The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1908-02-20
SOUTHERN
PACIFIC FOR REBATING

Washington. Feb. 19.-Prosecutions are
10 be Instituted by the government against
the Southern Pacific company and against
certain officials Of that railway organiza-
ton on allegations that they paid rebates
to shippers.
Information which Is the basis of the
prosecutions was obtained by Franklin X.
Lane, OF the Interstate Commerce COM
mission, last autumn In the course OF an
extensive inquiry made by him nto the
Affairs OF the Southern Pacific company.
BY direction OF the Interstate Commerce
commission, Commissioner Lane visited
the Pacific coast, and for several weeks
conducted his inquiries into the alleged
charges OF rebattng which had reached
the commission.
In the course of his report Commissioners
Lane says that his inquiry was conducted
In a Francisco, on the I'd, Sd and 4th
days OF October, 1907. and that from the
evidence adduced he finds: r.
The existence of an extensive system of
preferential rates granted certain ship
pers on Interstate business by the South
ern Pacific company. ...
corportions and individuals who enjoyed
what are known as special inside rates.
Tess than the rates published to the gen.
erai puplic-on the movement of certain
NAAA " OAllI 1lIlAl
the state OF California.
That shippers paid tho fun published
Tfte IN the first instance and were allowed
the ren1nd on claims which went through
the auditing department under instruc-
lions from the traffic department., hat
such special rates Mould apply upon in
terstate shipments without tariff auth
That such refunds amount In various
months Of the years 1906 and 1901 to from
10000 to $4,000 per month.
mat such refunds given to one firm
period from April, 1906 the date of the San
francisco fire, when all previous records
were destroyed), to September "A, 1907, and
s smoun nfr fron 5; sfs. Ssse to s sslggl ranged in
Ihat such refunds or discounts from the
regular rates have been continued for a
long period; and up to the date Of the
a many of such state shippers to
whom such refunds were allowed were
large interstate shippers.
MANY or the shippers admitted at the
rate on the state movement Influenced the
routing OF subsequent Interstate shipment
or such traffic over the rails of the South
ern Pacific company. -. -.
In one instance the general freight agent
or the Southern Pacific company provided
by voucher, dated July 81, 1906. for the
payment to an interstate shipper of one
mar nan on the local rate, which such shipper
~NANNAAS u " NAlC
point OF origin to a Southern Pacific ter
minal, where the traffic began its inter
state journey over the Southern Pacific
lines.
That there existed for years an under
standing between the Southern Pacific
company and the Santa Fe company and
certain shippers. of dried fruit that traffic
which moved into points of concentration
for transcontineutal shipments should be
entitled to O refund at the end of a ship
ping season Of one-half of the local state
rate charged at the time of the original
movement.
That the voucher books containing the
so called refunds on state shipments also
contained records of refunds given upon,
interstate shipments.
Thai some of UGH refunds upon inter-
state shipments were paid by special d.
rection of freight officials after the claims
ment.
The justification offered by the officials
and representatives OF the Southern Pa
cific company for the practices revealed
was that In general they were made neces-
sary to secure traffic which shippers
would move otherwise were such rebates
not granted.
In view OF the foregoing it IS directed
that g. copy of the transcript of the tes-
timony In this matter be forwarded to the
attorneys OF the United States for
the several judicial districts wherein Of
lenses against the act to regulate COM
merce was committed as shown by this
ecord and that such officials be request
ed to institute such prosecutions under
the law as may be warranted.