The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1897-12-31
FIXING OF RAILROAD RATES
SHOULD CONGRESS LEGISLATE ON
THIS SUBJECT9

who Questions Power of Congress Under
Constitution-Lowest Rates In World in
This Country-They Have Brought Bank
ruptcy and Reorganization.
New York, Dec. 90.-A pamphlet en-
titled Should Congress Leglslate on
the Subject of Railroad Rates?" is is
sued by Aldece F.. Walker, chairman
of the Atchison, Topeka and Santa Fe
Railroad company. Mr. Walker con-
siders the following three phases of the
subject: That of constitutional right;
that of practical common sense, and the
demand for additional power in this di-
rection in the last report OF the state
commerce committee. The reasons CIV
en- by Mr. Walker for questioning the
power Of congress to prescribe future
maximum rates, enforceable by injunc-
tion, may thus be eptomized: First,
no such power was contemplated by the
constitution has not yet been so con-
strued by the supreme court; third, the
words regulate commerce. do not i'm
ply its existence on any fair construc-
ton of their meaning; fourth, such a
construction would interfere with and
destroy the rights of property assured
by other clauses; fifth, the clause can
not be so construed without involving
the power to regulate the rates to be
charged by vessels engaged in COM
merce with foreign nations and also
prices generally in commercial transac-
tions.
The practical side of the subject is
then taken up and the question Is ask
ed, Suppose congress has the right to
fix future railway rates upon interstate
traffic; Is the exercise of such a power
desirable or wise?" Mr.. Walker in re-
ply to this question says that if con-
gress can confer such a power upon a
commission it can exercise it directly
by act. To see where this would lead
several concrete cases are suggested.
AS, for instance, suppose a bill should
be introduced to prevent railroads from
transporting goods from California to
New York at less than $1.50 per hun
dred pounds, on the ground that such
transportation has a tendency to injure
the orange growers of Florida or to
reduce rates from both states in order
to exclude fruits from other countries.
Clearly, Mr.. Walker says, we have fun
damental difficulties in relation to the
exercise of rate-making powers by con-
gress which would seem to reach ex-
periments impracticable and dangerous.
To show it was not the intention of
congress to confer such powers upon
the interstate commerce committee he
quotes from the senate report accompa-
nying the bill that "it would be inexpe-
dent and impractiable to attempt to
adjust existing inequalities by any sys-
TEN Of rates established by legisla-
tion.''
Mr.. Walker shows that although the
supreme court has decided that no au-
thority to make rates was conferred on
the Interstate commerce commission, an
effort is to be made to secure legisla-
ton looking to this end. What, Mr..
Walker continues, has occurred since
1887 to make this proper legislation for
congress to undertake? Have we not
the lowest rates in the world? Have
not bankruptcy and reorganization
been the almost universal experience
of railroad companies? But, some one
says, when unjust discrimination is
charged, the commission should have
the power to say that the reduction is
required to overcome the discrimina-
ton. The injured party has a right
of action, the same as for any other
pecuniary injury; even more, for he
may elect between proceeding for dam
ages or restraint, and the commission
may not be infallible There are two
ways in which railroads may be man
aged One is bureaucratic; the other
competitive.
The present demands of the inter-
state commerce committee as outlined
in its annual report are not discussed.
Mr.. Walker says that in view of the
fact now generally conceded that the
prohibition of pooling was unwise and
has prevented the obtaining Of many
good results hoped for from the inter-
state commerce law, 1t seems that con-
gress will be compelled to authorize
pooling agreements as an aid to the
regulative statute. Pools can never
efface or weaken legitimate competition.
The control asked for by the commits
sion, Mr.. Walker says, is far beyond
what has been provided for In the For
aker bill.
The powers outlined in the commits
sion report cover all that the widest ad-
vocate of bureaucratic system could
desire They would confer upon the
commission absolute power over all in
ter-state railway rates. The power is
now exercised through the agency of
thousands Of experienced men, each rep
resenting the interests of his line. 1t
is subject to the control of general laws
and also to the domination of all man
ner of competitive forces. For this ar
rangement it is proposed to substitute
the Judgment of five men-of three, if
the five do not agree-trained as law
yers representing five localities only,
with a power to ruin industries, to boom
towns. to determine whether the Kan
sas farmer shall burn his corn for fuel
ore send it to the market" and with
power to make or break every railroad
corporation in the land; to send any
railrad stocks or bonds up or down in
the stock market and to limit all expor-
tation, which is involved in rulings al
ready made by the commission, to ex-
clude Baltimore or Boston or any other
CITY from the transaction of export
business by changing existing diferen-
tials, to array north against south and