The National tribune., 1906-04-12

President A. B. Stickney. OF the Chi
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 it's 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
that it would probably be a remedy
worse than the disease. The CONSOLE
dation already made has produced great
evils as to which stockholders as well
as shippers have much complaint. and
the prospect is that further consolda-
ton would produce even greater evils
The consolidation Inevitably puts the
headquarters OF direction far from the
scene OF activities. and places men in
charge who are unacquainted with
actual conditions. Furthermore, it leads
to the creation OF railroad cars 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 i'm 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
rebates. The law forbids in the strong
est language rebates and kindred evils,
and on it's face it would seem to be
sufficient. Under the original law the
penalties ran only against the payer OF
rebates. A later amendment imposed
the same penalty "for soliciting or re-
ceiving a rebate This seemed just at
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 1903, which imposed q fine OF
not less than $1,000 and not more than
$4,000 for soliciting or receiving a re-
bate. but so far not a conviction has
been made under IL.
In spite OF all these failures. Mr..
Stickney believes that law could be
framed. but it would require long and
patient study and investigation by the
ATTEST men. He suggests the appoint
ment OF an Interstate Investigation
Committee. composed Of. say. seven
members. four members 10 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 an
experienced railroad auditor: one an
engineer OF capacity. experienced I'm
calculating costs of transportation: one
superintendent, experienced In the
actual movement OF trains and OF roll
ing stock: one q station agent. expert
eHced In the details or station or ter
nina! service. and one a traffic man.
ager. experienced I'm present rates. The
committee should have authority to de-
mand from the railroad companies
new tine Of statistical facts which have
never been compiled. relating to costs.
and particularly TO relative costs as be-
tween 3he different conditions under
which commodities arc transported.