The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-01-15
INTERSTATE COMMERCE.
What Effect the Reagan Bill Will Have
on the Railroad Business.
Several Of the Provisions Of the Measure
Severely Denounced by Men Whose
Interests They Nest Affect.

Much interest is felt in railroad and business
circles here over the Reagan Interstate COM
merce bill, which recently passed the House OF
Representatives and is now under consideration
by the Senate. The views of several represent
alive railroad men were solicited yesterday
and their opinions of the bin, expressed in a
general way, are as follows:
V. T. Malott. vice-president and manager of
the Union Railway Company: have not given
the bill careful consideration, and am not pre-
pared to discuss ii in detail In general way, /
can say that regard the bill crude, and If
enacted. it will do great injury to the railroads.
think 1t is an inopportune time for Legislation
Of that kind. The competition of the railroads
is with the water ways, in the freight business
AL the rates on Western roads are based On
Chicago rates, and they are governed by the
rates OF the water ways. Such matters cannot
be arbitrarily established by law If this bill
is passed it will do much harm to the agricul-
tural business, particularly of the Western
States. / think the Senate should appoint a
commissioner to fully investigate the subject
before amy final action is taken. Similar legs
1ation has been attempted in various States, and
has never been found to be practical What we
need more is bill to protect the investors in
railroad securities and the roads from ruinous
eompitition."
Mr.. T. A. Lewis, general MANAGER of the Erie
and Pacific Dispatch fast freight line: "That pro-
vision Of the bill which prohibits railroads from
charging more for short than for long distances
would be very disastrous. and this think, is
the chief objection to the proposed law 1t is
not generally known that Ohio has law con
tanning similar provision and it has been prac-
ticallv dead letter since it was enacted, and
there has been no general attempt to enforce 1T.
although have heard that one or two companies
had to pay damages in suits brought under it.
1t seems to me that that clause would ruin all
the railroads in the country if strictly enforced.
The bill is extremity crude and indefinite
For instance, it makes certain requirements
but does not say who shall see that they are car
ried out The only recourse shippers would
have would be- by bringing suit and this would
result in almost endless litigation The bill doesn't
say what the rates shall be and when they shall
begin, only that they must be greater for short
than long distances. Take the Indiana, Bloom
-ington & Western road for an example; what
rates shall they charged They carry freight from
San Francisco, and there is no way to determine
whether they should charge in accordance with
this. o. Nth their Peoria rate It n.eeIposes to
prohibit pooling arrangements, If it should be-
can,e law, there would be no necessity for
ehem, because the bill and the pools are
trying TO- prevent exactly the same anne
pools are also trying to make
rates Uniform, just as the law proposes to do. /
can see no necessity for the bill in this respect.
The present law regarding common carriers de-
m.eeads that there be no discrimination in rate
making and recently Cleveland firm got
heavy Judgment against the Lake Shore road
for refusing to give them the same rates as they
did the Standard C;l Company. If this OBJ
noxious provision should become part of the
law the railroads would either have to contest
it. or they would be compelled to put up their
through rates so high, so that the local rates
might pay them, that it would practically ruin
the farmers III some of the Western States, and
render their farms almost worthless because
they could not get their products to the Eastern
markets without paying such exorbitant freight
charges that they could not sell their stuff at
sufficient price to pay for the production and
shipment. The provision of the bill limiting
charges for passengers to three cents mile
would make but little difference with most of the
roads, but would work great hardship to those
in mountainous and thinly settled countries
Personally" concluded Mr.. Lewis, who had
evidently given the subject careful considera-
ton, Il am In favor of commission to fully in
vestigate all the questions involved in the Rea-
gan BILL and report the results of their labors to
Congress, so that the members can take iutelIi
gent action regarding the proposed legislation.
After that think it would be a good plan to
make this commission permanent one dis
tinct bureau of the government, possibly to con-
troll and regulate the railroad business in accord
ance with the laws the subject, and to ad-
just such differences as may arise between the
companies and shippers. Such commissions,
am informed, are in operation in Europe, and
much benefit has been derived from them"
Mr.. Albert S White general agent of the c.,
C., &. d |. railroad SAID that if there must be
law on the subject of interstate commerce. he
thought that the Reagan bill was probably as
good as any. but it was open to very serious OBJ
jectionS One of those that it prohibited
pooling arrangements, which were of direct ad-
vantage to shippers, and without which there
would always be cutting of rates The latter
might at times be of advantage to some SINNERS
but it Disseminated against the majority of
them Again the bill prohibits charging more
for freight for short distances than for long dis
tanees. and this would take all the local business
out of the hands of general freight agents.
fhn lnna Al
came as those to competitive points
which the roads cannot afford. The present
policy of all the Western roads was to base the
tariff on mileage, and this was being brought
about as rapidly possible, the tendency and
intention being to establish uniform system
The provision of the bill regarding passenger
business would make little difference to the
roads in this vicinity or in the East, because few
of them charged more than three cents mile,
but it would greatly affect such roads as the
Southern Pacific. which charges ten cents a mile.
Mr.. White thought that the proposed legislation
was based on wrong principle. The laws of
trade regulate the railroad business to a great
extent, and the competition between various
lines was now so great that there was little dan
ger of rates becoming extortionate unreason-
able. He regarded the abrogation of pooling
arrangements particularly pernicious to all
concerned and thought that the matter should
be fully investigated by competent commits
sion before any legislation was made He said
that proposition made in the Indianapolis |
bOaru OF Irauo, lew weeks ago, 10 1ndorSe the
Reagan bill, was voted down by decisive ma
jority.
Mr. Fl. G. Dehl. general freight agent of the
T., B. & w. system. said that he regarded the
bill as senseless and vicious in its tendencies.
and about on par with the famous 'whistling
Law" enacted by the Indiana Legislature four
years ago. If 1t should become law and be
strictly enforced it would destroy the value of
ali the railroad property in the United States.
There was not the slightest necessity for such
legislation at the present time for no reasonable
mar could complain of the existing rates 'The
bill proposes, said Mr.. Diebl Ito regulate
freight rates and make them uniform How
is this to be done, / should like to know
Aud who is to fix the tariff What right has o
company which connects with our lines to die
tate to US about what we shall charged If there
is to be uniform system, suppose the rates
on east-b bound freight must be fixed from San