The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1901-08-01
iNTERsTArE-coMMERcE
LAW IGNORED
lChIcago Inter.oceanl

cOmpliShment or It's CHIEF Ob19ct-the
abolition Of secret rate competition
by the railways
Three important meetings recently
of the highest officials Of eastern and
western railroads established the fact
that secret concessions in rates have
been made generally to the biggest
shippers. and that many roads have
entered into contracts TO transport
freight at cut rates until Dec. 81 next.
The easern railroad officials. at a
meeting in New York on July l2. de-
cided that these contracts, made in
violation of the interstate-commerce
law, should be carried out, with the
understanding that no more cut rate
contracts should be made, and that
all the roads should be permitted
to meet openly or by private settle
meat" the lowest rate that any road
had contracted make All the cut
rate contracts made by lines in the
Central Freigh association were con
fdentiaily filed with the chairman Of
the association. From these contracts
ht made compilation of the lowest
rates offered on all classes Of freight,
suppressing the names of the shippers
with whom the various roads had
made contracts for lower rates than
are given to the public generally.
In the territory between Chicago
and the Missouri river secret rate cut
ting was practiced to such an extent
tha on July last the Santa Fe sys.
TEN announced that on July Is it
would put into effect a schedule of
rates making a reduction of from 20
to 60 per cent on the various classes
Of freight.
That threat OF an open rate war
Immediately caused a decline in the
value Of stocks of the western rail
roads without delay orders were is
sued by those forming the "commun-
lity of financial interest" to the execu-
4 tive officers Of the railroads to restore
rates to a normal basis and keep them
there. The executive officers met here
and after a conference Of several days
reached an agreement on July 70 to
carry no freight at less than regular
rates after Tlly 90
Within a week several lines re-
ported that it would be Impossible for
them to cancel all cut rates on July
20, and the time for all lines to do so
was extended by agreement until Au-
gust g. Last Friday the executive Of
lioers again nc; here and, to the dis
may Of many of them, some of the
lines reported that it would be i'm
possible for them to abrogate reduced
rate contracts with certain shippers
extending to Dec. 81 next
In the face of specific orders from
Wall street that freight rates must be
advanced and maintained. the execu-
tive Officers could only adopt a res
olution to the effect knowing, how
ever the practical impossibility of
carrying 1t out, they added to the reso-
luton clause to the effect that if any
road found itself compelled TO pro
tect its rates those rates should be
made known to all lines for the bene-
fit Of their respective patrons
Summed up, the facts are that the
community OF financial interest plan
win probably prevent any more open
rate wars but for The remainder OF
this year, al least, secret concessions
in rates viii loe made by all the rail
roads to the heaviest shippers Of the
principal commodities.
The interstate-commerce law seems
no longer TO have any terrors for traf-
iic officials or big shippers, A MAORI
ty ot the managers OF railways declare
that rate discrimination in favor Of
tie largest shippers will continue un-
til law is passed enabling railways
10 pool their profits and divide them
according to agreed percentages. This
Is also the opinion Of Chairman Knapp
and Of other members OF the inter
state.commerce commission, but they
insist that, 70 guard against exces-
sive freight rates railway profit pool
ing should be under the supervision OF
commission appointed by the govern
ment