The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-04-11
ACCEPT REBATES
Z Il t ~
FROM NJ :|.|| RAILROAD. |. n D
Interior Department Insists on
Pursuing Course Declared
to#be Illegal.
OPINION Of coNp7Ro LLER
Declares Practice Is Unlawful
OPINION Nj Of !'l; COMPTROLLER i
Declares Practice Is Unlawful
and Suggests Action BY At
torney-G General.
s77F7I v 81 n l7I-.9 - = IIL4 7lf77
9 f(By Associated Press.

WASHINGTON "A pril " 1o-The Comp
troller Of the Treasury has rendered a
decision, In which he critlcises the pro-
posed action OF the Secretary OF the In
terror in accepting rebates from the
Southern Pacific Railroad on freight Of
contractors engaged in work in the West
under the Irrigation and reclamation act.
The Comptroller, in the course Of his
reply TO IA commune cation from the Sec
retary 1.-The subject, says:
"If i may be permitted to- express Y
an opinion as to th1 legality OF such
transactions. when considered In rela-S5
\ ton to sections two and twenty-five of &
the interstate commerce acts Of Feb
ruary 4 1887 and 1883. would say
that at is extremely doubtful II either
can te maintained. .s BY what aut hor-38
sity the government ca n gcontr with Is
III; q railroad 8 that IA 4 contractors plan II
shall recaive "a. rebate in ssfreights nos
applicable to other shippers, IS beyond \
my compreh hensio n. Il E this right ex-$
= tsts,6 1t might as well extend to- hour,e
z hay and other onimodlt ties, and the D
vehicles used by a contractor in M ak
ing delivery to the government But.
granting such rig h L exists; when co " "
cred by contract, Ss and such rebate !.
taken into consid lon when5the con-
tract is made, bylv'hat stretch Of au--ss5
thority5 oan 4+tho government step in
where the ontract between 1t and
the contractor has been entered into,
anu, the amount to- be paid for the
Il work II or$ forRthe work and the amat te-E
rials5$isk kflxed and sliquidated,. and re-9
h ceiye Or "a Ike from the price because 4
OF a railroad re bate, Is beyond + my m 2
comprehension. SIS IA
..rThe governmen at, y above all others.
should not be a party to violation OF
either the letter or spirit OF the 8
& interstate commerce act as regards the
question OF rebate. It should not ~ -5
order that a saving OF a few dollars
may be had, especiallys&w when this
saving results In the tearing down of a z
law which experience proves very dill
cult, IL not absolutely impossible, to
Il enforce'l " W.
The Interior Department replied to the
letter, insisting on the legality Of their
proposed action and stating that the
rebates 4; In question proba bly, n would
amount to a million dollars in the next
seven years. In the course Of his re-
sponsc to this letter. the Comptroller
says that the amount OF these rebates
being large is a cogent feason why the
should make no mistake by
being party Or a beneficiary Of the
violation. OF tho law prohibiting the CIV
ing Of discriminating rebates. He then
says: @
For the above reasons, and many
others which might be urged, II you will
the suggestion, advise that be-
fore you take rebates from railroads on
the carriage OF property belonging to the
government contliac tors shipped by them.
and paid by them at tho regular rates,
that you lay all the facts before the at
and procure his opinion
MS to the legality of such transaction,
Let mo repeat. attach no special sig
to the willingness OF the rail-
roads to grant the rebates in question: