A more impressive mass of negative evidence could hardly have been secured, even if the Commission had selected the witnesses with a view to their ignorance of rebates and kindred manœuvres. It is peculiarly fortunate, just at this time, to have the statements of so many who seem to have refrained from associating with rebates or seeing any discriminations, in view of the vigorous anti-rebate remarks of President Roosevelt in his recent messages to Congress, asking for further legislation to check railroad abuses. The President is under the impression that rebates and other evils still exist, but if the Senate Committee can report to Congress that this is a mistake it will be clear that the said new legislation is not needed.
Unfortunately, however, the weight of evidence is against those who affirm the conversion of the railroads to the ways of virtue. The cessation of discriminations is denied by a large number of authorities including railroad men of the highest position.[[168]]
James J. Hill, President of the Great Northern, says discriminations still exist and must exist. He thinks discriminations will never cease, and declares that railroads “have to discriminate.”[[169]]
Victor Morawetz, Chairman of the Executive Committee of the Santa Fe and its chief counsel, says that discrimination still exists and is “bound to exist” under present conditions. Many things the traffic managers do are not authorized by their superiors and would not be approved by them, but it is understood that concessions are given and must be given.[[170]]
President Stickney of the Chicago and Great Western says that prior to the injunctions against paying rebates “it was understood among business men that schedules were made for the small shippers and those unsophisticated enough to pay the established rates,” and since the injunctions the knowledge of the traffic directors has been exerted in “the problem of how to pay rebates without paying rebates.” They use “elevator fees” and “midnight schedules” or sudden changes of tariff known beforehand to favored shippers. These special tariffs “are of frequent occurrence and result in greater injustice than secret rebates.”[[171]]
Mr. Rich, the general solicitor for the B. & M., said to the Providence Economic Club, in the spring of 1905, that 75 percent of products is carried below the published rates. He added that the rates are mostly open. The published rates no doubt are open, but it is hard to believe that the cut rates are mostly open. If they were, there would be no reason for publishing rates other than those in use. Every rate below the published tariff is a violation of law. And it is not easy to see why the railroads should risk multitudinous violations of law simply to establish open rates which might be published without interfering with any purpose that is honest. I quoted Mr. Rich’s words to an excellent authority and he said, “Cut rates are not open rates. Can’t make people believe that.”
Senator Dolliver said:[[172]] “A famous railway president, speaking in this city a month ago, stated that the whole railway practice of America was honeycombed with secret rebates and discriminations as late as last January.”
Professor Ripley says[[173]] that discriminations between localities and between commodities through classification, etc., are still serious evils.
Governor Cummins of Iowa said:[[174]] “So long as there is competition among the railroads in securing business, so long they will find some way of getting that business through favors.”
Mr. C. W. Robinson, representing the New Orleans Board of Trade, said: “The direct rebate has been stopped by the Elkins law, but there still remains the indirect rebate, or the almost innumerable forms of discrimination, which are difficult to reach by legislation, and in the practice of which some of the traffic managers are unquestionably experts.”[[175]]