Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-03-26
NEW LAWS ''L0ADED"
Elkins Anti Rebate Bill At
tracing Attention.
AN IMPORTANT FACTOR
DESIGNED TO CORRECT EVILS AND
ABUSES AS TO SHIPMENTS.
Interstate Commerce Commission Be-
sieged With Requests for Informa-
ton as to Effect of the Act.

A great deal of interest is being mani
tested In the antitrust legislation which
was placed on the statute books by the
last Congress. The impression prevailed
at the time that the legislation was in
nocuous, that the trusts had nothing to
fear from 1t. Now it begins to appear
that some of the new laws were loaded.
AS shown in The Star yesterday, the bu-
reau Of corporations, the establishment of
which was part of the new legisa alton, is
worrying the trusts The prompt appoint
ment of additional law officers to handle
trust cases seems to indicate a tendency
on the part of the Department of Justice
to get busy in antitrust litigation All
around there are signs that perhaps the
work of Congress was not so futile after
all.
The E1kins Bill.
The Elkins anti-rebate bill is attra citing
attention from shippers and common car
riers, and the interstate commerce commits
sion the branch of the government having
direct jurisdiction of this act and it's en-
forcement, is daily besieged with requests
for informant ;ion concerning the purport and
possible effect of the act
When the Elkins bill was passed II woo
the subject of considerable scofffne Inv
skeptlcal persons who declared that the
only thing the bill accomplished was to re-
heve railway officials from the penalty of
Imprisonment for violation of existing law.
1t is developing, however that the Elkins
bill was loaded.
The Elkins act was designed to correct
the evils and abuses growing out of the
system of the granting of rebates nv rail
ways to favored shippers 1t was regarded
as a factor of antitrust legislation be-
cause one of the most valuable resources
or the trust is the advantage obtained from
railways in rebates for the transportatio
of it's products The most powerful weapon
possessed by the trust to crush competition
was this same advantage in transportation
rates. \ The interstate commerce law and
its amendments were aimed at the rebat te
system, but were not effectual The Elkins
bill was drawn to perfect the law and to
cut off rebates.
An Important Factor Of Antitrust
In the opinion of high officials who have
carefully studied the Elkins act in it's bear
ing on existing law, this new feature of
antitrust law will prove to be a very i'm
portant factor in the regulation of abuses
out of which the trusts have prospered in
the past. The views of the effect and
operation of the law presented herewith
may be accepted as authoritative.
An exceedingly broad Interpretation is
ing rebates where the language is not
specific For example, it is held that the
granting of free pass to a shipper, prac-
tice which is widespread, is rebate, a
violation of law, and that the giver of the
pass and the shipper who accepts it are
liable to fine. Furthermore, that the free
carriage of goods, favors in storage, if
granted to one shipper and not to ALL con-
stitute rebates and violation of law.
In fact. the interstate commerce commits
sion yesterday issued an order to the trans
portation companies to publish in their
tariff schedules hereafter whether carriage
is allowed not.
The specific injunctions against rebates
carried by the Elkins act and which con-
stitute new law are regarded as important.
It is known of course, that the offer or
solicita ton of rebate Is made violation
of law. The effect of that is to appreciably
assist prevention of the granting of re-
bates.
Under existing law it was quite task to
make a case against railway company for
giving a rebate. Two parties to the deal
had to be produced, the giver and the taker
of the rebates and furthermore it had to be
shown that a third party was the sufferer
from the transaction. Under the Elkins act
it is a kind of hair-trigger arrangement;
the act is loaded and it goes off easily. If
the shipper asks a rebate, he is liable to
a fine; If the railroad offers a rebate, it is
liable to a fine. If the rebate transaction is
consummated, both sides are mulcted.
Corporation May Be Indicted.
The act makes the railway corporation
indictable, where hitherto only the railway
officials could be reached. This feature is
expected to produce good results by prevent
ing railway officials of competing lines from
shielding each other. In the past it has been
found difficult to reach the proper official
who could be indicted as the offender
against the law. Now they won't have to
look up the official but can indict the rail-
way corporation and fine it.
If a railway official finds that his rival is
getting undue share of business by
granting illegal favors to shippers he will
be inclined, it is argued, to assist in bring
ing the matter to the attention of the au-
thorities and putting a stop to it, In the
past railway officials would not testify
against each other where personal impris-
onment was likely to be involved. No such
computations need deter them now, for
only monetary penalty, to be inflicted
upon the corporation and not upon the in
dividual, is at stake.
ceedings by way of injunction against rail-
roads for departing from their published
rates. 1t makes the shippers, as well as
the carriers, parties to proceedings in court
or before the interstate commerce commits
sion. The willful failure of railroads to
publish their rates is made punishable by
a heavy fine.
The interstate commerce commission will
benefit by the new law to expedite the
trial of cases against the trusts and against
the railroads. 1t is said that from five to
of cases against railroads as result of
the legislation of the last session