The Washington times., 1905-04-10
Breach of the Interstate
Commerce Law, Says
TraceWell.
DENOUNCES EVIL PACT
Scores Agreement Entered
Into by Secretary of
the Interior.

Secretary Hitchcock and Charles d.
Walcott, director of the Geological Sur
vey, as the agents of the Govern
ment, are parties to agreements with
certain railroads in the West, whereby
the Government is the beneficiary. Sew
eral hundred thousand dollars, perhaps
million dollars, will accrue to the
Governments credit If the agreements
are sustained in effect.
This the two Government officers in
volved claim is not in violation of the
law, although they admit the money re-
ceived is rebate.
The Government has under project the
expenditure of millions of dollars for
the development of arid lands in the
West. Already large number Of con-
tracts have been let,
Sought to Save.
Secretary Hitchcock and Director
Walcott, thinking they would save the
Government a pot of morey, entered
| into contracts with the Southern Pacific
and other railroads whereby the con-
| tractors would receive certain reduced
| rates on their materials.
In advertising for bids Secretary
Hitchcock took particular pains TO lei
| the contractors know they would get
reduced rates on the shipment of their
materials, such as tools, etc. The result
| has been lower bids, and the Govern
ment is the beneficiary.
| On March 20 the Secretary of the In
terror referred the matter of the con-
tracts with the railroads to Comptroller
| Tracewell, of the Treasury, and inform
| ed that official of the contracts entered
| into with the railroads.
After stating the facts, Secretary
Hitchcock in his letter asked the Comp
trolier ii the benefits of the railroad
concessions could be accepted and turn
ed into the general fund for the devel-
opment of the arid lands through tho
irrigation and reclamation service.
Goes After Secretary.
| Comptroller Tracewell went right after
the Secretary He said the transactions
| of the two officials with the railroad
| companies could not be maintained un-
| der Sections and 126 of the interstate
commerce act Of February 4, 1887, and
1889. He questions the right of the Gov.
ernment to make arrangements with G
| railroad company by which one class OF
able TO the general public.
! The Government above all others,
said Mr.. Tracewell, should not be
| party to a violation of either the lettel
or spirit of the interstate commerce
laws as regards the question of rebates.
Secretary Hitchcock was much dis
pleased with the decision of the Comp
| troller, and answered him to the effec
that Assistant Attorney General Camp
bell had uphald the position Of the Int
rior Departm INT.
This morning Comptroller Tracewel
sent his reply to Mr.. Hitchcock. He re
ferred to a letter of the director of tn
Geological Survey, transmitted by tn
Secretary to the Controller. In thi
letter the director said there woul
probably be n saving to the Govern
ment in the next seven years of 81 GOO,
900.
The amount of these rebates bein
! large is cogent reason why the Gov
, ernment should make no mistake b
. | being d party or beneficiary of tn
violation Of the law prohibiting tn
giving of discriminating rates." iter
: ates Mr.. Tracewell.
d Comptroller Tracewell closed his re
, ply by mildly advising the Secretary
submit the whole matter to the Attor
: ney General for decision before h
| went into the matter further.
D Just what the action of Secre
tary Hitchcock Will result in is nc
known. 1t is within the possibilitie
! that the President will take the matte
up and Investigate the rebate questio
with yigor