Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-01-23
! BIG REBATES ARE PAID
Railroads Have Grossly Violated
Interstate Commerce Law,
Says Commission.
Packing House Companies and
Big Grain Dealers Given
Unfair Advantages.
Millions Paid Them in Rebates
A Remedy is Sue-
6ested.

Z
6ested.
Washington. Jan. 2S.-The annual re-
port of the interstate commerce COM
mission, which was transmitted to con-
Uress today, renews the declaration in
previous reports that in its present con-
dition the act to regulate commerce can
not be enforced. AS to remedial legis-
iation the commission renews the state
ment made in its previous annual report
that it HAD little to suggest, and moth
ing new to propose" The feature of the
report is the almost sensational state
ment of the relations existing between
the railroads and a comparative few
heavy shippers. Referring to the COM
misdon's recent investigation into the
movement of packing house products
and grain the report says: THAT the
leading traffic officials Of many of the
principal railroads, men occupying high
positions and charged with the most
important duties. should deliberately
violate the statute law, and in some
cases agree with each other to do so:
that it should be thought by them nec-
essary to destroy the vouchers, and so
iiterate the evidence of the transaction;
that hundreds of thousands of dollars
should be paid in unlawful rebates to a
few great packing houses; that the bus
iness of railroad transportation should
to such an extent be conducted in open
disregard Of law, must be surprising
and offensive to all right minded per-
sons.
Equally startling is the fact that the
owners of these packing houses, men
whose names are known thruout the
commercial world, should seemingly be
eager to augment their gains with the
enormous amount of these rebates
which they receive in plain defiance of
federal statutes"
The opinion is expressed that existing
laws should be 50 amended that railway
managers who desire to reserve them
can do 80 without the risk of sacrificing
their property. Application of reme-
dy, the report says. is fraught with dam
gers to the republic and should not be
applied unless the public is fully pro-
tected.
In view Of those great combinations
which have been formed and are now
forming by which railway competition
will be 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 it
possesses and which many persons sup
pose 1t now exerts. The commission be-
lieyes the whole law should be revised
upon some correct theory and some
workable basis. Owing to gross viola
tions of the act the commission sug-
gests that if 1t is not possible to amend
this law in It's more essential features,
1t ought at least to be possible to deal
with those coercive features of the act
which are intended to prevent practices
of this. character. Referring to court de-
cisions that penalties can not be i'm
posed upon corporations violating the
act, and that only their agents can be
punished, the commission says:
'.The object of rate cutting is to get
business and make money and the CO.
operation, If any one. profits by the il
legal act It is the real offender and
ought certainly to pay the penalty, as
well as its officer. If every illegal act
Of that character subjected the carrier
to substantial forfeiture. SO the money
result OF the transaction was likely to
be the other way, the inducement to
commit such offenses would be greatly
diminished"
Taking up the difficulty of securing
N cases OF rate cutting. the
report says:
ITO convict for paying rebate 1t is
necessary to show not merely that
railway company paid the rebate to
particular shipper. but it must also be
sflown that 1t did not pay the same re-
bate to some other shipper with respect
to the same kind of traffic moving at the
same time under similar conditions
This is almost always impossible. De-
parture from published rate is a thing |
which can be shown and thing which I
should be visited with fitting punish
ment''
1t is urged that the twentieth section
should be amended so as to open the
books of carriers to the inspection of the
commission under proper restrictions to
prevent misuse of information SO obtain
ed Dealing with traffic associations the
commission states that the secret
"agreed" rates have been manipulated
thru these agencies, and says:
1T Is the business of this commission
to enforce the antitrust act, and we ex-
press no opinion as to the legality of the
means adopted by these associations"
and attention Is called to the fact that
the court decisions have produced no
practical effect upon railway operations
Of the country
FRANCE MAKES EXPLANATION.
Denies She Encouraged Intervention
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