A few years ago, in proceedings before Judge Grosscup of Chicago, it appeared that while the published rate on packing-house products was 23½ cents, the favored packers were given a rate as low as 15 cents.
Investigations by the Commission in December, 1901, and January, 1902, took the lid off of the dressed-meat business and discovered a large congregation of secret rebates. The Pennsylvania system was cutting the rate on packing-house products 5 to 7 cents below the published rate, making it 25 cents and sometimes 22 cents, in place of 30 cents, from Chicago to New York. Rates from Indianapolis, Cincinnati, and other points were also cut.[[104]]
The examination brought out the fact that President Cassatt and other officers above the traffic manager knew what he was doing and authorized or permitted the rate cutting.[[105]]
“Commissioner Clements. Who takes the responsibility for doing these things, for making these serious departures and cuts, in regard to the Pennsylvania Railroad? Is it you? Do you do it without any authority from the officers of that road above you, or do you have their approval of it?
“Mr. McCabe. I am in charge of the freight traffic, and I do the best I can under the circumstances.
“Commissioner Clements. Do you act independently of them, or do you have to have their approval?
“Mr. McCabe. I assume to do what I think is proper, being governed by the competitive conditions.
“Commissioner Clements. Do you have reason to know that the officers above you in the management of that company’s affairs knew of it?
“Mr. McCabe. Not in detail.
“Commissioner Clements. I do not mean the details. I could have answered that myself. But as to the general fact that the Pennsylvania Railroad was cutting the rate in this serious way, was it known to the president of that company and other officers?