The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-10-28
K. K. MAN ENDORSES
RATE REFORM
President Stickney Says Government Rate Control Car
nes Out the "Square Deal' PrincipLe-GoDernor
Cun,n7ins Assails Stand Pat Tariff
Doctrines.

President A. B. stiekney of the Great
Western railroad and Governor A. b.
Cummins of Iowa were the principal
speakers last evening at the banquet
of the st. Paul Roosevelt club at the
Ryan hotel. President Stickney made
an able argument for government regu-
lation of freight rates, while Governor
Cummins eulogized President Roosevelt
and renewed his declaration for tariff
revision. Congressman Bede also spoke
briefly, and Judge E. A. Jaggard pre-
sided as POSTMASTER. About 800 were
at the banquet table. .-.g
''The President and the Railroads
was the subject of President Stick
ney's notable address. He began by
a discussion of secret rebates, saying
that "ever since competitive railways
have existed, the actual competitive
rates have been made by the rebate
system.' Under this system full tariff
rates are charged to everyone, but later
a portion Of the money collected is re-
funded to certain shippers, sometimes
$ per cent, sometimes 10 and sometimes
rs high as SO per cent. In the grain
trade large shippers, with the advan-
I'tage of rebate of l cent bushel,
have gone into the market and paid
half cent more for grain that their
competitors, thus getting the grain and
making an enormous profit. REBATES
are contrary to law, and it has been
necessary: Of late to use the utmost Sc
crecy. He gave the following illustra-
ton: ~
"Since the injunctions were issued
and the terrors of the law are consid-
cred IMMINENT have been told do
not vouch for its truth, altho | have
seen what purports to be a copy OF
the contract between the shippers and
| the routing agency-of cases where
| young men from so-called routing agen
cies in New York make periodical trips
| thru the western cities, leaving, not
bank checks, but packages OF actua
money, without note or comment, upon
certain merchants desks, taking nc
| vouchers or receipt.
! "Curiously, when these packages are
counted, they are found to be exactly
a certain percentage, supposed to- bt
25 per cent, of the amount Of frelgh
which such merchants have paid GER
tain railway company since the las
previous visit of the young man wh'
thus generously distributes hundreds O.
thousands Of dollars annually.s There !
mother of Cinderella, who could tur1
mice into footmen, rats into horses an
pumpkins into gorgeous robes, coul'
turn a beggarly salary Of $500 iron
each client into hundreds of thousand
of cold cash like modern routing
agency.
eff, perchance,, these hundreds o
thousands comes from the treasury o
a $4OO,OoO,OOo railway company, it
probable the company squares its cas-
thru 'yaller dog account, like
respectable insurance company.'
Under the evil rebate system, Pres
dent Stickney declared, no .merchan
was safe from RUM There was ono
combination powerful enough to con
pei the: railroads to: pay them a rehat
Of Is cents on 35-cent rate, not onl
on their own shipments, but on those
their competitors. The railroads al
powerless to prevent such things, an
only the law can prevent it's beirg don
again. To illustrate the uncertainties
business depending on rate change
President Stickney reviewed the hi
tory of the milling business in Mimi
| sOta saving: