The Washington herald., 1918-12-30
BAN ON REBATE
FOR R. R., PLAN
People VIII Demand Re
forms for Return, Hol-
land Says.

=
railroad affairs some years ago. one o.
which was In existence at the tins
the government took over the Amer
can railroads, speak in the hope thsJ
the subcommittee Of the railroad ex-sg
ecutives which is now occupied ..fn-t
preparing q plan whereby the. sti.
roads can be safely and wisely re-s
turned by the government 20 priysts.
ownership. will take into considers-
zion some OF the lapses in rsilwsy
management, and in the moral Tels-s
tion OF the railroads TO the. peopis
which explain in part the widesprese'g
hostility to the railroads that vai3
manifested by the people. O. ~
Not the least important OF the messl-.
ures which, it is said by those conrpe
tent to speak, should be Incorporated
into any plan which the railroad ex-
ecutives may submit TO Congress. re
latcs 10 the absolute elimination Of r
rebates. There has always been some
suspicion that Notwithstanding the -
prohibition Of the payment OF r. bsteT-e
by railroad companies 10 shipPefs'e
nevertheless this law has been skiH-
fully cvaded The railway maracsrE4'
have not called the evasion by,l ths-s
name OF rebates. but instead have
termed il The making OF allowances r
for damage. This policy has beer
carried on more or loss for years and
il was not discontinued until the gov
eTnment took over the railroads. I'D
The evasion Of thu law was made
in such way that IL was- almost
impossible 70 prove tnst there had
been any evasion. For instance, al.
lowancys were frequently asked and
almost as often allowed for dsrnaget
alleged to have been discovered fr
rails that had been shipped from
one point to another II often hap= !
pened that these alleged damages In
the aggregate amounted To the
equivalent OF ; per cent rebate OF 81
even more. II was impossible &c
trace the claims Of the shippers. and e
therefore. after some compromising.
the claims were usually allowed.
The belief was always strong that
these claims for damages were un-
justified by the facts Then. GEain
railway managers were confronted
by claims made by shippers for dam
ages TO material or commodities
impairment OF packages and all
sorts Of DAMAGES. 4 prcten=e OF
investigation was usually made. but
il commonly resulted in an allow
ance OF some damages. and this al
lowance. in fact. was nothing less
than a rebate.
Commission Should be Formed.
Now that the able railroad CNeCu-
tives are working out plans whereby
the railroads can be returned by the
government TO private owncrs. cunsid-.
erable pressure has been brought 10
bear upon them 10 incorporate in the
plan a provision that weil-quaIIfed
commission be established 10 which
all claims for damages can be sub
mitted. II this be done then sur lcienf -
scrutiny OF the claims can be- made
50 that there can be established facts
70 show whether or not To- claims
were valid or whether they are no
more than q disguise for rebate.
, There should also be incorpcrs ted .
in the plan section which will pro- -
vide for the absolute observance % o.
, contracts In the past some railroad ~
managers have entered into contracts
, with the intent Of paving no heed 60 as
them. although holding the other >
= party 10 the contract .r
As it Was with Miners.
Some years ago the so-caHed bJt,l- e
m'nous coal miners association. not @
\ Il e
, tered into contract with the railroads -.
! whereby Il was provided that the bittr-
. minous miners were 10 be raid Et a .
certain rate per ton The hitumFnpux r.
association accepted this agreement IN 81 /.
: good faith, but IL speedily became
p evident that some OF the IA -fwsv pol
managers. two OF whom repteSenrrd r.
, great railroads. determined 20 cut r.a
. down the agreement By at least 5 cents
Ia
n serious problem until at last the y
hituminous association appealed 10
5 the late J p. Morgan. He spoke with
, emphasis and indignation OF this nur-
2 pose Of the railway mauaEers and let
J them know instantly that ne would
use all the authority he possessed 10.
prevent it. The railroad managers o..
feared Mr.. Morgan and they hacEeI
? down This. II IL had been carried %
out would have been a secret method q
j whereby railroad rates could have
] been increased
Trick ENposrd --
Railroad managers. however vyrrr ...
not tn" only ones who were imposed
, upon by shippers who claimed dam
: ages whereas no damages existed -.
certain firm located IN thriving
o community made a claim for dam
, ages on account OF goods shirpnd
from large iobbinc house. as al
, legged. 10 this firm Tho iobbcrs pro-
fesscd L" reEret that there should
have been damage hut asked tn,
customers for details upon whic0
tn" 1ubberS could act. Thereupo1
the firm sent an elaborate statement
Of the damage done 90 the Comnod- .
tiles and made large claim for al
: lowanCe. Having then secured fn
writing the statement Of the bass OF '
the claims for damages the 5obberS
replied. saying The Identical com
. modItios you SAY were bought by YOU
and shipped 10y us 10 you are now o.
our basement not having hern shipped
, al all.
II rs deemed one Of the most i'm
. portant or tho PROVISIONS which Wit
be incorporated IN any statute pass
ed by Congress- which relates to the
railroad situation that there should
be set forth in Jhr statute a pro
q vision which Will absolutely pre-
. vent hereaft'r tn" allowance for
damages Until these claims have
been authoritaINcIy and officially
Investigated and found TO be Iustf- .
, bed. For II a moasur. Of that klnd
can be adopted ii Will 20 far il not
completely TO put an end 90 the evil .