Evening star., 1932-01-21
|. c. c. ACTS TO END
SPECIAL ROUTING
"ReciproCity" Between Car
. riers and Manufacturers
Under Fire.
BY GEORGE E. DOYING.

The practice of reciprocity" in the
purchasing of supplies by railroads and
the routing of shipments by manufac-
turers is likely to be abolished as a re-
suit Of a proposed order submitted to
the Interstate Commerce Commission,
recommending legislation TO deprive
shippers of the right to specify the
routes over which their shipments shall
be transported.
The trading of purchases for traffic
is not new but it has assumed impor
tant proportions and is surrounded with
a degree Of secrecy that made it diff
cult for the commissions examiners to
ascertain the facts in an inquiry re-
Gently closed.
Notwithstanding extended eXamina-
tion of witnesses with the carriers rec
ord as a basis" it is asserted in the
order submitted to the commission for
approval little information was elected
other than that contained in the docu-
mentS. In practically no instance did
the carriers counsel make any inquiry
or assist in any way in developing the
facts"
Expense Held Surprising.
This reluctance to disclose the facts
was attributed by the commissions eX-
aminers to fear on the part of railroad
representatives that if they should give
testimony and their competitors should
remain silent, the shippers involved
would retaliate by divertlng traffic from
the carrier whose representatives gave
the testimony.
IF the true results of the present
practice could be brought to light the
proposed order says, I'VE believe the
amount of unnecessary expense in
CURED thereby would be surprising"
&C. tho order
continues, why it is of any great i'm
portance to shippers, from the stand
point of transportation, that they be
able to specify the route which their
shipments shall take in reaching their
destination.
ION the other hand" it is declared,
"this right bestowed by the law is being
abused and used as a weapon to force
purchases from the carriers and is being
very effectively employed"
Under the Clayton act the carriers
under specified circumstances must
purchase supplies or other articles from
the best bidder, to be aScertained on
connective bidding under regulations
to be prescribed by the commission.
This provision. however, applies only to
purchases aggregating more than S5O,-
600 in one year and when the same
person is connected with the railroad
and the seller. 1t is proposed now to
provide that all purchases must be
made by competitive bids.
Two Proposals Made.
although it is possible" the order
asserts, lit does not appear probable
that the carriers can be relied upon to
correct the abuses disclosed by this IN
yestigation Some corrective action
should. however, be taken to curb a
harmful practice which is already
steadily growing" 49,.
It is proposed, therefore, that the
commission recommend to Congress
that % the provisions of the law un-
der which the right is given to Shippers
to specify the routes over which their
shipments be transported be rescmdeo
and az that authority be vested IN the
commission to require by order that
purchases OF any or all materials sup
plies. equipment or other articles shalI
be made from the bidder whose DID Is
the most favorable to the carrier OF
carriers. to be ascertained by competl-
tive bidding under regulations 10 oe
prescribed by rule or otherwise py the
commission.
Copyright. 1897