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.

Railroads to Evade Inter-
state Commerce Law.
Washington, Feb. IA. B. Stickney
Of st. Paul, Mimi, the president of the
Chicago Great Western railway, de.
livered an address last night on the sub
lect of The Defects Of the Interstate
Commerce law" before the regular
monthly. meeting Of the Washington
Economic. society.
MI. 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
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..
Stlckney, 'sand as none of the purposes
can be accomplished without a 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 principal obiec-
tions which were raised at the time the
law was passed against comforting such
authority upon the commission, MIR.
Stickney said:
In considering this matter, 1t should be
understood that the commission would
not make a 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.
|, "'One-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
islation to confer either upon the conpa-
MES or the public.
In case the rates made by such COM
mission would produce a perfect schedule,
but If the errors on the schedule were
: the duty Of all parties to submit.
, In case the rules made" by such a 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
J for the parties aggrieved in the courts for
> the relief against such oppressive rates,
by a bill in chancery asserting their I'M
: reasonable character and their conflict
with the constitution of the United States,
and asking a decree forbidding such rates.
r Therefore, the rights of the public and
the rights Of the companies In regard to
y the rates which would be made by such
a commission are as perfectly safeguarded
!, as it is humanity possibly to safeguard
. such rights. ~
9 "Unsophisticated" Suffer.
but quote the language Of a high au.
thority when say that prior to the in.
functions Of the. courts against paying re-.
. bates st was understood among bushes.
9 men that schedules were made for thu
, small shippers, and those unsophisticatet
:, 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 o
J. how to pay rebates without paying IRE
l. bates"
a Nothing short OF exact knowledge cal
e. do 1t. Hence, since the injunctions, tn
l. traffic, directors have stopped paying re
!, bates on grain shipm ents, but in 1ie1
" thereof have paid elevator fees, a practic
which the interstate commission has sane
l. toned as admissible under the law, not
e withstanding it is evidently rebate pal
le to elevator owners which is not avaiabl
e. to ordinary shippers. -:
% The traffic directors have made secre
S. contracts with the traffic directors q
10 hi 80 hale
rates. and, having thus secured the ton
le mage in advance. they publish a SEIZED
g. ule containing the contract rates. In tn
al parlance Of the profession such schedule
re- are called midnight schedules" and hav
f. all the effects of secret rebates.
g. NO small dealer can secure the advan
IA tages of a midnight schedule because h
"a does not control a sufficient volume {
"a tonnage to induce the making OF such
al schedule. The small dealer must pay til
regular schedule rates, but it is, not s
with the large dealer. :,
The large dealer, say In grain agree
with the traffic director of railway thu
to he will buy in competitive territory '
million bushels guaranteed, and, If pos
r. sible, before the game is discovered, fou
OF or five million bushels, provided that ate
Ie that he has secured the grain the railwa
H. company will publish legal schedule re
Ht ducing tho rate, say, / cent q bushe
IT standing the large dealer forces the snaa
dealers out Of the market by Offering
fraction OF cent more than grain
- worth, or induces some of the small dea
q. ers to contract to deliver the amount h
Il requires. =" FL p - 49, ' "
he = 1t Is a .'slick'' Plan.
a Having thus secured the grain, tn
~ ~ midnight schedule Is published and file
~ with the Interstate commission. The rat
= goes down 1, cent, and consequently til
- price Of grain advances cent. The resu
Of the transaction is that the small deale,
are driven out Of the market or that til
small dealers who have made contra c1
are saddled with losses which the lars
T, dealer pockets as profits, and the railwa
=. company secures large tonnage Of CON
petitive traffic. '.-s.
It is q slick way Of turning small dea
= ers' losses into large dealers profits, b,
as the law now stands, the lawyers agre
that it Is lawful 80
= These legal midnight schedules whic
are Of frequent occurrence and result
l ofnps {y,i,S r$30 $H,o,>