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 — John Shaqi
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
In the Counselman case (142 U. S. 547), Jan., 1892, the U. S. Supreme
Court decided that a witness could not be compelled to testify in regard
to discrimination in which he was involved, since the Federal law made
it a criminal offence to make or benefit by discrimination. Unless the
law exempts the witness from prosecution in consequence of his answers
or in relation to the subject of them, he is not obliged to answer a
question when the answer might tend to incriminate him.[52] Refusal to
answer on such a plea is of course equivalent to confession of guilt. In
this case Counselman, a large grain shipper, had been given rates on
corn some 5 cents less per hundred than the rates paid by others from
Kansas and Nebraska points to Chicago, over the Rock Island, Burlington,
and other railroads. Five cents a hundred is an enormous profit on corn
which the farmer had sold at 18 to 22 cents per hundred, and such a
margin would enable the favored shipper to drive every one else out of
the trade; and on many western roads it has been practically the case
that only the railway officials and their secret partners can do
business. Counselman refused to tell a United States grand jury whether
or no he had had any rebates from the railroads in 1890. He said he had
received none from Stickney’s road, nor from the Santa Fe, had had no
business with the latter, he thought, but as to the Rock Island, C. B. &
Q., etc., he declined to answer on the plea that to do so might
incriminate him.
Some railroad officials testified freely, but neglected to tell the
truth.[53] Discriminations as a rule were secret. Even when it was
clearly known that favoritism was being shown, shippers were generally
afraid to complain, and in the small percent of cases where complaint
and investigation took place it seemed impossible to get at the truth in
any large way, because the railroad men for the most part would not
“cough up” the facts. Still, something was done by the Interstate
Commission, the courts, and the Industrial Commission. Some progress was
made and some light secured. The jets of flame that here and there came
up through the cracks from the under-world showed very clearly what was
going on beneath the surface of railway affairs.
_Direct Rebates._
Direct rebates on interstate traffic appear to have been checked for a
few months after the passage of the Commerce Act, but the railroads
admitted that they still gave rebates on traffic within a State[54] just
as they continued to give passes, making them good within one State,
insisting in respect to both rebates and passes that they had a right to
give them because the law did not reach State traffic. Nevertheless, as
the Commission remarked, such rebates inevitably affect the rates upon
interstate traffic, and a competing road whose traffic is taken a little
further, crossing the state line, may be compelled to give rebates or
surrender important business.
Public-domain text, read in full here on John Shaqi.
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