The herald-advance. (Milbank, S.D.) 1890-1922, 1905-11-03

IN regard 10 leslSlatlOn relating TO rail-
way rates, the present system OF COM
petitive rates and the effects of the sys-
tenn must be understood.
1T is well known that ever since COM
petitive railways have existed, the actual
competitive rates have been made by the
rebate system.
The rebate system consists in collect
ing from all shippers exactly the same
full tariff rates. The shipments are billed
and entered on the books of both the
forwarding station and on the books OF
the receiving station at full tariff rates;
And these full rates are collected and
the money is RENTED to the treasury of
the company. And so far as the accounts
and records at both the forwarding and
receiving stationS-which are the only
records which are by any means aces
sible to the shippers-and so far as the
knowledge of the station agents goes.
everybody is treated to the full tariff
rates on terms of exact equality. In
no other way can the necessary secrecy
be maintained. Later, a portion OF the
money thus collected, sometimes . per
cent. sometimes 10 per cent, and some
times as much as 30 per cent, is secretly
returned to some of the shippers, but not
to all. And those who receive rebates
do not necessarily get the same percent
age
| prior to the establishment of the inter-
state commerce commission all the small
shippers had been driven out of business
by the enormou rebates given to the
large shippers in some cases eXceedihs
W per cent OF the lDltl tlliIStS.
The Was Good.
The interstate IN law, enacted
In 1887, was designed to correct the evils
| growing out Of the system of making
| senate committee, in explaining the bill
| when it was introduced in the senate,
said:
| upon the theory that the paramount evil
~chargeable against the operations of the
transportation system of the United
States, as now conducted, is unjust dis
elimination. The underlying purpose
| and aim of the measure is the prevention
of these determinations"
The law has been amended, and as it
now stands, stripped of all it's verbiase.
it provides:
That the railway companies alone shall
make the rates.
That schedules of such rates shall be
printed and published.
That as long as such schedules are in
force neither more nor less than such
rates shall be collected.
That such rates shall remain in force
and cannot lawfully be advanced until
ten days after, nor lowered until three
days after, new schedules are printed and
published. and
That the failure of the railway COM
pany to strictly observe such rates shall
be a misdemeanor, punishable by a fine
of not less than $1,000 or more than
$40, 600 for each offense.
1t also makes it a for
any citizen-using the language of the
9W-'tO SOllClt, accept OF receive any re-
bate. concession or discrimination in re-
spect to the transportation of any prop
erty whereby any such property shall by
any device be transported at a less rate
than that made in the tariffs published
and filed by the railway company" pun
ishable by a like fine of not less than
81. 900 or more than $1,000
RaiIvR VS. Big Advantage.
1t is true that the law provides that the
rates thus made by the railway com
panies shall be reasonable and just, =
but, whether reasonable or unreasonable
until the court decides that a rate is I'M
reasonable it is a misdemeanor for a
citizen ito solicit, accept or receive any
rebate, concession or discrimination
whereby his property shall by any de-
vice be transported at less than the pub
lished rate.
Experience has proven that this general
proposition, that all rates shall be rea-
sonable and just enforceable only by
the courts, is of little practical value.
During the thirty years in which the
subject of reasonable rates has been in
controversy in this state l can recall but
one case in which a citizen has had the
temerity to invoke the courts to enforce
the law. The case was carried from
court to court on appeals by the railway
company and was finally decided in the
citizens favor by the supreme court of
the United States Just five years after the
first trial. The amount involved was eX-
actly AZ cents.
When we consider that the whole vast
revenues of railways are collected in
f'''H 'N ho \S'N' ~
practically fifty or sixty dollars, rarely
more than 500, it will be readily seen
that no one individual would ever be
likely to have enough at stake to justify
a contest with q railwa- cornnany.
Everybody Is Mulctel.
Railway transportation enters into and
becomes a part of everything. 1T is paid
for, not by the shippers or receivers, but
by the consumers, without knowing when
and how much is paid. When one buys
food or clothing he paws railway trans
n0rtatiGn Whom one hlNS n tbantnr
ticket, employs a doctor, a lawyer, or
pays rent, he pays railway transporta-
ton. In short, it permeates everythin
and, like the air we breathe, no one can
refuse railway transportation and live.
Stating the gist of the law in a nut
shell, the railway companies have an alb
solute monopoly in its production, and
under the law fix the price upon that
which they alone can produce and which
every living man must consume, and the
law makes it a misdemeanor for the on
sumner to kick. Is this a square deal?'
Theodore Roosevelt says it is not a
square deal. GOV. Cummins, who is here
tonight, says 1t is not a square dead,
and every fair-minded man will say it Is
not a square deal.
1t is wrong in principle, but as long as
there are many competitive railways it is
of little practical Importance, because
unreasonable rates cannot be enforced.
But in twenty years, possibly in ten
years, there will be few; If any, ccompeti-
tive railways, atld it therefore becomes
important, while we can, to establish the
correct principle in the law, because
when ali the railways of the country
are brought under one control, having
hundreds of thousands of voters, who are
employees, having absolute owe to re-
ward and punish subserviency on the
part Of all occupations, and having an
unlimited "yallar dog fund. the ability
of the then congress to establish the cor
rect principle may well be doubted.
Law Not Enforced.
The interstate law had been
in existence, but not to any cOnSiderabl bic
extent enforced, about seventeen years.
and the evils of discrimination were still
rampant when Mr.. Roosevelt developed
his present attitude towards railway
rates bv that famous message to con-
gross. in which he said:
"Above all else, we must strive to keep
the highways of open to all on
equal terms: and to do this it is neces-
sary to put a complere stop to all rebates.
Whether the shipper or the railroad Is TO
blame makes no difference: the rebate
must be stopped. the abtse of the private
car and private terminal-track and side
track system must be stopped, and the
legislation of congress which declares IT
FL Aao$or , Ronn 70 Ireland