The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-14
L.EAEING Oh COTTON RATES.
EONESyr;L TIROVS INTO THE
GATHERIN& or WITNESSES.

WARRINGTON, Sent. n A tOmbGlel was
tirown into TIC sCi,cr.a, of railway men
and shippers who wcre present et the hear
f.: Of the Interstate Commerce Commits
a \ to-day when Chairman Knapp read a
tier from "A "promilcnt railway president
whose name IL we'll known throughout he
country, who declared in substance that
81 the commission mad i a general practice
% authorize tic changing % rates upon
less than thirty days notice il would result
IN a revival OF tao abuses that the new rate
regulation net wG3 enacted to CORRECT.
The commission was in session to hear the
testimony Of railroad mon and shippers
for and against the proposal that the cotton
carrying roads should 10 permitted TO
change rates upon short notice. A witness
had concluded an argument on the afirma-
tive side o. tle Glo't!oa, when Chairmil
Knapp announced that no desired to rAl1
Q lettor from n prominent railway preii-
dent, who had somsthins b say on tlc
negative side. som, OF the railroad men
i present a~s3crtol tlut the letter was written
by the president Of a Western railway hav-
ing its headquarters in Chicago. The conf
mission declined to namc the author. Here
are some Of the striking sentences in the
communication:
AN officials Of railway companies sat in
the shadow Of the penitcntiary from the
Passage Of this frs. law, which imposed
imprisonment, until the passage Of the
Elkins law, which abolished imprisonment.
The new law reenacts the imprisonment
penalty, and for this reason | have the right
to protest and do protest agains: the Inter-
state Commerce Commission letting down
the bars which will render the efforts Of a
company to obey the law usoles 80 and which
will result in a flood of illegal practices
n thus compel railway officers to again
nit in the shadow Of the penitentiary for
the Yemoinder OF their lives.
IF you will examine the schedules on file
in your Office you will find thousands Of
so-called export schedules which bear on
their face evidence that they are in ref
erenoe 20 a special contract which has been
made between the railroad company issuing
IL and some Particular shipper, who is
thereby, under color Of law, given prefer
ence over all Of his competitors, which is
the very thing the law was intended to pre-
vent.
IF you wink at tho practice Of exporting
cotton under such schedules as requested
you will later have to win the other eye
at the same practice in regard to the export
Of wheat, -four I'M packing house products,
and l shall then be compelled to go out Of
the export trade or to compete against such
practices by adopting the same methods.
The real condition which the commission
Is facing in the present inquiry is: Shall
railroad companies have general export
schedules as a basis for all cotton growers
and dealers to trade on while a few dealers
shall have a secret understanding with the
carrier that they may trade on a lower
basis Of rates, and when they have scooped
their competitors and effected the trade,
an instantaneous midnight tariff may be
put to cover the particular shipment, to
expire when the shipment is made"
The letter was couched in vigorous lam
guage all the way through, n as Chair
man Knapp continued reading great i'm
patience was shown by the railroad men.
When Mr.. Knapp had concluded Judge
Edward Baxter Of Nashville, general counsel
for a number Of Southern railroads, jumped
70 his feet, evidently angry and primed
for a reply. Tit commission was then
ready to adjourn for luncheon, but before
Chairman Knapp could announce that a
recess was to be taken Judge Baxter said
that while he could hardly wait to answer
such a SANDER he would do so. His inn
patience got the better of him, however,
M he fired this shot just as the commits
9oners were abou to retire:
Il think the writer OF that letter belongs
20 q class OF railroads that nominally pro-
AWE1 GullEb ODcd1CDCo W " q dhO ian
what profits they do make by secret mid
night rebates"
!, When the afternoon session was resumed
Judge Baxter, in an address that at times
was marked by great anger, continued his
discussion of the letter that had created
such a sensation among the railroad men.
"A defendant has a right to meet his
accuser face to face" he said. In this
case we nave not even had the opportunity
Of knowing the name Of the gentleman
rwhna ant tho laffAF am not Wilin0 that
the people | represent shall be put in the
attitude Of Juggling with this commission.
] think it is unfair that an anonymous
lstter writer should put us in the position of
trying TO obtain some advantage over this
submission. / object TO a man who con-
issses his own iniquity reading me a moral
lecture
Shippers az well as railroad men shared
the indignation and appeared to be aroused
by the caustic assertions made. Other
statements in the letter follow.
Il can conceive Of no reason which would
apply TO cotton which would not with equal
force apply to export grain, -four, live stock
and packing hous products.
The thirty days notice makes il only a
little more difficult to manipulate the e1-
port rate for the benefit OF the large ship
pers. 1t was by means of such schedules
that the export rate on packing house
products from Kansas City was manipu-
lated. The court held the schedule and
the practice unlawful, assessed the max
imum fine and regretted that the law did
not permit imprisonment. The present law
permits imprisonment.
The commission should understand that
the eyes of every freight agent and of every
shipper who has heret ofore received dis
eliminating rates, as well as the eyes OF all
the people of the United States. are fixed
upon the commission to see whether it is
IN earnest in the enforcement Of the law
In it's integrity, or is going to pursue a
practice of emasculating the law by winking
at illegal practices.
Il once heard the following conversation
between a freight agent and a shipper in
regard to the payment OF a rebate upon
certain shipments:
-Shipper-I spoke about the rebate
before I made the shipment
Freight Agent-'Yes, and l aid no.
Shipper know you said no; but
there was a queer look on your face which
Thought meant yes
The commission is in the same position
a. the freight agent. Every wink, every
queer look on the face will receive a con-
A.