some OF
the favored shippers than 10 others.
Immediately after this an inquiry was
I instituted al Portland. Ore, in relation 70
/ violent fluctuations in freight rates be-
tween North Pacific Coast points and
points on and east Of the Missouri River.
The proof established that secret rates
, generally prevailed on freight between
! those points and that the transportation
Ia A..
chants who disregarded the law had an
advantage over those who confCrmed Ia
the statute which often amounted to more
than fair profit On the commodities in
yolved.
Specific transactions and names OF par
I ticipating parties were net disclosed at this
hearing CT the one held il ST. Paul. Wit
nesses declared thai they kept no account
of these irregular transactions other than
loose memoranda, which they destroyed
when the rebates were paid. Accounts in
the possession OF Witnesses prior to the
! hearing were destroyed as soon aS they
learned that the Commission had insli-
tuted the Investigation. The witnesses
were unable TO recollect any particular
shipment or the amount of any rebate
which had been paid.
These and other Investigations made
by the Commission indicate the payment
of unlawful rebates by many carriers sub
ject 10 the act. and there is also ground
for the belief that such disbursements are
frequently so adroitIy covered in railway
accounts as 10 escape detection by the
casual examiner.
An investigation held al Savannah dis
closed that one of the largest concerns
engaged in the petroleum and tIrpentine
trade had built a large number OF oil tank
cars CT $500 gallons capacity, but had GER
t!fed 10 the carriers that the capacity of
such cars was 6,600 gallons. This was ac-
cepted and acted upon in good faith by
the carriers. The result was that this
| concern had 500 gallons % 500 pounds) OF
turpentine carried free in each tank car.
and ii had made very large number OF
consignments during the current year. The
1 turpentlne shipments originated in the
South, and were chiefly destined North
from whence they frequently returned
loaded with petroleum for Southern cities
Rates on coal from mines in West Vir-
ginia and Virginia to Cincinnati were the
subject of an inquiry held at Washington
in November The railway company car
ried ccal for much less than its published
rates, and in fact rendered the service for
most. If not all, of the coal shipping in
terests under rates provided for in writ.
ten contracts with shippers or which il
hNed from time 10 time upon special ap.
plication."
The urgent demand made by the carrier.
! for legislative relief following the decis.
ions of the Supreme Court in the Trans.
MISSOURI and Joint Traffic Association case!
is noted, and the Commission then pro
ceeds TO discuss the nature and function:
OF railway traffic organizations and tn,
origin and growth of such associations.
Substantially all competitive railwa,
traffic in the United States is believed Il
have been covered by about eleven of thes,
/ association the time 10 opf IN
commerce took effect. In each of thes,
. combinations the pool was the vitalizin.
, force, the sanction of the contract TIL,
results obtained from such application O
the pooling principle TO the act were no
t satisfactory. Rates were not stable III,
grossest determinations existed. rate war
were frequent. and il was largely this con
dition which railway combination had fail
, ed TO cure that induced the passage of tha
statute. The. act prohibited pooling, bu
the need for common understanding as t,
competitive charges still existed and wa
emphasized by the requirement in tn
law for publication of rates The asso
Citations were perpetuated in one form O
another, and at the time of the trans Mis-
souri, decision about nineteen were in op
Grafton.
The cardinal purpose of traffic associa
tions is restraint of competition betwee,
rival lines and their object has been i,
every instance to substitute the will of tn
association for the will of the indiyidua
member" This, the Commission insists
should be carefully noted in considerin,
the legislation sought by the railroads
They are asking, not simply the right /.
form such organizations as they formed i,
the past. but to make contracts which ar
illegal and unenforceable at common law
independent of statutory prohibitions. Th
| want of legal sanction was aIwavc tho in