Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-27
CHARGES PARTIALLY
The Railway Vice President
Scores Interstate Commerce
Commission
NOT AN IMPARTIAL TRIBUNAL
Claims It unwise and Unjust TO Give
Commission Practically Final Power
Over Capital Invested in RaiIroads--
Say Material Welfare Of Country Not
Dependent on Rate Making.

Philadelphia, Dec. 27-The second
session of the Fifteenth Annual Amer
lean Economic Association today war
devoted to the discussion of the topis
Public Regulations of Railroads Th
principal speakers were Charles A
Prouty, interstate commerce comn1ia
sioner, and Walter d. Hines. vice pres
ident Louisville & Nashville railroad
Mr.. Hines paper was entitled, "Leg1ss
latiye Regulation of Railroad Rates
and scored the interstate commerce
commission. He said in part:
.Agitation by the interstate COM
merce commission for rate making
power began in 1897 in which year ire
supreme court decided the maximum
rate case. In that case the commission
had fixed rates which, II enforced.
would have materially reduced rates on
practically all south bound business
east of the Mississippi river. me SUI
preme court showed clearly that con-
gress had not given the commission
this necessary unlimited and extrema-
1ly important power, but it pointed out
that the commission did have import
ami functions designed to secure bots
Ireasonableness and equality OF rates
The commission criticized the supreme
court. denied the courts statements
land has made erroneous impressions
that it is now powerless and Also tnal
the rate making power would prevent
secret rate cutting. The proposed
mower would necessarily be free from
any substantial judicial review and
would be a complete abandonment Of
the method Of regulation provided
by congress which, despite al asser-
tions to the contrary, has never been
proyed insufficient. Any dissatisfaction
I is due to the shortcomings of the conn
mission rather than to defects IN the
law The interstate commerce COM
mission is neither an expert nor I'M
partial tribunal, as is proved by itas
decisions and the action of the courts
upon them.
1T is unnecessary, unwise ana un-
Just to give such a tribunal pract ctfcaHy
final power over private capitai fn-
Eyested In railroads. At present tfsx
mistakes of railroads can be adequa tefy
corrected In the courts. Under the pro-
posed method, mistakes of the commas
sion could not be corrected anyWnera.
The claim that low rates are due 70
railroad competition and thas as such
competition is disappearing. power f0a
reduce rates should be given to the
commission is fallacious beci,use gen
orally a low basis of rates is due 20.
competition between markets and be-
tween products and to the fact thai
economical railroad management ne-
cessitates constantly increasing vol
ume of traffic, and these conditions
are bound to continue. Some mems
bers of the commission argue that rates
ought to be reduced but they have not
exercised the authority they have to:
put that view into effect. However, de-
spite the increase in the volume cf
traffic and inefficiency in general rail.
road earnings are diminishing and cost
the per ton per mile is increasing AI-
tho traffic conditions are not likely to
permit increasing returns still as an
abstract proposition railroads undoubt-
edly have right to share in the gen-
eral prosperity when all other SER
vices and commodities increase IN
price. The railroads of this country are
largely responsible for it's industrial
and commercial supremacy. Self in-%
terest will undoubtedly prompt them
to do everything in their power to-
maintain that supremacy. Certainly
the material welfare of the country
has not depended in the past upon rate
making by the commission, and it can
not be promoted thereby in the future