The state herald., 1906-04-06

lowing catechism embodying the views
of those who support President Roose-
welt in his endeavor to have the Inter
state Commerce Commission given
power to specify maximum railroad
rates and to prevent determinations
What is the railroad rate contro-
versy about?
The fight is over the Presidents
plans for remedying certain evils in
the railroad situation.
What are these evils?
OF the several varieties of which
shippers complain, two classes are of
most importance: Those involving dis
ordinations in freight rates between
individuals or places; those resulting
from excessive charges for carrying
freight. Passenger rates do not en-
ter prominently into the controversy.
What sorts of discrimination are
made between individuals?
BY law, railroads are compelled to
charge all comers alike for any given
service. When for some reason a road
secretly gives some favored person or
firm a lower rate on shipments than
others get. it is guilty of discrimina-
Kansas City TO Chicago is IL cents per
hundred pounds. II certain com
mission house is allowed to ship at
10 cents, 1t clearly will have an enor-
nous advantage over Its competitors
in selling wheat In Chicago. On 100,'
900 bushels this would amount to
about $1,000. In fact. II a shipper can
get sufficiently good concession from
railroad he may make fortune
while his rivals may barely make a
living. The foundation of the success
Of the Standard Oil Company was its
ability to get lower rate on Its oil
shipments than its competitors could
secure. Railroad discrimination has
contributed powerfully toward foster
ing monopolies.
Are the railroads alone to blame for
this discrimination evil?
No; the shippers are partly respon'
sible. The railroad grants low rate.
not because it wants to, but usually
because 1t thinks the cut necessary
to get the business for which 1t is
competing with other lines.
But II rate-cutting is prohibited by
law, how do the railroad traffic man
uktlS dhoiu btihS ouNH
Various devices are used. including
the rebate, the private switch. the
private car line, non-collection of bills,
under weighing of freight, manipula'
tion Of elevator charges, and the like.
What is the rebate?
If Kansas City shipper gets rate
OF 10 cents hundred on shipment
of 100000 pounds Of wheat to Chicago
when the regular traiff rate was IL
cents, the road might collect sl20 from
him at the l2.cent rate and then return
the extra $40 TO him secretly. The
500 returned would be rebate. But
rebating is so strictly forbidden by law
now that 1t is becoming obsolete.
Much safer methods OF evading the
statutes have been found.
What, for instance?
Last Sumner Kansas City firm was
shipping wheat 10 Chicago evidently on
better terms than other concerns could
get. 1t was found that the wheat was
billed TO Minneapolis via Chicago At
the regular Minneapolis rate of IL
cents, but that II was stopped at Chi
cago ard sold. Presumably of the
through rate, G cents was charged for
the haul from Kansas City TO Chicago
and more from Chicago TO Minneap
oils. So the firm was probably getting
a G-cent rate TO Chicago by this device,
while its competitors who had no fav'
ors were paying IL cents. Another fav'
oriie device is TO collect every month
only part OF favored shippers ac
count, so that the books will show him
paving the regular rate. but getting
more and more heavily In debt TO the
railroad. Still another device Is TO per
nit big shipper TO build a switch Ia
the railroad line from his factory and
then 10 pay him an cNorbitant prices
for its privileges. Still another Is 10
permit the shipper TO own his cars and
then TO pay him heavily for their use.
The Standard oil Company, for In
stance. H. generally understood TO get
its rebates in the shape of heavy pay
ment by the railroads for the use oi
its tank cars.
How common are these various
forms of Illegal discrimination?
Naturally no complete information Is
available. But In Wisconsin careful
Investigation secured. by Governor la
Toilette was able TO trace more than
tG.O00.000 Of Illegal payments To ship
p.rs from 1897 to 1908. One Wisconsin
grain firm alone was found to have re-
ceiyed $751; 900 from the railroads In
Ave years-enough to have given It d
handsome profit, even II II had merel,
broken even on It's grain business. II
is safe 10 assume that u very large pro
portion of big shippers get Illegal re-
duciions OF froisht rates.
What Is meant by discrimination be
tween localities?
The railroads give certain towns bet
ter rates than others In order TO de
yelop markets or To build MP their own
resources In various ways. For In
stance. n paint dealer In Spokane
Washington. must pay sa3 more freight
on carload Of supplies from Chicago
than the Seattle dealer pays, though
Spokane In $50 miles nearer Chicago
4 rate ON rope from san fnncisco 70
Kansas City was recently quoted nj u
cents per hundr'd pounds. while tn,
rat. to Hutchinson, Kansas, go miles
shorter haul. WAS sl.oi.
How does this locality discrlminn
<<<<<<<<<><<<<<<>><<><>><,