The National tribune., 1906-04-12
As TO REBATES.


cago Great Western Railroad, throws
a flood of light upon the actual facts Of
rebates He says, in the first place, that
the railroads have done their utmost
to suppress these things, but without
effect. The great shippers have not
even gone to the length of making n
protest against such action. All they
had to do was to select one of the lines
which had agreed not to give rebates
and route all their shipments over it.
This at once Swelled its earnings to
such a marked degree that its stock
went up and that of the neglected lines
went down. The telegraph ticker i'm
mediately communicated this fact all
over the country, and the suffering
lines had to Immediately come down
and give rebates to secure trade. They
had to apologize humbly for their hard
heartedness in refusing the shippers
their previous requests. President Stick
ney then asks whether consolidation of
all the railroads would be 4 remedy
for this, and arrives at the conclusion
that it would probably be n remedy
worse than the disease. The consoii-
dation already made has produced great
evils as to which stockholders as well
as shippers have much complaint. and
the prospect is that further consolida-
ton would produce even greater evils.
The consolidation inevitably puts the
l,,..
scene OF activities. and places men in
charge who are unacquainied with
actual conditions. Furthermore, it leads
to the creation of railroad cZars with
their courts of grand dukes. each of
whom has his .'rake-off' out of the
profits of the roads. and he gets this
rake-off without reference to any con-
dition except his own appetite. With
the railroad car will be his coterfe of
bankers. sons-in-law and ships cousins
of all kinds. The developments in the
insurance companies are significant as
to this.
Next Mr.. Stickney inquiries rs to the
remedy afforded by legislative control
of rates. The average American always
| wants to pass n law whenever things do
not go TO suit him. The Interstate Com
merce law has been in operation for Is
years now without reducing the evil of
rebates. The law forbids in the strong
est language rebates and kindred evils,
| and on it's face it would seem 10 be
sufficient. Under the original law the
penalties ran only against the payer of
rebates. later amendment imposed
| the same penalty "for soliciting or re-
cciving a rebate This seemed just a,
| the time. but 1t made it impossible TO
convict anybody, because the rebate
| crime is known only to two parties. and
neither could testify against the other
without discriminating himself. Then
another amendment was passed. which
required both parties to testify. but pro-
| vided immunity for the offenses to
which any one might give evidence as
| to himself. The Elkins amendment was
| passed in 1908, which imposed fine OF
not less than $1,000 and not more than
$4,000 for soliciting or receiving a re-
| bate. but so far not u conviction has
| been made under ii.
In spite of all these failures. Mr.
IStickncy believes that law could be
| framed, but il would require long and
| patient study and investigation By the
aElest men. He suggests the appoint
ment of an Interstate Investigation
| Committee. composed OF. say. sever
members. four members TO be appoint
| ed by the President and three members
10 be appointed by the railroad com.
panies. One member should be a sound
| lawyer: one a mathematician: one ar
experienced railroad auditor: one al
engineer OF capacity. experienced II
calculating costs of transportation: ont
a superintendent, experienced in III,
actual movement of trains and of roll
ing stock: one a station agent. expert
enced I'm the details OF station or ter.
minai service. and one traffic man
| aGer. experienced I'm present rates. The
committee should have authority to de
| mand from the railroad companies ;
new line of statistical facts which have
never been compiled. relating to costs
and particularly TO relative costs as be
tween lhe different conditions undel
which commodities are transported.
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