Presidents -- United States -- Messages; United States -- Politics and government -- Sources
proposal is not to give the commission power to initiate or originate
rates generally, but to regulate a rate already fixed or originated by
the roads, upon complaint and after investigation. A heavy penalty
should be exacted from any corporation which fails to respect an order
of the commission. I regard this power to establish a maximum rate as
being essential to any scheme of real reform in the matter of railway
regulation. The first necessity is to secure it; and unless it is
granted to the commission there is little use in touching the subject
at all.
Illegal transactions often occur under the forms of law. It has often
occurred that a shipper has been told by a traffic officer to buy a
large quantity of some commodity and then after it has been bought an
open reduction is made in the rate to take effect immediately, the
arrangement resulting to the profit of one shipper and the one railroad
and to the damage of all their competitors; for it must not be
forgotten that the big shippers are at least as much to blame as any
railroad in the matter of rebates. The law should make it clear so that
nobody can fail to understand that any kind of commission paid on
freight shipments, whether in this form or in the form of fictitious
damages, or of a concession, a free pass, reduced passenger rate, or
payment of brokerage, is illegal. It is worth while considering whether
it would not be wise to confer on the Government the right of civil
action against the beneficiary of a rebate for at least twice the value
of the rebate; this would help stop what is really blackmail. Elevator
allowances should be stopped, for they have now grown to such an extent
that they are demoralizing and are used as rebates.
Public-domain text, read in full here on John Shaqi.
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