Omaha daily bee., 1905-10-12
POLLARD ON FREIGHT RATES
Congressman from First District Addresses
Students Of University.
DISCRIMINATION is THE GREAT EVIL
Not only should Commission Have
Power 60 AbrOEate Unjust Rates,
but should he Formed Co stop
Discrimination.
CFrorn a stan Correspondentr

LINCOLN. oct. cial.)-Congress-
man Pollard spoke at the university this
morning on rate regulation. His talk was
along the lines Of the Falls City platform
and his speeches Of the campaign. He
spoke in part as follows
The railway interests OF the country are
manm lot IN their proportions. There are
today 22SO00 miles OF railroads IN the United
states, earning $4,000, 10000 per year. The
railroad companies employ directly 10000
people. II Is estimated that they are sup
porting through pay rolls, dividends and
railway supplies some 1900 900 people
doubt whether there is any factor that has
paved more important part in the de-
velopment of the Industrial welfare of the
country than the railroads. Thirty-five
years ago practically all of the 1000 diff
Ierent railroad companies and the 10000
manufacturing plants were operated indie
pendently. Each was a sharp competitor OF
n une ot me- for the sale OF their products
ostensibly $4,000 manufacturing plants they
nave amalgamated and consolidated their
interests until there are hardly more than
dozen separate plants i'm the different
manufacturing lines. which control their
output and dictate arbitrarily the prices OF
500 different railroad companies in the
United States today. These railroad com
panies have consolidated and the great
trunk lines have absorbed the smaller com
panies until we find not to exceed ten great
railroad systems that manipulate the rates
and direct the management OF all the rail-
road business Of the United States. Com
petition between the different manufactur-
ing plants and between the different rail-
way companies has been almost entirely de-
stroyed. The only competition there is
today between the railway companies is in
the efficiency of the service rendered.
Determination the Trouble.
Through traffic agreements and other ar
rangements a schedule OF rates Is agreed
upon. Rates quoted by the different COM
panies upon the same commodities between
similar points are always alike. This Is
= cd
schedule of rates is concerned. 1 have no
objections TO these meetings Of their traf-
nc managers. Neither do l object TO their
entering into agreements to maintain in
violate their schedule Of rates, providing
they make these published rates apply. TO
criminate, however, between the large and
the small shipper they should be required
to desist. It is against those secret rebates
and determinations in favor of extensive
complain.
am inclined to believe that the railroad
companies are not entirely to blame for
granting rebates. These great Industrial
enterprises to which have Just referred
are more to blame for this condition of af-
fairs than are the railway companies. My
position Is best illustrated by reference to
the celebrated International Harvester
company case, which was given out by the
Associated Press last summer. In this case
ii is alleged that one of the great railway
national Harvester company prior to 1902
100000, and from 1902 to 1904 this great
harvester company had received A,600OOO
more from the different railroads. This
contention is further substantiated by the
action of the United States grand jury at
Chicago, where fine of $25 900 was imposed
upon three or four OF the big meat packing
companies These great concerns ship MIL
lions of tons OF freight every year. They
take advantage of their immense business
and virtually go upon the market and sell
their business to that railway company
which offers the best reward. The railway
companies are engaged in the transporta-
n
1t is of great consequence to them to be
able to secure at least a portion of the
business of these great corporations. 1t is
also to their advantage to charge as high
rates as possible. Nevertheless, In order
to secure the business the railway company
is compelled to pay for II: The result rs
that these great corporations practically
sell their business to the highest bidder. In
my Judgment this situation furnishes the
Is the most difficult evil to suppress.
Government Must Supervise.
While / believe most firmly that the
Interstate Commerce commission should be
given unQuestiOned authority to determine
what may be the reasonable and equitable
rate between two points, and TO make such
rate elective at once subject to the review
of the courts, yet this is not sufficient.
Clothing the Interstate Commerce COM
mission with power to adjust railroad rates
will enable the people to secure redress
where an exorbitant rate is in effect. II
will not, however, reach the question of
rebates. Before the granting of rebates
can be eHecuNely prevented, L DeIeNe II
will be necessary for the federal govern
ment to exercise at least partial super
vision over the financial transactions, not
only of the railway companies, but of all
great corporations that do an interstate
business. l believe that the Interstate
Commerce commission or some other de-
partment of the government should be
clothed with the same authority to ex-
anime the financial transactions of these
great corporations and those of the rail-
roads as the bank examiners exercise over
the national banks. These great institu-
lions should be required to report 70 the
government, either monthly or quarterly
under OATH an itemized statement showing
their entire receipts and disbursements as
recorded in the auditing department of
their respective concerns. This is the only
way in which the granting Of rebates can
be effectively stopped.
This legislation must be supplemented by
state legislation of a similar character
The Interstate Commerce commission can
only have Jurisdiction over interstate rates
! and those corporations that are engaged IN
| interstate commerce. II has no Jurisdic-
| ton over rates or over corporations that
are of a purely local character and con-
! fine themselves to business that lies within
/ the borders of the separate states.
The last legislature submitted to the