The daily morning journal and courier., 1907-08-20

oIlCC US pdSSdBei IL UdS HOt uelPGN d single shipper, They insist that the only effective and an ali-sufficient law to regulate railways is the Elkins act, passed in 1903, and that this is shown by the fact that all the prosecutions in which convictions have been had against railway companies and favored shippers in the last two years, have been under the Elkins act and not under the rate bill. Let us look into the facts in regard to this allegation. The chief prosecutions which have been instituted have been criminal indict- ments against the Sugar Trust and the Standard Oil Company and certain railways and their agents and officers for taking and giving secret money re- bates. They could not have been brought under the rate bill, because the acts prosecuted were committed before the passage of the rate bill.
 EGectof ElI1ins Bill on Existing Crirnl-
 nal Prosecutions Was to Save Re-
 bate Givers and Takers
 From Jail. It Is true that these prosecutions were instituted under the Elkins act, but it is also true that had the Elkins bill never been passed, the same acts could and doubtless would have been prosecuted as giving and receiving un- just discriminations against the persons committing them under the amendment to the Interstate Commerce Act of 1889 which the Elkins law supplanted. The Eikins law was really an amendment to the Interstate Commerce Act, en- larging and making more effective the procedure for prosecuting violations of the prohibitions of that law and de- scriling them in more comprehensive form. It gave greater latitude in re- spect of the district where the offense would be prosecuted and 1t made the company necessarily responsible in a fine for the act of it's agents without other proof of direct complicity than the agency. Under the 1889 amendment however, the individuals convicted could have been sent to the peniten- i tiary whereas under the Elkins act, the punishment by Imprisonment was taken away while the fine wac increas- iod The chief effect the Elkins Inv had on these particular prosecutions which have been given so much prom thence, was to make it easier to convict the corporation and to increase its fine, but to save the guilty individual per petrators from imprisonment
 Rqiroads Favored Eikins Bill Because l If Abolition of J-ii Penalty.
 It is well understood that tho Elllins bill was passed without opposition by, and with the full consent of. the rail- roads and that the chief reason for this was the elimination of the penitentiary penalty for unjust discriminatloas. The abolition of Imprisonment, as q possi- ble penalty was unfortunate. Expari- ence has shown that a mere fine is generally not enough to deter q cor poration from violation of the law De- cause it then becomes a matter of mere business speculation. The impriscn- nent cf two or three prominent officers of a railway company, or trust, en- gagged ii giving or receiving secret re- bates, would have q greater deterrent effect for the future than millions in a fine.
 Rate BHl Restored Jail Penalty.
 In the Rate bill congress amended the Elkins bill and restored imprison- rent as part of the punishment fol secret rebates. Had the relating and disAcnest practices of the railroad com. panies and the trusts, been as clearly known to congress and the public when the Elklns bill was considered, a, they were when the Rate Bill was pass cd, the Elklns bill would nat have passed SO smoothly.
 Narrow Scope of Elkins Bill as Com
 pared With Rate Hlll.
 do not wish to decry the merits oi the Elklns bill because. aside from its elimination of Imprisonment as punish ment, 1t Is q most useful measure, but it's scope Is so narrow in respect oi the regulation of railways that it can. not be compared in importance of oper alton and effect to the Rate Bill. Tht increase by the Rate Bill in the powers of the commission in supervision in vestigation, rate fixing and effective or der-making to prevent discrimination lis great, Elaborate machinery for mak ing it difficult to violate the law with, out discovery and for discovering vio lEtions when they exist, and for af fCrding affirmative and mandatory re- lief in reauiring railroads. to furnish equal facilities to all, is found in tn, provisions of the New Rate Bill. Grim. iral prosecutions will continue to bC under the Elkias law, but as amended by the new Rate Bill This is becaus, the Elkins law, as amended, contain. thG part oi the interstate commerce legislation which prescribes the punish ment for violations of the law and so il ordinary practices, comes into oper. ation after the violations have beer discovered under the other provision! of the Rate Bill,
 If the Rate Bill is Ineffective Why Sucl
 Railroad oppOsitiOng
 If the Rate Bill was likely to be failure and to accomplish nothing il the regulation of their business, tn, query naturally arises why did thJ railroads spend so much money and st great effort to defeat it? Why was it if it had no effect, that in the interva between the time of it's passage and it going into effect, there were filed witl the interstate commerce commission more notices of reduced rates by tn railroads than ever had bean filad i,