Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-25
CAN ACCEPT REBATES
Attorney Generals Opinion
to That Effect.
SECRETARY HITCHCOCK
MAKES A STATEMENT ANNoUNC-
ING THE FACTS.
No Violation Of the Interstate Com
merce Act, Notwithstanding Con-
troller Tracewell's Views.
SECRETARY HITCHCOCK

The Attorney General has delivered an
opinion in which he holds that the Secre-
tary of the Interior Is acting within the
spirit and letter of the law when he accepts
concessions from railroad companies for
the transportation of material for govern
ment work. The Attorney General states
that 1t is expressly provided in the section
Of the Interstate commerce act relative to
rebates that the act expressly gives sane
ton to any arrangement between the
United States, state or municipal govern
ments and railroad companies that might
be made whereby those governments
might relieve themselves of the cost of
transportation in whatever form it might
assume
The action of the Attorney General sus-
tains the position Of Secretary Hitchcock
in every particular and is in direct opposi-
ton to the opinion advanced by the con-
troller of the treasury, who brought the
matter to light by an opinion, In Whlch ne
held that the acceptance of rebates by the
government seemed a violation of the spirit
of the interstate commerce act II 1t was not
a violation of the letter of the law. The
controllers opinion was advanced as his
personal ideas in the premises.
The Controllers Views.
The matter came to his attention through
! a communication from the Secretary of the
Interior dated March 20, in which the Sec
retary submitted a communication from the
acting director of the geological survey, In
which that official stated that in OCTOBER
last the department approved contract
with the Southern Pacific Railroad Com
pany providing for certain concessions 10
contractors under the reclamation ACT ia
tbe freight rates upon their plants and ma
teriaIs Other contracts OF a similar ndluie
were made with other railroads, and these
concessions in rates We're Drought " Inc
attention of bidders on the Work IN oruer
that due allowance for them might be made
In the bids The government expected that
such allowance would be mace. al
The attention of the Secretary was d.
rected to the case of Sherer q Co, con-
tractors on the Salt river reclamation prof.
ect who desired to be advised whether they
can obtain the benefit OF these faiiioau
concessions some shipments soon 70 pe
made These contractors made thelr plus
before the concessions were granted, SO
that their bids do not provide for any con
cessions whatever, and the o1ncers Oh INC
geological survey decided that the contrac-
tors were not entitled to the dement's OF the
concessions The controller was asked
what method should be used In dealing with
the matter In discussing the matter the
controller told Secretary Htchcock now
the matter could be arranged to get
through the auditing department OF the
treasury, and then states. gratis. his oplh-
ion of the acceptance OF concessions py tue
government, quoting the secuons VI me III
terstate commerce act. Conlrolef race
well winds up his criticism against the
practices of the department in the follow
ing manner:
1.-THE government, above all others should
| not be a party to a violation of either the
letter or spirit Of the interstate commerce
| act as regards the question of rebates. II
should not engage IN questionable transac-
lions in order that saving of a rev dol
lars may be had, especially when this say
ing results in the tearing down of law
which experience proves very difficult, IL
not absolutely impossible, to enforce