Al^Jillf LiUJtAI, Al'l'iitii'KlAiMi.S IWU., iiU4. 46l 



Mr. M.vciKK. Vhc |)i)iiit 1 hail in iiiiriil wus tiiis, timl uiulcr thi* 

 Federal art it is pntvhlnl that thocrrtificati- i>i.suc(| |>v llu' authnriM*<i 

 aj^t'nt (»f llu' th'partmi'iil sliall l)c rr<i'iv«'(l in all of tin- riiit4><l 



Slalt's as prima f iri.' ex id..,. .. ..f d... iiuth nf 1 1, . axMiU'iil.t tlnTt'ln 

 coiitaiiicd. 



Mr. SiiKicMAN. If v<'ii (ii<i not ^iv»» us that, we <oiiM ii<»t do miv 

 hiisiricss at all. 



Mr. MA(iKK. With thai pnivi-i-in in tl.ii.. ! .1,. u.. 

 could huv(» any couiprtilioii. 



Mr. Shkii.mas. Wo j^ct coinpctiiion, bin-au.sr, as a piai Ii'mI niatior, 

 most of those coiit rovei^sies are not taken info Fedcr.d <i> 



.\lr. .\l \<.i:k. liul tiiey may bf taken into the Federal <• . 



Mr. SiiKUMAN. As a pruclioul mutter, if a man wants to hrin;; null, 

 he will hriiifx it in a Stato or city court, when> lie can ^et <{uieker 

 action, and th(> testimony of the man who hioked in the cat door and 

 who says that the things were all smashe<l to pieces will he Worth just 

 a.s mucli to him in the Stato or city court as the cortificate that we 

 issue wouhl he. One advant ijje that the privjit icy has ovor us 



is that they furnish men as witnesses, and the ... j,. rtor uv' ■■ his 

 inspection for the person wjio hires him and not as a di-iin d 



a<;(Mit. If ho is hired by a railroad to make that inspection, he looks 

 in t!ie ear. makes his c(M'tifical(» to the railroad, whi'h <;ives the rail- 

 road idl that there is to he said on it- -id.' ..f l!"- '•■•-■• ''f ''!■• '.mi.-.- 

 voi"sy is carried into court. 



Mr. Anderson. I g'^ined tiie ijupression .somehow that some of 

 tliese peope who make contracts coverinf^ a certain largo number of 

 iiispoctioiis made tiiem as low as SI per car. 



Mr. SiiKK.MAN. I think very likely they do. I do not knovs- what 

 tlie j)rivale atjencv oflered to do the work for the B. Si O. Uailroad for, 

 i>ut the B. cV: O. ftailroad practically odered us a j]^uaranty of S ),')()(> 

 cars a year in Philadelphia and New York if we would make a sub- 

 stantial reduction in the fee. They expected to get it done for $2 per 

 car or loss. We und(>rstood tliat this private agency had oU'ered to 

 inspect SO, ()()() cars at Philadelphia und New York for ??1..') ) f)er car. 

 I will explain to you wliat sort of insnectit)n that moans. If they 

 lind out that we have inspected a car, they go in and look at our cer- 

 tilicate, and they will always trail us. Thov will never make a state- 

 ment which disagrees with our inspection. \nil their inspection is for 

 the purpose of furnishing evidence to the person who employs them. 



Mr. ^1AGEE. I understand that, but I view it from the standpoint of 

 the shij)ner and not the transporting agency. It seems to me that, 

 with a leo of S4 a man who exorcised ordinary prudeji..' u.nil.l 

 hardly take the chance of mi.ssing a Federal cortilicato. 



Mr. Sherman. That is true. 1 think I am safe in saying tltat liiese 

 private inspection agencies have almost no business from the pro- 

 tlucors and are almost never omnloyed hv a siiipping association. 



Mr. Anderson. It is practically all railroad inspection ' 



Mr. wSherman. It is railroad nispection and mspection for the 

 receiving interests. 



Mr. Ma(;ke. That is the way it impressed me, that you would not 

 have much competition from the producers. 



Mr. SuER.MAN. No; not at all. 



Mr. Ma(;ee. But what the transporting agency might ilo is an<»ther 

 tiling. 



