New-York tribune., 1902-01-24
RAILROADS AND THE LAW
THE INTERSTATE COMMERCE COMMITS
SION ASKS ENLARGED POWERS.
UTES BY TRAFFIC OFFICIALS CHARGED
FREIGHT RATE DETERMINATIONS

DELIBERATE VIOLATIONS OF THE STAT
UTEs BY TRAFFIC OFFICIALS CHARGED
FREIGHT RATE DETERMINATIONS.
Interstate Commerce Commission made public
to-day Referring to recent Investigations into the
movement of packing house products and Of grain
and grain products the commission says that the
facts therein developed of such character
that thoughtful person contemplate them
with Indifference That the leading traffic officials
OF many Of the principal railway lines, men occu-
pying high positions and charged with the most
important duties. should deliberately violate the
statute law OF the land. and In some cases agree
with each other to do So that 1t should be thought
by them necessary to destroy vouchers and go 70
manipulate bookkeeping to obliterate evidence or
the transactons that hundreds of thousands OF
dollars should be paid in unlawful rebates to a few
great packing houses that the business OF railroad
transportation. the most important but one In the
country to-day. paying the highest salaries anq
holding out to young men the greatest induce-
ments, should to such an extent be conducted In
open disregard of law, must be surprising ana OF
fensve to all right minded persons, Equally
startling, at least the report continues Is the ract
that the owners of packing houses, men whose
known throughout the commercial
world. should seemingly be eager to augment their
gains with the enormous amounts of rebates which
they receive IN plain defiance of Federal statute
I'VE certainly believe" the report says. that ex-
listing laws should be amended that railway
managers who desire to observe them can DO SO
without risk OF sacrificing their property. But we
believe that the application Of this remedy Is
fraught with certain dangers, and that 1t should
not be applied unless the public s fully protected
against those consequences. and that the public, az
well the railways, and more than the rail-
ways, requires at the present time adequate pro-
lection; that in view of those great combinations
which have been formed and now forming by
which railway competition, which upon the present
theory of this law is greatly relied upon TO secure
iIlt and No and sutn ha
largely eliminated. some method should be provided
by which the government can exercise IN fact that
control over railway rates and operations which
courts without number have asserted that It pos
sesses. and which many persons suppose that 1t
now eNerts. The commission believes to-day, as II
has IN the past, that this whole law should be
vised upon some correct theory and some workable
basis"
EFFECT OF DETERMINATIONS.
The following conch sions stated:
Flrst-At the present time grain and grain prod
SeTs move % from point OF origin TO the seabosrd
Of thai portion which is exported; and In the main
made OF or eomd be- MADE 10 aset
SRSst ana domestic & in applying the cut rate to
do attempt TO maintain a distinction from that
point snton5ars1 upon all rail- rail grain e i A..
crminate in favor of the foreigner, to give prefer
ences TO particular shippers to exclude from bust
that this is always the result or that such result
mission has previously held that Under certain com
dtions an export rate lower than the domestic
rate Is proper. 1t may be true that In the future
commercial scheme the small dealer can have no
erences ought not TO Contribute to that end and
until there is published which is accorded 10
mine whether the rates enforced Just unjust.
Ihira-Ihese rate determinations initiate against
great american industry To an extent the rate
upon Hour to the foreign market must be higher
conditions which statute and no commission can
alter To that extent this industry must expect to
a disadvantage ms n
ent DETERMINATIONS are unnecessary; and here
are Just or unjust until Il is rst known what rate
this trafflc actually bears.
sity for such changes In the present law as Will
secure the maintenance Of the published rates.
In regard TO proposed amendments OF the Inter
state Commerce law, the commission says:
While 1t was undoubtedly the intent Of the tenth
corporation Itself under its peculiar phaseoIogy G It
has, however. been judicially determined that the
punished. Now. the object OF rate cutting is 10 get
any one prohts by the illegal act II Is the real
offender: and ought certainly to pay the penalty
the representative or empioye ony should be liable
no @ while the the real oender the cor
action, is not II every Illegal OF that charac
ure. that the money result OF the transaction
was likely 10 be the other way, the indgcement 20
The act REQUIRES carriers TO publish interstate
tenth section construed by the courts does not
punish otherwise than by a possibly nominal fine
a departure from the published tariff unless there
Is actual discrimination between shippers To con-
vict for paying rebate II is necessary TO show
not merely that the railway company maid rebate
to particular shipper, but it also be shown
shipper with respect TO the kind OF traffic
moving at the same time under similar conditions
AS practical matter this is almost always inn
possible. For this reason prosecutions otherwise
sustainabie can rarely be successful; and this is
particularly the where there Is an extensive
Generalization OF rates, and consequently the great
est need for the application of criminal remedies.
Departure from the published rate Is the thing
which can be shown and the thing which should be
visited with fitting punishment
The criminal provisions of the law should be
further and generally amended with the View OF
removing their antiquities and giving 70 those
provisions the strength and enforcibility which
comes from definiteness of statement
The twentieth section should be amended so as
10 open the books of the carriers the inspection
| OF the commission or its agents. Such publicity
would be Of the greatest service In exposing and
furnishing illegal practices OF this kind and il is
to be permitted, provided proper restrictions are
| put upon the use to be made OF knowledge thus
| obtained.
These amendments would afford any salts
| factory system for the regulation OF Interstate
| railways, but they probably would stop such gross
| inftactons OF law as now frequently occur.
| We wish sttl further TO suggest that If the
powers OF this commission not 20 be generally
enlarged, some method should at least be devised
| by which such orders as it can make may be en-
| forced within reasonable time.
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