Omaha daily bee., 1905-11-21

The figures show that the St Paul rail
road paid only about half the amount Of
rebates in 1903 as the Northwestern rail-
road: il may be concluded that the St Paul
is therefore the more virtuous. But figures
are proverbially deceptive. 1t was found
that sometimes when one railroad frankly
paid cash the rival road had another more
secret, underhanded way of doing the same
thing. In one city there are two equally
important shippers in the same business.
One OF them used one railroad and
received large rebates; the other shipping
by the other road, apparently received no
| rebates But the investigators know that
the second shipper could not have done
business for a month in competition with
the first unless this great discrepancy in
rebates was somehow realized. Upon in
shutting inquiries they found that the local
! agent OF the second road was empowered
TO correct the way bill and deduct GER
tain percentage from every freight bill
presented to the favored shipper and to
forward the amount collected as the full
payment, taking the necessary credit in
the agents weekly report. BY this method
no discriminating evidences of rebates crept
into the books of the st. Paul road.
And now the Northwestern railroad has
chosen new methods, it is learning by eX-
perience. When the Wisconsin investiga-
tors began work, the Northwestern railroad
stopped paying cash rebates almost en-
! tirely; but Immediately II began to issue
a great many so-called "hektograph tariffs"
that is. rate schedules. not regularly
printed, and barely keeping within the
| fringe of the law, II they even did that
And the effect Of the hektograph tarff was
| to give certain shippers advantages over
others-exactly what the rebate did. Moth
! ing could show better the progress from
the crude cash rebate to the underhanded
device which acocmplishes the same end
| Another device shows how the passenger
/ and freight departments OF a railroad work
! together in giving rebates. II has long
been known that the favored shipper could
| often get pass not only for himself. but
for his entire family. This is of course. a
true rebate, for it saves the shipper just
so much money. But It is more or less
public, therefore undesirable. Accordingly,
one Wisconsin railroad, among others, has
| been employing a shrewder device. Ger
tain large concerns in Wisconsin who en-
ploy travelling men, purchase the ordinary
passenger mileage book, upon the cover of
7
road will refund $40. But it was discovered
| that I'm the case OF certain favored ship
pers, when the cover was sent back, the
railroad refunded $40 in the ordinary way,
and then afterwards and secretly they re-
bated the entire original cost of the book
or $50 In other words. these favored
| Wisconsin industries were able to send out
| their entire force Of travelling men with
out paying one cent Of railroad fare-while
their competitors paid full fares. A good
many business men OF Wisconsin do not
know, today, OF this insidious and despic-
able competition which is undermining
| their business. This article may give
| them the first news OF it!
I asked a prominent railroad official
| what, I'm his estimation, the greatest
single obstacle in Kidding the country OF
the rebate evil. He answered promptly:
The Industrial traffic manager"
When there are favors to be got from a
railroad company It takes an expert tc
get them. Accordingly. II has grown to
be custom-spreading more widely every