The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-22
REASONABLE RATES AND FRAUD.
ULENT REBATES.
The Views OF the President OF the Nor.
folk and MeMern Hallway COMPANY.

From an address before The Roanoke Cham
Der NJ Commerce on May 10.
In the depression OF 1890 rates reached the
lowest point ever known. namely. .7c4 cents
per ton per mile. In 1903 the mlelge rate
was .7s3 cents. The increase, therefore, was
merely oSo cents. thirty-nine thousandths
of a cent thirtynlne cents per ton for n
thousand mles--or about fire per cent. This
was far less than the general increase of
prices recent report of the Department
Of Labor on the subj ect OF prices mo. 81
shows that taking 100 as the average of prices
for the period from 1890 to 1900, the price OF
all commodities in 1902 stood at 1929. or IL o
per cent. dbore the average of the preceding
decade. Applying the same treatment to
railway rates, they stood in 1902 at 9o2 CT
nine and eight-tenths per cent. beiop the
average OF the preceding decade. Mean
while the cost Of operation had increased.
taking the Norfolk and Western Railway
Company as an instance from slightly less
than eight millions in 1899 to approximately
fourteen and quarter millions In 1901
Comparatively speaking. the advance in
freight rates has been less and has proflted
the employees and the investors in railroad
securities less than the advance in prices
of other commodities and service during the
same period. 1T Ia so manifest that all persons
including the emf l)yees of the railroads and
the investors in railroad securities, should
SHARE III tuc pTORTeSS ana prosperity OF tne
country that no further argument than the
unaided statement Of the facts seems to be
necessary TO Show that the suggestion. If
made, that freight rates have been unrea-
sOnably advanced is in general without
shadow Of justification.
Without doubt there are in existence now
and always have been and always will he
rates in particular cases which are unrea-
sonably high and others unreas onably low
nuIp bv he ,vhipb
human frailty is never free But these
errors are readily corrected ard the wrongs
easily redressed by existing machinery, for.
AZ we have seen. in ninety per cent. Of the
cases where redress Is sought rcli of Is afforded
either voluntarily by the carrier after con-
ference or through the medium of the ! inter-
state Commerce Commission. In last resort.
the shipper may h!iitself apply to tho courts
and obtain redress n the promptcst possible
way without the aid Of the Interstate Com
MERGE Commission. or the commission may,
in the first instance. apply to the courts and
obtain the needed relief and redress for any
rate abuse.
Permit me to add that vcsting in the COM
mission the power to \ rates will not reach
or even touch the evil Of rebates. already
forbidden BY stringent ard eminently proper
legislation. such as the Elkns act. The In
stances where this reprehcnsible practise
Is still being resorted TO BY few OF the weaker
lines are diminishing. but in any event. as l
have said. illegal rates can "a we'll be granted
or paid after rs before the power Is vested
In the commission TO tx maximum freight
rates. Rebates are illegal now. and the qUes-
ton whether the rate making power shall be
vestei in the Commission has nothing what
ever TO do with the matter of rebates. such
rebates are due to no defect or shortening
in existing law. but solely to the dishonesty
or weakness of the management of some
railroads, A rebate is secret and fraudu-
lent departure from the published lawful
rates and involves no question OF whether
the published rates are reasonable and free
from discrimination.