Senator Elkins who drew the bill is the political “boss” of West Virginia. He is director of a railroad that belongs to the Pennsylvania system and is otherwise identified with railroad interests. He acted in harmony with leading railroads in drawing the bill. In fact, it is said on high authority that it was framed in the office of A. J. Cassatt, President of the Pennsylvania Railroad. The law is in many respects a good one, although there is a clause in it which may protect the railroads from the consequences of wrongdoing, and it is thought by many that the real effect of the law has not yet become apparent. Railroad managers do undoubtedly desire to protect themselves from the importunities of shippers to whom they do not wish to give concessions, and to be free from the danger of imprisonment, and so far as possible from any danger, in case they are caught giving preferences to persons or companies in whose property they or their railroads have a special interest. The Elkins Act accomplished all these purposes. It is claimed that the words italicized in the above quotation from the act will prevent the prosecution of any officer or road on account of any cause in respect to which they give evidence or produce books. In other words, they can only be prosecuted where the discrimination or departure from schedule rates can be proved without their help. Commissioner Prouty says: “I have no doubt that rebates to a greater or less extent are paid in many parts of this country. And if it turns out, as the railroads contend, that the disclosure by any officer of a railroad gives the company its exemption under the Elkins Bill your law is good for nothing. They can resume the payment of rebates whenever they desire.”[[161]]
The fact is, apparently, that for some months after the act was passed the railroads in large measure discontinued rebates and some other notorious forms of discrimination, just as they did for some months after the Interstate Act was passed in 1887. The abuses “grew up again afterwards, and almost every 1st of January, from that time down to this, these railroad gentlemen get together and make a gentlemen’s agreement that they will quit and reform and turn a new leaf and not do it any more. They break down again and make a resolution again. They are now under a good resolution.”[[162]]
Some of the sweeping declarations of railway men and others about discriminations, and especially about rebates, are as follows:[[163]]
“All stopped.” “Eliminated.” “Almost annihilated since Elkins Law” (February, 1903). “Almost entirely wiped out.” “Have known of no such payments for over 12 years.” “Do not know of any in last three years.” “Have not had any for about 20 years.” “Never had any.” “Know of none.” “Have been practically abandoned.” “Past issue.” “Have no knowledge of.” “No complaints of.” “None so far as I know.”
Some of the witnesses give the railways a clean bill of character and even put a coat of whitewash over the record of the Standard Oil from 1887 on. Mr. Hiland, head of the traffic department of the Chicago, Milwaukee and St. Paul, says: “Unjust discriminations and rebates have ceased.”[[164]]
Mr. Bird, Vice-President of the Gould lines, says: “I believe there are no rebates paid.”
“Chairman. And discriminations?
“Mr. Bird. No secret discriminations. There may be discriminations that are open and published in the tariffs.... I do not believe that the Standard Oil Company has received a rebate since 1887.... I do not believe that the beef trusts are getting rebates.”[[165]]
Mr. Brown, counsel for the Santa Fe, said: “My sole purpose in appearing here is to put on record a sweeping denial that the A. T. and S. F. Company has made any discriminatory rates or paid any rebates.”[[166]]
Mr. Biddle, traffic manager of the Santa Fe, was not quite so sweeping. He said: “It is true that rebates have been paid, although personally I have not known of any such payments for over twelve years.”[[167]]