Theodore Roosevelt and His Times by Harold Jacobs Howland
page 71 of 204 (34%)
page 71 of 204 (34%)
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within thirty days; it must itself appeal to the court for the
suspension and revocation of the order, or it must suffer a penalty of $5000 a day during the time that the order was disobeyed. The act further gave the Commission the power to prescribe accounting methods which must be followed by the railways, in order to make more difficult the concealment of illegal rates and improper favors to individual shippers. This extension and strengthening of the authority of the Interstate Commerce Commission was an extremely valuable forward step, not only as concerned the relations of the public and the railways, but in connection with the development of predatory corporations of the Standard Oil type. Miss Ida Tarbell, in her frankly revealing "History of the Standard Oil Company", which had been published in 1904, had shown in striking fashion how secret concessions from the railways had helped to build up that great structure of business monopoly. In Miss Tarbell's words, "Mr. Rockefeller's great purpose had been made possible by his remarkable manipulation of the railroads. It was the rebate which had made the Standard Oil trust, the rebate, amplified, systematized, glorified into a power never equalled before or since by any business of the country." The rebate was the device by which favored shippers--favored by the railways either voluntarily or under the compulsion of the threats of retaliation which the powerful shippers were able to make--paid openly the established freight rates on their products and then received back from the railways a substantial proportion of the charges. The advantage to the favored shipper is obvious. There were other more adroit ways in which the favoritism could be accomplished; but the general principle was the same. It was one important purpose--and effect--of the Hepburn act to close the door to this |
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