The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-04-17
GREAT SAVING
TO UNCLE SAM
Excuse of Secretary Hitchcock for
Taking Rebates.
RAILWAYS WERE WILLING
ANOTHER COURSE WILL NOW BE
PURSUED.
lspeciaI 10 The ReraldN

Especial to The Hcrald0
lkI ASHiNGTON. d c.. April 10
w The controversy between the
comptroller of the treasury
and the secretary of the interior
IN reference to rebates made by
railroad companies ON freight charges
for the material shipped for use in
irrigation enterprises has taken ON a
personal aspect. The decision of the
comptroller and his advice TO the SCI
rotary Of the interior was given 10 the
public press and made public before IL
reached the secretary OF the interior.
The suggestions OF the comptroller TO
/ the interior department partoOk Of the
nature Of a lecture, which the secretary
( Of the interior apparently did not rel
isE. He resented the imputatiCn that
he was violating the law against the
acceptance of rebates, and has referred
the whole matter TO the attorney gen
crdl for his opinion
HitChcoCk's Views.
The views of the interior department.
as expressed boy am officer OF the recla-
nation service Ola this question, are as
follows.
I sA'Fhe reclamation service. in carrying
/ 49, the provisions of the national irri-
/ sSuon law, * striving to obtain the
best results for the least money con-
sisteut with good work But I'm its very
Z uiSL attempt 10 Minimize the cost OF
Z irrigation work the service finds itself
/ accused Of violating, or encouraging
/ violation, OF the anJi-Tebate provision
/ of the Interstate commerce law \
! study Of both sides of the question
] leads to the conclusion that the recIa-
/ NATION service is uujustly accused
; Technically the service may be subject
/ to criticism, but for all practical pur-
/ poses II Is above censUre.
Saving of Millions.
/ After repeated conferences with
/ prominent railroad officials. the rerla-
I nation service received assurances
/ from all the great railroads of the west
/ that they would carry government sup
/ plies for use on irrigation projects ar
+ Cne-haif their regular rate. and would
/ make like concession on Iqachjaery
/ tools and everything else going to make
/ up the plants of contractors who are
1 or may hereafter build government irri-
I CATION works 1t is estimated that
/ such concessions from the railroads
1 mean a saving to the government Of
( approximately 10 per cent Of the cost
/ of each and every project. and i'm the
/ end viii mean saving OF many mill
! lions OF dollars
Contractors Did Not Profit.
In the application Of this agreement
J the reclamation service called forth
! criticism from the comptroller Of the
treasury. though the comptroller was
frank enough 10 admit that his critic
/ ism amounted TO little. as he was not
/ the proper official To consider the mat
ter Acting under its agreement with
! the railroads. the reclamation service.
/ iU inviting bids for reclamation works
/ called attention of bidders TO the re-
4 duced rate which was offered for trans
/ porting supplies of government con
( tractors. with the result that bidders
made prOpOrtiOnaUe deductions from
/ their bids. equivalent To the reduction
i'm freights The saving was TO the
government the contra CtOTS did nor
. profit nor did the railroads However
this practice was condemned, and has
. been abandoned
Will Get the Rebate.
But 20 attain the same end. the re
ClamatiOu service viii hereafter Dur
sue another course, which is clearly not
\ violation of the anUi-rebate law since
there is "a statute permitting the trans
pOrJa ton of government property free
or at reduced rates Ia The future bids
for work on government reclamation
projects viii b. invited in the usual
way. regardless of the concession which
the railroads are willing TO make. con-
tractors viii pay the fun price OF trans
pOrtatiOU to the railroads. and when
the freight bills are paid the railroads
Will repay direct to the secretary OF the
interior Oue-haIf the freight paid by
the contractor This VIII not be a re-
bate to the contractor. but viii be
purely q reduction in the cost OF trans
pOrtatiOu of machinery. etc. that IS
virtually the property Of the govern
/ ment while work is in progress 1t Ia
I stipulated in every contract made for
/ construction work that the machinery
I and plant employed shall remain avail
able until the completion Of the work.
and If the contractor fails. the govern
ment viii have his plant and VIII be
able by this means. with its own men.
/ TO complete the work that the contract
or failed to perform.
Moral Aspect of the Case.
There are technical details involved
1 in the pending controversy which are
yet to be worked out, but underlying it
. all are paramount moral questions
which Will have to be considered
The reclamation service, in seeking
to reduce the cost Of building irrigation
projects is seeking to benefit the set
( tier The price which the settler pays
for water right is governed by the cost
Of constructing the project. Every dol
: lar taken off the cost of construction IS
so much taken off the cost which the
settler must pay. The concessions
- which the railroads make on the trans
, pOrtatiOn OF construction plants are
made i'm the interest of the settler. The
government does not benefit; the rail
roads certainly do not benefit; the con-
r tractor does not benefit. the entire gain
is to the future settler on the land
: Railroads Were Willing.
The railroads are willing to make
} / these reduced rates for q very evident
reason. BY cutting rates on transpOr-
. / tatiO8 Of machinery. etc, they make
= / possible the construction of some DToi-
q ! ects that might otherwise be abandoned
because of excessive cost Further
O. more. by aiding the government in this
a way they are helping along the early
9 / construction OF irrigation works. which
/ le Of -
acres OF lands tributary to their lines
- ! These lands are now barren. they yield
| no freight when they are irrigated
| they mean enormous business for the
= | railroads. SO, while the railroad re-
= | ceives no immediate benefit, II will III
timateIy recover every cent IL pays into
% the reclamation fund in the way Of re-
| bates on supplies, etc, for these irri-