Los Angeles herald., 1907-10-22
CRIME OF REBATING
mHE HERALD regards the granting
of rebates and special rates to
- favored shippers bv common car


for this reason is under both legal
and moral obligation to accord equality
of treatment to every individual of that
great body called the people whose rep
resentative, the government, has en-
dowed it with life.
Furthermore. any advantage in the
form of a rebate or special rate granted
any individual or organization engaged
In business represents a corresponding
disadvantage to all of his or it's COM
petitors who do not enjoy such favor
at the hands of the common carrier. 1t
is, too, a peculiarly dangerous and
deadly disadvantage against which the
average business man or association is
called upon to contend, for, like thief
or assassin, it works in the dark, and
men can enable the business men or
organizations who are oppressed by the
granting of this secret advantage to a
competitor to guard against its effects.
So general is the recognition of the
destructive effect of this unfair weapon
when welded against the general busi-
ness interests of the country and to the
advantage of some favored interests,
that all of the states, as well as the
national government, have legislated
against it.
The people of the state of California,
with this idea in view in their state
constitution, forbade determinations by
common carriers in charges or facilities
for transportation; provided for the
establishment of regular rates of
charges for the transportation of pas
sengers and freight; made any de-
parture from the established rates a
crime punishable by heavy fine and i'm
prisonment, and provided machinery in
the form of state board of railroad
commissioners, which the constitutional
convention deemed adequate to the en-
forcement of the will of the people as
expressed in their constitution.
The revelations recently made at the
hearing before United States Interstate
Commerce Commissioner Lane in San
Francisco would seem to leave no doubt
that at least one great railroad cor
poration in this state has been engaged
in the granting of special rates to
favored shippers, and consequently has
violated the provisions of the state con-
stitution.
BY no very difficult process of reason
ing we may safely reach the conclusion
that the favors granted by this cor
poration, evidently for the purpose of
securing business against it's rivals,
have not been confined to the city of
San Francisco; and, going step
further, we may arrive at the extreme
probability that like benefits have been
conferred upon the favored shippers In
our own city and county.
In mandatory terms it is made the
duty of the state railroad commission
to take cognizance of and inquire into
violations of the law as to equality of
rates by common carriers. Upon this
point the constitution says:
"Said commissioners shall have the
power, and it shall be their duty, to
establish rates of charges for the trans
portation of passengers and freight by
railroad or other transportation COM
panies, and publish the same from time
to time with such changes as they may
make; to examine the books. records
and papers of all railroad and trans
portation companies, and for this pur-
pose they shall have power to issue
subpoenas and all other necessary pro-
cess. and to enforce their de-
cisions and correct abuses through the
medium of the courts"
It is reported that at least two mem
bers of the railroad commission of the
state, in interviews recently given, have
attempted to put upon the attorney gen.
eral of the state the burden of taking
the initiative in the investigation of
the determinations in freight and fares
which it is understood have been ad-
mitted by representatives of the South
ern Pacific company, and which. have
been, at least through the medium of
the public press, called to their atten-
ton.
1t will be noted that in the man.
datory language of the constitution
above quoted nothing is said or hinted
about the commissioners awaiting the
action of the attorney general or any
other official or person before they
move in the exercise of the power to
investigate transportation companies
and connect abuses which is given them
by the terms of the constitution.
The language of the interstate COM
merce act, defining the duties Of the in
terstate commerce commissioners of the
United States, has no more mandatory
language imposing upon these commits
sioners the duty to investigate viola
tions of the law by common carriers
than is the language of the state con-
stitution in imposing like duties upon
the state board of railroad commits
sioners.
Has anybody ever heard of the inter-
state commerce commission awaiting
action by the attorney general or by
individuals aggrieved or injured by vio-
lation of the national law by common
narriers before talSinq stems to inyesti-