The weekly Iberian. (New Iberia, La.) 1894-1946, 1906-09-01
The New Rate Law

The Iberian now belongs to the
cant GETAWAY Club" 1t was
elected to tull membership on
Thursday when a representative
OF the Southern Pacitic'S transpor
tation department called and
presented letter. from the gener-
al office Ieq Nesting the surrender
of its mileage books.
The reasons for this Act Is
made apparent IN the appended
account Of the changed conditions.
brought about by the enforcement
of the new rate law. which went
INTO effect on last Tuesday
Practically all railroad lines IN the
country which have had advertising
contracts with newspapers and peri
odicalS which have been paid tor IN
transportation cancelled their con-
tracts, effective last night at mid
night, because the Interstate Com
merce Act, known a. the Rate Law
went into effect at that time.
Tie adjustment of free transpor-
tation or passes will not take place
until Jan, lQ- the section OF tile
Law containing that provision being
made operative on and after that
date. Between now and Jan, |, there
fore, the railroads can legally issue
sportation without any compen-
sation at all, but they cannot Issue
any transportation in return for adj
vertsing.
This rather unique condition OF
affairs has been brought about after
a careful study Of the law by atfor-
news of the railroad lines. There are
two sections OF tile law hearing on
the subject, namely. sections one ana
six. 1t Is provided that In payment
of transportation no railroad con
pany shall accept "a greater or less
or different compensation. In IN
terpreting the word different the
railroad LAWYERS have taken it to
mean that advertising transportation
il included there, and hence in order
TO be strictly within the law, they
have determined. as this section went
into effect last night, not to allow
any more advertising transportation
to be issued.
Some of the railroads are not at
fected by the operation of the law
under this Interpretation, as they
have been paying cash for advertls-
ing and have been giving gratis
transportation to newspapers. Others
have been paying cash for advertis-
ing and giving transportation gratis,
bat have been, as a matter Of record,
charging up the transportation SO
issued against the newspapers. This
after method will be abandoned
hereafter. Other roads have been
advertising, and this will cease.
Much uneasiness was felt Yesterday
by persons here who had relatives
travelling on advertising transporla-
ton, the return limit of which was
fixed later than yesterday. 1t was
stated unofficially by railroad off
Gals that while such transportation
would not be honored, at the same
time the companies would protect the
holders of such transportation by is
suing complimentary transportation
to take its place.
1t is generally believed BY railroad
passenger officials here that the ac-
ton taken by the railroads in can
ceiling their advertising contracts is
not final 1t is believed that they
were in doubt as to the legality of
the contracts and decided to be on
the safe side by doing away with the
contracts until the Interstate Com
merce Commission can have time to
pass upon the matter authoritatively.
The opinion prevails among many
well-informed railroadmen that ad-
vertising contracts paid for by means
of transportation are perfectly legal,
and il is believed by them that it
will he so decided by the Interstate
Commerce commission.
Local railroad Offices, received no.
tice yesterday that free transporta-
ton would no longer be gwen adj
vance agents Of theatrical companies,
this being held also to come under
the sections of the law which went
into effect last night.
MONEY .ol,.%%'