The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-04-14
BIG REBATE CASES
CAUSE Of DISCORD
Commerce Commission Dis
satisfied With Wicker
sham's Procedure.
CONFERENCE TO-DAY
OF VITAL INTEREST
Packers LIBERALIZATION of Meat
Products Under a Hot
Fire.

The Interstate Commerce Commission,
whose powers are 10 5e radically dimin-
ished by the Taft Administ tration, is
dissatisfied with the manner in which
Attorney General Wickersham treats
the question Of prosecutions for rebat-
ing.
This dissatisfaction became plainly
manifest today when there was an i'm
portant conference on at the Depart
ment of Justice 20 determine what
changes are needed IN ths interstate
commerce law, and also 20 map out the
most satisfactory method for giving the
administrative duties OF the commits
sion to the Department Of Commerce
and Labor.
President Taft, however. has sided
with Mr.. wickersham in the case which
dissatisfied the commission, and it Is
practically helpless.
The radical difference of opinion in
the matter Of prosecutions for rebatins
was disclosed today, and the fear has
been expressed in certain quarters that
the recent act OF Attorney General
Wickersham in abandoning the Federal
investigation into the practice Of Chi
csgo beef packers overvaluing their
products for the purpose of collecting
jury or destruction. may partially par
alyze the arm OF the commission in
strictly enforcing the railroad rate law.
No Criminal Intent.
BY a striking coincidence. the opinion
of the Attorney General, that the pack
ers have been following a custom in
overcharges that is clearly Illegal, but
presumably without criminal intent,
mission is strongly inclined TO suspect
that the great increase in this practice
OF overcharges by shippers since the
passage OF the rate law Is a new sub
stitute 10 accomplish rebatng b. indi-
II developed today that the commits
sion has already formulated a plan &c
Investigate what this Increase IN over
valuation means. More than score OF
expert accountants have been selected
fer tie work, and II Is said that twenty
or thirty more will be employed before
.aany months The idea Is 10 have them
80 over the books OF the railroad com
psnies and make note Of all cases Of
damage claims for products injured or
destroyed. The commission believes
that by such an inquiry IL VIII be able
to put its finger upon infractons OF the
Information Withheld.
The commission is as mum as an
oyster as TO the attitude OF the Attor-
ney General, but the fact cannot be
concealed that the new policy in such
cases Is in absolute contradiction 10
that OF the previous Administration II
has consistently maintained tnat no
headway in enforcing the law can be
secured IL the Government auUpts a
policy OF considering the amount OF
money involved in rebate instead OF
dealing entirely with the question OF
whether the act itself is illegal
Attorney General Wickersham. I'm The
Chicago beef packers case, makes II
illegal, but explains that the Govern
ment has no desire TO test whether
there was criminal intent, because the
practice OF GENERALIZATION was in vogue
before the passage OF the Interstate
commerce law, and for the further fac,
that the amount OF money involved
was slight compared 10 the total
amount Of money received by the rail-
road for transporting Deef products.
IL Is believed that the Interstate Com
rnerce Commission desired a test case
made, in the hope that prosecution OF
the beef packers, even II glnsUccessful
would act 20 discourage smaller ship
pers from the Illegal practice OF over
valuation This whole case was gone
into very fully by members OF tns
commission during the last few months
OF the Roosevelt Administration. WITH
the result that the district attorney al
chicago received imperative instruc-
tions to push the prosecution 90 the
limit
No Power In Law.
The commission makes Il perfectly
clear that Il has no power under the
law 10 fix the valuation Of the com
modities OF shippers.
At the conference at the Department
OF Justice today were the Attorney Gen
eral. Secretary Of Commerce and Labor
Nagel, former Secretary Of the interior
Nsgei. Secretary OF the Interior Balln
ger, Commissioners Knapp and PrOuty
and Representative Townsend. who help
ed 10 frame the interstate cOmmerc'
law as n now stands.
Nothing was given out 10 the press sf
ter the meeting and IL was announce,
that another will be held In May.