New-York tribune., 1907-10-16
GIVING REBATES YET.
Commissioner Lane Finds Evidence
against Southern Pacific.

M8shlngton' Oct. 15.-That rebates on charges for
ipihents Of freight have been paid by at least one
idAFoau system since the enactment of the
Iiepeurn rate law was ascertained by Franklin Il
1s' u the interstate Commerce Commission,
ms recent trip TO the Pacific Coast The offending
me rs the Southern Pacific. The evidence of this
ialIoh OF law was brought out at a hearing be-
Iore commissioner Lane in San Francisco. It was
oiio"A that some OF the rebates had been paid
interstate shipments but that the greater part of
mem We're paid OF intrastate shipments. It
"cNno"4edSed by officers of the company the
"i'lesS stand that the Southern Pacific had
!esu4arly organized rebating system covering state
business from one end of California to the other
Although the company's counsel resisted Commits
sloner Lanes demand for the books showing the
character and extent OF the rebating. they
hnally produced. They showed that about 10000
In rebates had been paid in the last year. Some of
the payments were interstate shipments. 1t
was disclosed also that the company had what is
known as inside rates"-that is. rates which are
less than the regular published tariff intended for
the use OF the general public. These inside rates
were given by the Southern Pacific TO favored
shippers.
Mr. Lane has not submitted his report to the
commission, but this evening he authorized the fol-
lowing statement bearing his Investigations:
I do not know what may have been published in
The hsnss 6d = @ 6X 1T o6S T%q 6
the public, and the information elected was
Earded by the California papers as startling We
found in the Southern Pacific office a list of pre-
mann 1Iy OF Ire aESts' ana hfoSL -
books which had accumulated since the fire Of last
year showing special rebates. There were several
thousand entries In all most of them for very
small amounts. These refunds in all amounted to
about 1000 during the last year.
1t must not be understood. however, that the
age OF them, were refunds upon interstate ship
ments But a small per cent could be connected
in any way with an Interstate shipment.
do not regard the revelations in California as
indicative of settled policy by the roads 20 evade
the law. On the contrary, believe that the west
roads q
making very serious effort to comply vita
the requirements OF the law. The hearing in Cali
fornia demonstrates beyond all question the neccs-
sity for regulation: for the railroads Will not or
cannot, without the help of prohibOry legislation,
make and enforce uniform rates TO all shippers.
II that all rebating upon interstate ship
meRts has been stopped. The old method OF giving
direct return Of portion of the rate has been
abandoned very generally, but the railroads tnem-
selves will grow in time TO see the wisdom and
the benefit coming 20 them from the strict en-
forcement Of the law.
Mr. Lane said that no facts were brought out
at any OF the hearings on the Pacific Coast con-
Meeting Mr.. Hartman with any knowledge Of re-
bates given by his subordinates
LAS to the general condition of the West he
added, I do not any reason for PessimisIn
Everywhere west OF the Missouri River there is a
great amount Of building. and the people in the
presence of large crops and high prices. are con
fdent and tuoyant. The only people who seem 70
be at all discouraged about the West are those
who do not live there"