The Washington times., 1905-04-19
ASKS INSPECTION
BY GOVERNMENT
MoraWetz Thinks 1t Would
Solve Rate Problem.

The sessions of the Senate Interstate
Commerce Committee, now conducting
its recess investigation into the railroad
freight rates, began today with Victor
Morawetz, the New York corporation
attorney. still on the stand for the pur-
pose of answering any questions put by
the Senators.
In the absence of Senator Elkins Sena-
tor Cullom temporarily assumed the
chair.
Referring to the question of rebates,
Senator Dolliver asked Mr.. Morawetz
what he thought of the proposition that.
as soon as a railroad was discovered
giving a secret rate, the roads entire
business be put by an order Of the Inter
state Commerce Commission on the
basis of the rate, thus secretly allowed.
To this Mr.. MorawetZ objected by say
ing the highest managers, such as the
president and directors. of the railroads
are not responsible for these rebates
1.-The traffic agents, through overzeal,
he said give these secret rates in their
anxiety to promote and increase the
roads business
so you think it would be unjust TO
go on the proposition quoted?" asked
Senator Dolliver.
sIn some cases." he replied. 'it might
be just, while in others it would be un-
lust to use such drastic measures
Inspection by Government.
"You suggested a system of Govern
ment inspection of the conduct of rail-
road business" continued the Senator.
Would you confine that 10 specific cases
of suspected rebates or have regular
quarterly Inspections"
Either would do, but the quarterly
inspection would mean a vast amount OF
| labor for the Government.
| Asked whether he had said it was Gus
/ tomary for the railroad managers TO get
together and decide what rates should
ne charged to points in which they were
| interested, Mr.. MorawetZ said no con-
tracts were made by the roads on such
| points, but 1t is necessary TO have some
| understanding what the roads are solnG
! TO charge for such hauls.
| They had a talk" he said, land came
| to an understanding.
Cheap Hauls to Cities.
| What remedy have you," asked Mr.
Dolliver, "for railroads giving cheap
hauls to big cities. and injuring the
business of smaller places by higher
rates. even for shorter hauls?'
There is no remedy. he admitted
| but qualified this by saying the difhcuity
! could be obviated by the railroads
making binding agreements on the cues
/ ton of long-haul rates.
| Mr. Dolliver suggested that Congress
,, might help things by fixing a ra{s
schedule and Mr.. Morawetz agreed
that such action might improve The Stu
alton to some degree.
Asked his reason for the failure OF
| the laws against rebates and secreI
rates, ne said it was due 20 the fact
that the Interstate Commerce Commits
sion hadn't strictly enforced the laws.
But how can they enforce them
when, according to your own testimony,
the rebates are so very secret?' asked
Mr. Doiliver.
Some of them are not secret" said
the witness.
Asked about the secret rebate accusa-
ton against the Atchison, Topeka and
Santa Fe railway, of which he is gen,
eral counsel. Mr.. MorawetZ said that
when the present management found
that the Atchison road held some oi
the stock of certain coal mines it de
citied to- lease TO outside parties all its
coal mines so that no complaint could
be made against the Atchison road b.
other coal mines, which was qInavoid'
able If the railroad had continued tc
hold the coal mines
The witness also emphatically denied
that his road had paid 'over 81, 100000 il
rebates to the Standard Oil Company II
Kansas" as had been published in tht
newspapers
Senator Clapp then took the witness
who, in reply TO his questioning, sait
he believed Congress had the right L
| gfya the Interstate Commerce Commits
sion the power to determine their max
| imum reasonable rates, lin a given IN
stance
"Could Congress pass law fixing th'
schedule of rates in interstate com
merce?" asked Mr. Clapp.
IT think it could, consututionally,
| said Mr. Morawetz.
Il think. however" he added. that il
| is a different matter to give the courts
! the right 10 fix a future rate
The committee here adjourned fol
! lunch. Senator Elkins asked the com
mittee il a photographer, who had re-
ouested the privilege, might photograph
! the group Senator Clapp got up anC
left the room and the picture taking was
declared off.
! Mr.. .MorawetZ Is still on the stand this
afternoon answering the committee
questions on the legal aspects of tn.
| situation.