Los Angeles herald., 1907-11-03
3 PLENTY OF LAW, SAYS
~ JUDGE JOHN D. WORKS
IN WRITTEN OPINION

Judge Works in a written opinion
rendered by him says:
81 have read with much interest the
editorials in The Herald on the subject of
rebates of freight by railroads, and par
ticularly the position taken that as the
law now is in this state and without any
specific inhibition. such companies may
be made criminally liable and/ punished
for the offense.
''If the standard of business honesty
and integrity were what 1t should be no
legislation would be needed to prevent a
practice so manifestly in violation of good
morals and common honesty. But the
standard of railroad business does not
seem to be elevated enough to protect
the public and the railroads themselves
from this cut-throat method of doing busi-
ness, nor is the business standard that
will countenance the taking advantage
of such practices by a shipper. for his
benefit, any less reprahensible.
ut is gross breach of the mutual
obligations of the railroad companies
themselves, and which as a matter of
fairness and honesty should be respected
by them, resorted to for the purpose of
filching business from competitor. 1t
is usually violative of the duty of the
companies to the public with which and
for which they do business, because what
is rebated to the favored shipper must
be charged against the shipper not so IA
vored. If not, then the regular rate es-
tablished by the company is too high and
Is fraud.
No Question of cuIpabiity
Therefore, there can be no question of
the culpabilty of any railroad company,
and its officers, engaged in this nefarious
practice. But some of them seem to care
very little for this fact or for public con-
demnation OF the proceeding. This atti-
tude of the corporations doubtless brought
about the establishment by the state
constitution of a railroad commission,
authorized and empowered to establish
fair and reasonable rates.
'"This only led to further betrayal
cy, these corporations of the rights of
the people. They have succeeded in so
managing the politics of the state as to
keep their friends, upon whom they could
depend. in the office Of commissioner,
and thus nullifying, effectually, this in
tended safeguard of the rights of the
people. This has been so manifest, and
never more so than at tho present time,
that it is now an undisputed fact in the
public estimation.
when rates are established by the
railroad commission any rebate or vari-
alton from the rate fixed is made GRIM
inal and a penalty therefor imposed by
the constitution, which is self-executing,
and requires no legislation to make it
effective. That rebating is prohibited by
the state constitution there can be no
question. 1t provides in ters that no
discrimination in charges or facilities for
transportation shall b, made by an rail-
road or other transportation company be-
tween places or persons But, unfortua-
ately, no penalty is imposed for a viola
tion of this inhibition.
Guilty of Unpatriotic Offense
"That the allowance of rebate con-
stitutes a discrimination in charges
there can be no doubt. So every railroad
company, or its officers, who allows a
rebate is guilty of the unpatriotic Of
tense of violating the constitution of the
state.
1.-THE constitution makes it the impera-
tive duty of the commission to establish
rates. II they do not perform this duty,
they may be compelled to do so. When
they have established a rate any devia-
tion from it In favor of one shipper and
not of all is plain violation of the con-
stitution, a criminal offense and punish
able as the constitution provides, by fine
Of not exceeding $4,000 against the guilty
corporation. and fine of not exceeding
$50O0 or Imprisonment for not exceeding
one year, against the official or employe