The Helena independent., 1892-03-12
A Recent Decision the Hardest Blow
the Interstate Commerce Law
Has Yet Received.
The Law Must Be SO Amended as
to Reach All Car
riers.
John McNnlta, a Recognized Authority,
Analyzes the Ruling Of Judge
Allen, of Chicaao.

regarding shipments to Canadian points bv
railroads in the United States has opened
up anow the whole question of Canadian
competition. While there is wide vari-
ancs in the views expressed, all seem Will
ling to oonoede that this is the hardest
blow the interstate commerce act has re-
csived. Gen. John McNulta, a recognized
authority on both the railroad and legal as
pect Of the case, says Of the decision: The
decision rendered by Judge Allen is hnt tho
beginning of tho end. The law must bs
80 amended as to place the same restriction
upon all carriers allowed to compete for
the same business, or bs wholly repealed.
Otherwise. it will become practically dead
letter. That no penalties could be inflicted
by our courts for acts done beyond the ter
ritorial limits of the United States i'll con-
travention of the provisions of tho acs
has always been conceded by everybody.
This gave an undue advantage ana
the control of foreign traits to the
Canadian roads, whose officers might choose
to limit their operations to the actual pay
ment of rebates etc, on the Canadian sldo
of the border. This decision goes further
and says that the law does not apply to
Canadian tariffs. In ether words, traffic
managers can make and alter such tariffs,
pivo rebstss and make discrimipations,
ignore the whole law at their pleasure on
all traffic to and from all Canadian points
or ports. The necessary sequence is that
all the American rosds as means OF salf
preservation, must do the same on CORE
spending traffic. This they must do. not
only to protect their own interests but to
protsct the commercial interests of the
American ports and business centers, esps-
cially New York, Philadelphia aua Balti-
more, and all inland points dependent upon
those points for their imports. Otherwise
traffic will be diverted f,om them to tho
full extent Of the carrying capacity OF tho
Canadian roads to take it. To hold that
our own traffic ia bound by, while the
Canadian traffic is FREQ from. the restric-
tions of tho law, would be simply to desttoy
our commerce. the power to do which does
not rest in congress. The power to resn-
late does not imply the power to destroy.
The practical effect of the decision is that
the law DOES not apply to any traffic to or
from points beyond the border or seaboard.
Although no penalties can be inflicted for
aots done in Canada the Canadian roads
can be regulated by our laws if congress so
chooses. There are no English or foreign
ships plying between Chicago and Butfalo
or any Of our domestic ports, simply be
cause they are prohibited from carrying
traffic between Canadian and English ports.
For like reasons English railroads i'll Can
ada, carrying traffic to and from points in
the Unitee! States should be excluded. Or,
if permitted to do business on our side of
the line, they should be under license,
rsvohable for violation of the rules which
govern American reads.
ached1e Of the exclusion of Canadian
roads would not increase the cost of trans
portation by cutting off competition. On
the contrary. if properly managed, it would
lessen the cost to the general public. The
power having been exercised by the COM
mission to fix what are reasonable rates
they Will be the current rates under COM
petition with the Canadian roads, less a
proper sum deducted for the cost of the
maintenance of the Canadian roads, which
would be dispensed with. The heavy ship
pers who practically monopolize certain
lines and get enormous rebates are the only
ones who would suffer. We cannot have
absolutely prohibitive protection against
carriers by English ships. and at the same
time. for the same teatHc, have unlimited
Unrestricted free trade for carriers by Eng.
lish railroads. There is no semblance OF
reciprocity in this, for our own roads are
handicapped by laws that D; event then
from competing with the Canadians. II
looks now as if the American people woulC
soon be aroused to realizing sense of the
situation. The least that can be asked ii
that the roads on both sides Of the border
be alike restricted or alike free.