New-York tribune., 1903-03-27
HIT BY THE ELKINS LAW.
CORPORATIONS UNEASY.
Belief That the Granting of Rebates
viii Be Stopped.
fBY TELEGRAPH TO THE TRIBUNE. ]


Washington, March 26.-There growing in
dcattons that tn Elkins anti-rehate la" IS
causing serious uneasness to some OF the large
corporal ations which have, preSumptiVely, "aAed
fat on the freight rebates they have wruns
from the railroads. For some time there mas
been an unusually large number of requests re-
ceived for copies of the law, and more recent
communications furnish evidence Of serious ap"
prehension on the part of the large shippers and
their attorneys.
While the federal prohibition against rebates
is by no means new, 1t has been, under former
provisions of the law, impossible to secure con-
victions. This is said to have been due to the
fact that imprisonment was provided as pen
atty for infringement, and made applicable to
the agents of the railroad companies granting
the rebates. There is strong bond OF Fellow
ship among the railroad freight agents or the
country, and when the more drastic provisions
Of the law prevailed 1t was impossible for the
Interstate Commerce Commission to procure evil
dence of the granting Of rebates. The friend
ship which the freight md traffic agents enter
tanned for one another proved stronger tnan
their loyalty to their respective roads
Under the Elxins amendments to the existing
law Imprisonment as a penalty has been abro-
gated and the corporations granting the re-
bates and the receivers are made subject to a
fine for such infringement. 1t is therefore be-
lieVed that the spirit Of competition between
freight agents will be. found strong enough TO
cause them to COOPER lte with the commission
when it Is desired to procure evidence OF a
custom which is actually unfair method or
procuring business.
It is even believed that where railroad agent
find competitor is securing an undue share OF
competitive business the former will take the
initiative and perhaps present to the Interstate
Commerce Commission the facts on which con-
victions n ay be secured. The Interpretation OF
the law by the commission appears to be the
strictest. The commission has ruled that even
extra favors in the way of storage or the de-
livery Of goods will be regarded rebate,
and an order has been issued requiring railroads
to announce in every instance whether or not
their published rates include carriage. 1t IS rur-
ther held that the issue Of passes to Shippers
will be held to constitute a rebate on frelght
charges. but this ruling the railroads themselves
seem glad to recognize. it Will doubtless mean
the saving of a considerable sum occasioned by
the sometimes inordinate demands for SuCh IA
vors from heavy shippers.
When the bill passage in the senate
Senator EIkins made the statement that the
railroads would not be inclined to oppose IT, as
it would save them far more than they could
possibly lose by it-that it was. in fact, further
protection against cut rates. Developments
would seem to bear out Mr.. Elkins's prediction
That the measure will be viewed with equal
favor by those trusts and corporations Whlch
have profted by rebates was not to be ex-
pected however and events seem to have de-
rnonstrated that many oc them are inclined TO
regard the measure as obnoxious.