The heart of the railroad problem: The history of railway discrimination in the United States, the chief efforts at control and the remedies proposed, with hints from other countriesParsons, Frank
History
The heart of the railroad problem: The history of railway discrimination in the United States, the chief efforts at control and the remedies proposed, with hints from other countries
Parsons, Frank
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Discussing the continuance of the payment of rebates and the reasons the
Interstate Commission has not been able to stop the practice,
Commissioner Prouty says:[358] “When I first came onto the Interstate
Commerce Commission (1897), I used to see continually in the newspapers
statements like these: ‘Rates sadly demoralized,’ ‘agreement between
railroad officers to restore rates,’ and everything of that sort. I said
to my associates, ‘Gentlemen, this thing will not do; we must stop the
payment of rebates.’ They said, ‘How are you going to stop the payment
of the rebates?’ I said, ‘We are going to call these gentlemen before
us; we are going to put them under oath, and we are going to make them
admit they paid these rebates, and we are going to use the evidence
which we obtain to convict them.’ We employed Mr. Day, who is now with
the Department of Justice. The rates which have been almost uniformly
demoralized have been the grain rates from Chicago to the Atlantic
seaboard. We called in the chief traffic officials of all these lines
and we put them under oath. Now, I would ask these gentlemen, ‘Are you
the chief traffic official of this road?’ ‘I am.’ ‘Would you know it if
a rebate was paid?’ ‘I would.’ ‘Are any rebates paid on your road?’
‘There are none.’ ‘The rates are absolutely maintained?’ ‘They are.’
“Well, every traffic official who came before us in that capacity—and we
prosecuted it for three days at Chicago—testified that rates were
absolutely maintained.”
“SENATOR NEWLANDS. How many did you have before you?
“MR. PROUTY. We had the official of every trunk line leading from
Chicago to New York. They all testified the rates were absolutely
maintained from Chicago to New York. Two years after that I examined the
chief traffic officer of the Baltimore and Ohio, and of the New York
Central—do not think it was the same man in either case—and of the other
lines, and they all testified that rates had never been maintained. I
would like to know what I could do as Interstate Commerce Commissioner
to make those gentlemen admit that they paid rebates, and as they would
not tell that they paid rebates, I would be glad to know how I could
obtain evidence that they did.
Public-domain text, read in full here on John Shaqi.
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