Daily press. [volume] (Newport News, Va.) 1896-current, 1905-04-11
VIGOROUS PROTEST. is MADE
Comptroller CT Currency Holds That
Government Should Engage in NO
Transaction of Doubtful Legality
Legal Because sum is Large, Argues
Secretary of Interior.
tBy Associated pressl

WHOlliNG YIN, IL. u, NOrll H.
The comptroller or the treasury has
rci.lcrcd n decision In which he crit;
ciscs the proposed action Of the secrc-
tary of the interior i'm accepting re-
hates from the Southern Pacific Rail-
road on freight OF contractors engaged
il work in the West under the irrlgn-
ton and reclamation act The comp
trollcr, III the course of his reply to n
communication from the secretary Oh
The subject. says:
IF may be permitted to express an
opinion as to the legality of such trans
actions when considered in relation to
sectIohs = and % of the Interstate
commerce acts of February 4, 1887, anil
1889. ! would say that it is extremely
doubtful If either can be maintained
by what authority the government can
contract with railroad that a con.
tractors plant shall receive rebate in
freights not applicable to other ship.
pers is beyond my comprehension.
Where Would Right End2
IL this right exists 1t might as we'll
extend TO flour. hay and other commo.
ditics, end the vehicles used by a con-
tractor in making delivery to the gov.
eminent. But granting that such a
right exists. when covered by contract,
and such rebate taken into considera-
ton when the contract is made. by
what stretch Of authority can the gov.
ernmcnt step in where the contract be-.
tween it and the contractor has been
entered into the amount to he paid FL!
tho work, or for the work and the ma
tcrias, is fixed and liquidated, and re.
'ceivc or axe from the price because
Of Il railroad ebatc is beyond my com
preht msicn.
The government above all others
should not he party To violation
of either The letter ur spirit of the in
lcr-statc commerce act as regards the
question Of rebates. II should not en
gage in questionable transactions in
order tia. r. saving Of a few dollars
may he had. especially when this saw
inS results in the tearing down of n
law which experience proves very diff.
tcIlt. I! not absolutely impossible tn
enforce"
Department insists on Legality.
The interior department replied 10
The letter insisting Oh the legality of
their proposed action and stating that
the rebates In question probably would
amount to a million dollars in the mex:
seven years.
In The course of his response to this
letter the comptroller says that the
amount of these rebates being large il,
a ccngent reason why the government
shoul: make no mistake by being Il
party or a beneficiary of the violation
OF The law prohibiting the giving of
discriminating rebates. He then says.
For the above reasons, and many
others which might be urged. If you
will pardon the suggestion, advise
that before you take rebates from rail
roads OH tie carriage of property be.
longing to the government contractors
shipped by the nj, and paid by them at
the regular rates. that yon lay all the
facts before The attorney general ami
procure his opinion as to the legality
of such transaction. Let me repeat, |
attach special significance 10 the viii!
l:Hsncss of The railroads TO grant the
rebates in question