The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-01-14


Adhered to TariGs-secret Con-
cessions the Dangerous Element
Large Part of Railroad Bust
ness Conducted on Illegal Rates.
WASHINGTON, Jan. 13.-The an
nual report Of the interstate commerce
commission was given out today. IN
1t the commission says:
IN previous reports to congress- attention has
peen called to the vital respects in which the
sct mas proved defective and INADEQUATE
some or its provisions were early seen TO be-
imperfect, while others were so uncertain and
ambiguous as to give rise to protracted Iiti-
gations resulting, finally, in authoritative con-
States The e oG 9 ak the United he
pains to explain the various questions which
nave mus been decided, and the effect OF
these adjudcations in defeating the purpose of
the act To state that the law in its present
condition cannot be enforced is only to repeat
what has already been said Until further
and important legislation is enacted the best
enorts OF the commission must be feeble and
disappointing. In last annual report We
not only set forth in general terms the neces-
sity for amending the law but formulated
and proposed the specific amendments which
appear to us positively essential. With the
renewal of the recommendations no duty of
charged
Meanwhile the situation has become intol-
cradle, both from the standpoint of the public
ana the carriers. Tariffs are disregarded dis
examinations constantly occur the price at
which transportation can be obtained is fuctu-
atlng and uncertain. Railroad managers ara
dlstrustfulfof each other, and shippers all the
while In doubt as to the rates secured by their
competitors. The volume of traffic is so I'M
usual as to frequently exceed the capacity of
equipment. yet the contest for tonnage seems
never relaxed. Enormous sums are spent in
purchasing business and secret rates accorded
Tar below the standard OF published charges
The general public gets little benefit from
these reductions, for concessions are mainly
connned to the heavy shippers. All this aug
nents the advantages Of large capital and
tends to the injury and often to the ruin o.;
smaller dealers These are not only matters
| OF gravest consequence to the business well
fare of the country, but they concern in no
less degree the higher interests of public
morality.
RATES CAN BE MAINTAINED.
| 1t is perfectly clear that observance of tariff
| rates is entirely within the power of the rail-
| way managers, and that 1t would be vastly
| for the advantage Of the railways as a whole
1t would, however, be difficult and often ruin
GUS for one railway to maintain rates while
| It's competitor makes secret CONCESSIONS and
| 1t is also to be admitted that justified or not
| the results are substantially as claimed by the
| carriers. A large part of the railway bust
ness is now transacted upon Illegal rates and
IN certain quarters charging the published
rate is the exception. The results. are gross
determinations between individuals and gross
| preferences between localities which most al
ways favor the strong and Cypress the weak.
Probably no thing today does so much to
force out the small operator and build I'D
those trusts and monopolies against which
law and public opinion alike beat in vain, as
determinations in freight rates. A further
result Is that railroad business is carried on
largely in conceded violation of law. This
condition the present law is powerless to con-
troll The criminal remedies have been ap-
piled. and some convictions have been had
but no substantial effect has been produced
ano no satisfying results can be obtained from
that course. The fact may be morally GER
tain, but the name, date and amount cannot
be shown with the particularly and certainty
required by law
If unrestricted competition produces dis
elimination: one obvious way to prevent such
| discrimination is to restrict competition.
| whether existing conditions would be i'm
proved by legalizing railway contracts would
depend upon the extent to which the agree
ments were made and actually are enforced
by the carriers. So far as the commission can
| obtain information, there is at present no
| other great nation which endeavors to enforce
| competition between it's railways although
In many cases that method has been tried and
abandoned. But just no other great
| ton today enforces competition between rail-
| ways so there is no other great nation to-
! day which does not regulate and control rail-
| way rates.
RAILWAY REGULATION.
| If this country is to change its theory OF
railway regulation, it should adopt the new
| theory in its entirety. Carriers ask authority
| TO combine in order to fix their own rates or
| should the people who grant this extraor-
| binary privilege reserve to themselves the
right to determine this question 1t does not
necessarily follow therefore, that permission
should be given the carriers to make these
combinations The evils attendant upon re-
| stricted competition might be greater than
the benefits derived from it, The rate should
be removable as well stable and uniform
and hitherto competition has been mainly
relied upon for that purpose. Now If compe-
tltlon is to be removed what is to take the
place of 1t? The conclusion of the commits
sion in reference to agreements of this sort
and the degree of control over rates which
should be exercised by public authority are
substantially as announced in its last annual
report. The amendments there recommended
would not invest the commission with any
different or any greater authority than it
was long supposed to possess; they would
simply enable the commission to carry out
the purposes of the act as declared in its first
three sections If the present commission
is not qualified to discharge that trust. then
a more competent tribunal should be created.
If combinations in restraint Of competition
are to be permitted, the following additional
observations should be borne in mind: First,
to permit only a limited and feeble restraint
would doom the experiment to failure before
1t was tried; but it might be well to provide
that the provision granting the privilege
should expire after certain number of years
by its own limitation. Second the contract
itself and everything done under it should be
open to public inspection. Third. it would
probably be to the advantages of both the
public and the railways IL the public had
some voice or representation in any organi-
cation Of the kind under consideration III
the public appointed one or more of the
board of managers to whom the shipper would
feel free to submit his complaint and who
would bring the shippers views before she
ASSOCIATION 1t might do much to promote lust
conduct and harmonious relations between
the railways and the public, and thus provo
materially beneficial In high degree.
REVISION NECESSARY
Whatever view may be taken Of this phase
Of the subject the necessity for a thorough
revision Of the act cannot be overstated Tho
principles Of this law. set forth in its
first three sections. conceded to be SOUND
and benefcent but at present they amount
to little more than a declaration OF senti-
ment. Some of the minor features of the
statute are fairy sufficient, but the machinery
for enforcing It's substantive provisions Is ia
tally defective. Every consideration of pri-
vate justice and public welfare demands thar
railway rates shall be reasonably uniform to
all shippers and equitable between all COM
munities. Until needful legislation is sup
piled that demand must remain unsatisffed
and the commission must continue to rest
under the responsibility of duty which ir
Is powerless to discharge.
The Wrong Record.
mo. thank goodness. he isn't calling here
any more" exclaimed the pretty girl in blue
with stamp of her foot 'I verify believe