Special rates or rebates often divert traffic. The weak lines, in that particular business, are persistently in the field and can secure tonnage only by means of concessions from what may be called the standard or normal rate. The differential rate is an outgrowth of this condition. The present controversy over the right of the initial line in transcontinental business to route the freight at will involves such practices. The carriers insist that they can stop the evil only by the exercise of choice in their connections. An interesting recent example is found in the Elkins Committee testimony. It appears that lumber from points in Mississippi destined for Cleveland instead of going by the proper Ohio river gateways was diverted to East St. Louis. The operation was concealed by billing it to obscure points,--Jewett, Ill., near East St. Louis, and Rochester, Ohio,--and there issuing a new bill of lading to destination:
SENATOR DOLLIVER. And these people carry it up to this little station near St. Louis and then transfer it to another station near Cleveland?
Mr. ROBINSON. Oh, no; to any point on the Central Traffic Association territory. In other words, it may go to Cleveland.
SENATOR DOLLIVER. Why do they bill it to Rochester?
Mr. ROBINSON. In order to get the benefit of keeping it in transit fifteen days without any extra cost, first.
SENATOR DOLLIVER. I do not see how that would affect the question of billing it to Rochester.
Mr. ROBINSON. Because that enables the wholesaler to have fifteen days extra time in which to sell the lumber.
The CHAIRMAN. Why haul it all around the country and then reduce the rate on that long haul?
Mr. ROBINSON. In order that roads that are not entitled naturally to this traffic may by this process get the traffic.
SENATOR DOLLIVER. What roads from Mississippi to East St. Louis?
Mr. ROBINSON. Any of the trunk lines--the Illinois Central, the Louisville or the Southern Railway lines. The roads in Mississippi south of the river are not parties to this arrangement, you understand. In fact, as fast as they find it out they break it up, or try to. They do not want their traffic diverted.
SENATOR KEAN. Does it not come down to this, that some road is trying to cheat another on the use of its cars?