The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-02-27
RATE CUTTING.
A Authority Blames the In
terstate-Commerce Commission.

New York Financier.
The Commission. I'm
its fifteenth annual report. a synopsis OF
which has been published in these columns.
makes some very grave charges against
the policy pursued by American railways
in getting business. The charges, it is true.
are only indirect. but the commission mas
confessed its inability TO enforce the pres
ent law owing TO secret practices adopted
by the railways in granting rebates. and
therefore urges on Congress the necessity
of giving it added arbitrary powers for the
purpose Of keeping the railways in line.
1t is not pleasant 10 be accused OF GRIM
inal practices, and that the more agrees
sive railway managers or the country have
sought to clear themselves OF these charges
Is but "a natural result Vice President
Hines, of the Louisville x Nashville, for
instance. has issued a pamphlet in which
he takes the commission severely TO task
as being itself responsible FOR any demor-
allied condition that may exist. lie ayers
that the commission is not so much in
terested I'm enforcing the law as in dis
crediting its own authority. To quote his
own words: offended because the courts
overruled its erroneous assumptions OF
power in other directions, il has been sulk-
ing for ~years-trying TO create the false
impression that the act is worthless and
seeking 10 use the rate cutting, which IL
I'LL aAA0 " AaN HAtN ElANAs o. a
basis for demanding radical powers which
would in no way tend 10 correct H." These
are strong words, but they form the con-
cluSiOn or a long argument made 10 prove
the responsibility OF the commission. The
latter. II Will be recalled. sought 10 prove
that without further power IL was helpless:
that unless Congress gave il authority to
enforce its own decisions without the ad-
judicatiOn OF the courts no betterment OF
prevailing conditions was TO be expected.
In other words. the commission asked TO
no IFS own nFnGRHmf1nR attorney and 1IUrn
as well. IL will be admitted that things
must have reached a critical point IL this
request is 10 be considered justitiable. AS
a matter of fact, il is not shown hat such
an extension of authority is necessary. The
commission has been sustained by the
courts time after time. Ii has, as Mr..
Hines proves. the widest powers OF inves-
t~igatiOn. including the right TO call for
the production of all books, documents and
papers, and ii can require the district at
torneys of the United States TO prosecute
all violators. Despite these powers, how
ever. which the courts have upheld, the
commission goes out Of its way 10 attack
the federal judiciary, in its contention that
il cannot secure full aid in prosecuting
or Furnishing delinquents. This charge is
based on the Interpretation of a decision
that the courts hold it necessary in i'm
posing a sentence not merely that the rail-
way paid a rebate TO a particular shipper,
but IL must also be shown that IL did not
pay the same rebate to some other ship
per, which. as a practical matter, is I'M
possible. In disposing OF this argument, Mr..
Hines contends that the very decision re-
ferred TO distinctly holds that the mere
fact Of paying a rebate from the tariff
rate is in itself an offense. regardless OF
what was paid TO any one else. and the act
makes this offense punishable by a fine
which may be as much as 5000. The COM
mission, up TO this time, has very much
the worse of the controversy. IL cannot
strengthen its case by attacking the courts.
for the language of the latter is so clear
and explicit that Il can be used as proof
unimpeachable In showing that the commits
sion, and not the judiciary, was IN error.
The course OF this board within the past
several years has not been such as 10
add TO its popularity or strengthen the
respect formerly rendered TO IL. Probably
the railroads are not ~sinless. but for all
that. if the commission cannot with all
the facilities and authority now at hand,
do more than to sit dOwn hard and hurl
charges at railway managers and courts.
it is time that Congress legislated IL out
OF existence or took steps 10 more clearly
specify its duties. Thinly disguised billings
gate is not argument and does not add to
the dignity OF the board.