The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1905-04-12
GOVERNMENT TAKES REBATEs.
Mr.. TraceweII Crlticises Proposed 40
tlon Of Secretary Hitchcock.

tlon Of Secretary Hitchcock.
Washington, April 1.-THE control
Ter of the treasury has rendered de.
cision in which he criticises the pro
posed action Of the secretary of the
interior in accepting rebates from the
Southern Pacific railroad on freight
of contractors engaged in work in the
West under the irrigation and recla.
nation act In a communication to
the comptroller on March 20 last, the
secretary Of the interior says:
On Oct 13, 1904, the department
approved a contract with the Southern
Pacific company providing for certain
concessions to contractors under the
reclamation act in the freight rates
on their plant and materials shipped
to and from the work in projects.
Other contracts of similar character
since have been negotiated with the
principal roads. These concessions in
rates are brought to the attention of
all bidders on the We TX of the reclama.
ton service in ord r that they may
make due allowance for such conces.
sions in their bids"
The communication states that
Sherer & CO., contractors on the Salt
river project, sought to obtain the
benefit of concessions on some ship
ments soon to De made by them, but
that as these contractors made their
bids before any concessions had been
arranged with the Southern Pacific
company, so that their bids do not
provide for any benefit to the United
States, this office has decided that the
contractor is not entitled to such ben.
efits."
The communication goes on to state
that the railroad company, however,
is willing to make the concession in
case the benefits may be taken by The
government and credited to the pro-
ject.
The comptroller in his reply, says:
"If, may be permitted to exp 'ess an
opinion as to the legality OF such
transactions, when considered In rela.
ton TO sections 2 and go of the inter.
state commerce acts of Feb. 4, 1887,
and 1889, | would say that 1t is ex-
tremely doubtful If either can IN
maintained.
"The government, above all others,
should not be party to violation of
either the letter or spirit of the inter.
state commerce act as regards the
question of rebates. It should not en-.
gage in questionable transactions in
order that saving of few dollars
may be had, especially when this saw
ing results in the tearing down of
law which experience proves very
difficult, If not absolutely impossible,
to enforce"
The interior department replied, in.
sisting on the legality of It's proposed
action and stating that the rebates in
question probably would amount to a
million dollars In the next seven
years. The comptroller In response
says that the amount of these rebates
being large is a cogent reason why
the government should make no mis-
take by being party to or benefic.
iary of the violation of the law prohib.
itlng the giving of discriminating re-
bates
"The carriage, storing or handling
of property free or at reduced rates
for the United States is allowable un-
der section 90 of the amended inter.
state commerce act" said the con.
troller adding: Nothing short of car
rying property under a contract with
the United States for It's carriage in
any event in my Judgment, can be con-
sidered as a carrying of property for
the United States.
81 advise that before you take re-
bates from the railroads on the car.
riage of property belonging to the
government contractors shipped by
them, and paid by them at the regu-
lar rates, that you lay all the facts be-
fore the attorney general and procure
his opinion as to the legality of such
transaction, Let me repeat | attach
no special significance to the willing.
ness of the railroads to grant the re.
bates In question"