The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-04
.STICKNEY SHOWS
BROKEN RATE LAW

Points Out Methods Used by
Railroads to Evade Inter-
state Commerce Law.
Washington, Feb. "A. B. Stickney
Of St. Paul, Mimi, the president of the
Chicago Great Western railway, de-
ivered an address last night on the sub
ject Of The Defects of the Interstate
Commerce law before the regular
monthly meeting Of the Washington
Economic society.
Nj. stickney pointed out in consid-
cradle detail what he regarded as the
defects in the law and was listened to
with close attention by an audience
identified with economic interests.
Among those in the audience were
commissioners Knapp, Prouty and Glenn
ents of the Interstate commerce commits
sion; Senators Nelson and Clapp of Min.
nesota and Representative Burton OF
Ohio.
Mr.. Stickney commenced his address
by remarking that !'Prior to the enact
ment of the interstate commerce law the
government exercised no supervision
over interstate railway rates. =.
Laws Most Serious Defect.
Gas all the purposes Of the law re-
late to the schedule Of rates. said Mr..
Stickney, Sand as none OF the purposes
can be accomplished without schedule,
!. it seems evident that the most serious
defect in the law is it's failure to author
ize the commission to make schedule
of interstate rates.
After discussing the principa! objec-
lions which were raised at the time the
law was passed against comforting sven
authority upon the commission, Mr.
Stickney said: -..
In considering this matter, it should be
| understood that the commission would
not make separate schedule for each
railway. The practice of each company
making its own schedule Is the chief cause
of the present confusion in interstate
rates, because there are as many opinions
upon the details of schedule as there
are men engaged In making schedules.
e-schedule'' Plan.
The evident advantage Of only ono
schedule, to be consulted by shippers and
traffic officials, in order to ascertain any
desired rate, instead Of having to consult
the thousands Of separate schedules which
now exist, would be one of the greatest
benefits which it is possible for any leg
TO confer elLIler upOIl LuS SO4Apo-
MES or the public.
In case the rates made by such a COM
mission would produce a perfect schedule,
but If the errors on the schedule were
practically inconsequential, it would be
the duty Of all parties to submit.
In case the rules made" by such COM
mission are so unreasonably low as to
practically destroy the property on the
on hand, or so exorbitant as to be in dis
regard of the rights Of the public on the
other hand, there is an ultimate remedy
| for the parties aggrieved in the courts for
the relief against such oppressive rates.
by bin in chancery asserting their un-
reasonable character and their conflict
with the constitution Of the United States
and asking a decree forbidding such rates
Therefore, the rights of the public and
the rights Of the companies in regard tc
the rates which would be made by sucf
a commission are as perfectly safeguardeG
as it is humanity possibly to safeguard
such rights.
"Unsophisticated'' Suffer.
but quote the language Of high au
thority when I say that prior to the in
functions Of the: courts against paying re-
bates st was understood among business
men that schedules were made for tn
! small shippers, and those unsophisticatel
enough to pay the established: rates"
Since the injunctions the exact knowl
edge of the traffic directors has been ex
erted in the extremely difficult problem q
> how to pay rebates without paying IRE
bates"
Nothing short Of exact knowledge ca
do it. Hence since the injunctions, tn
traffic directors have stopped paying re
bates on grain shipments, but in lie
7 thereof have paid elevator fees, a practic
which tho interstate commission has sane
toned as admissible under the law, not
, withstanding it is evidently rebate PAL
8 to elevator owners which is not availab]
: to ordinary shippers. -
D The traffic directors have made secre
j.. contracts with the traffic directors {
D large shippers at rates below the schedu
rates, and having thus secured the tor
q mage in advance. they publish schei
J. ule containing the contract rates. In tt
! parlance Of the profession such schedule
a are called midnight schedules" and ha,
= all the effects Of secret rebates.
;. No small dealer can secure the adval
a tages of midnight schedule because
! does not control a sufficient volume
a tonnage to induce the making Of such
! schedule, The small dealer must pay II
- regular schedule rates, but it is not
with the large dealer.
The large dealer. say In grain, agre
with the traffic director Of a railway til
q he will buy in competitive territory
a million bushels, guaranteed. and, if po
r. sible, before the game is discovered, TO
It or five million bushels, provided that aft
e that he has secured the grain the railw,
l. company will publish a legal schedule r
if ducing tho rate. say cent bush
a With the advantage Of this secret unde
Il standing the large dealer forces the sm
dealers out Of tho market by offering
fraction Of a cent more than grain
worth, or induces some of the small des
a. ers to contract to deliver the amount
Il requires. - ~..'. -.
(, l It Is a 'slick'' Plan.
a. Having thus secured the grain,
u midnight schedule Is published and fill
~ with the interstate commission. The re-
=. goes down 1 cent and consequently
= price of grain advances cent. The res
of the transaction is that the small deale
are driven out Of the market, or that t
small dealers who have made contra,
are saddled with losses which the lar
=. dealer pockets as profits, and the railw
- company secures a large tonnage Of CO.
: petitive traffic. .-sG
It Is q slick way Of turning small de
ers' losses into large dealers profits, /
as the law now stands, the lawyers ag!
that 1t Is lawful
These legal midnight schedules VIII,
are Of frequent occurrence and result
greater injustice than secret rebates. ILL