The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-17
INTERSTATE COMMERCE
DIFFICULTIES OF CONTROLLING TP
UNDER THE PRESENT LAW.
Annual Report of the Federal Com.
missiOn-Its Powers Abridged by
the Supreme Court.


The eleventh annual report of the Inter-
state-commerce Commission was made pub
lie yesterday. 1t opens with statement
concerning the extent and character of the
administrative work of the commission, in
Guiding adjustment of complaints without
hearing. filing and adjustment of rate
sheets and compilation of statistics. Much
of the report is devoted to showing the diff
ficultes under which the commission labors
in endeavoring to enforce the law under
which it was created. Discussing the SUI
preme Court decision denying power in the
commission to prescribe maximum rates.
report states that it is perhaps the most
important since the act was passed. The
court referred to billions of dollars invested
in railroad properties and the immense traf-
fic moved yearly. The commission calls at
tention to the public interest in freight
charges paid by the people during the fiscal
year of 1896. amounting to $7S6, 615 1877, and
that very slight change in rates on a
staple article amounts to an enormous sum
in the aggregate. The railway traffic man.
ager may decree whether an industry shall
exist or a locality flourish. The question is
one of transcendent Importance both to the
capitalist and the humblest citizen. The
commission can no longer afford relief in
particular cases as it has in the past, for the
Supreme Court confines the commission to
orders in respect only of what has been
done by the carrier. Regulation governing
future rates is now unauthorized.
The report shows that damages for I'M
reasonable rates can only be recovered by
the one who pays the freight money while
the real loser is generally the producer or
consumer. Moreover. If the party injured
could sue, his individual interest in the par
ticular case would usually be small, and he
frequently would not do So. An individual
Is not ordinarily match for the
vast power of a railroad corpora
ton. Reparation has only been award
ed by the commission in five cases. Only
claims based on unreasonable rates may
come to be bought and sold. prosecuted
upon speculation, in much the same way
that personal damage claims are, and juries
will give the like excessive verdicts that
they often do in suits of that nature. Does
the United States government desire to de-
lberately create that condition of things
which is little better than legalized brig
andage! the report asks. Instead or saying
that the commission can only regard the
past, Ii would accord more with the intent
of the act and be more for the interest of
the public and the carriers If inquiries by
the commission looked mostly to the future.
The power to reduce a rate has been and
will be, if granted, most important fea-
third of its orders have directed rate re-
auctions. In thirty-eight cases now pending
the main question is one of reduction in
rates. Four of these cases affect the most
important interests in widely separated sec
tons of the country, and the amounts in
volved in the reductions asked are enor-
nous. There should be some tribunal to de-
eide these questions, and unless some bet
ter way can be devised. the commission
should have power to prescribe rates in the
future, as it has assumed to do in the past
A DIFFICULT WORK.
1t is one thing, the report says to secure
publication of the proper rate and another
thing to secure adherence to it. Under the
statute it is a criminal offense for a rail-
way official to give, or shipper to take,
less than the tariff rate. AT first it was inn
possible to obtain evidence of such rate cut
ting, because witnesses could not be COM
PEELED to eliminate themselves. This was
cured by an amendment of the law, which
the Supreme Court held constitutional in the
Brown case. After that decision railroad
managers loudly protested their intention to
maintain rates, but 1T soon began to be
charged, and even tacitly admitted by rail-
way off1clals, that tariff rates were disre-
garded. In a recent investigation by the
commission, officers of railways engaged in
traffic to the Atlantic seaboard, who must
parted FROM testified without exception
that they had in all cases been maintained
Nevertheless, the fact is well understood to
be otherwise. The large shipper trust,
monopoly. reaps the benefit of these cuts.
The small shipper pays the full rate. The
honest shipper may be prevented from do
ing business at all. The same is also true
with carriers. AS a rule they want to obey
the law. Under existing conditions dishon-
est railway officials and dishonest shippers
may compel every competing railway and
every competing shipper to be dishonest
also or withdraw from the business. How
far this outrageous situation extends the
m knowledge.
it is certain that it exists to a considerable
extent and that there is pressing need of a
remedy is not denied. The carriers claim
that the remedy lies in the passage of a
pooling bill.
AS to the wisdom of pooling legislation the
commission is not agreed. Pooling does rot
appear to be much resOrted to in England,
and under conditions there existing there Is
little or no occasion for. it. But competitive
rate agreements are made there and seem to
be generally observed A majority of the
commission think that pooling would inn
prove the rate situation, and the present
condition is so disastrous that they would
be inclined to indorse in good faith any way
out of it. but If pooling produces any bene-
fetal results 1t necessarily does SO at the
ing the public loses the only protection it
now has against the unreasonable exactions
of TRANSPORTATION agencies. Still, in view of
the whole situation, majority of the COM
mission would be inclined to recommend
that the expedient be tried, if suitable safe
guards are provided in advance; but this
recommendation must be taken only with
the Limitation stated.
The commission reiterates its condemna-
ton of ticket scalping. and says that the
bill which passed the House of Representa-
tives at the last session of the last Con-
gress seems well calculated to prohibit the
evil.
The proceedings had under the safety-ap
pliance act during the year are stated, in
Guiding the hearing and determination OF
the commission upon the applications of 2o9
operating roads for extension OF time be-
yond Jan l. 1898. within which to comply
with the provisions of Sections / and 2
which require cars and locomotives used in
interstate commerce after that date TO be
brakes For reasons stated, the commission
granted the petitioning carriers an extension
of two years from Jan. /, 1898.
To make the interState-commerce act OPP
eratiYe in accordance with its generally &C.
cepted objects and purposes, ana TO give
practical effect to its first, second and third
sections which declare unjust and unreas-
enable rates and charges TO be unlawful,
and which. in terms, forbid unjust dtscrlmi-
nations and undue preferences, the commas
to Sections 6. Is and 16 of the act. These re-
late to the preparation, filing and publlca-
ton of tariffs, powers of the commission
over rates, and procedure in the courts
Amendments are also proposed for Section
g. the Observation-Disclosures clause; Section
20. covering the filing of annual reports;
Section ). as to through routes and through
rates, and Section 10, the penal section. An
amendment requiring import and domestic
traffic to be carried at the same rates is
suggested. but If Congress shall deem it
wise to Justify the higher charges on do
nestle than on imported traffic, then 1t is
submitted that some provision of law be en-
acted under which 1t VIII be practicable to
determine the extent to which discrimina-
tons through lower rates shall be made in