The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-03
RAILROAD LEGISLATION


president of the Louisville & Nashville
railway, has charged the interstate COM
MERGE commission with being itself blame
able for rate cutting through it's miscon-
struction Of the law and the decisions of
the courts as to convictions for rebates.
The commission is accused Of taking the
position that it IS necessary to show that
railway company not only paid a rebate
to certain shipper, but did not pay. the
same rebate to another shipper the law.
rs judicially interpreted making the fact
OF paying 4 rebate from the tariff rates
o punishable offense, regardless OF what
was paid to any other shipper. In either
case, however, 1t would seem that the
commission would be handicapped by the
supreme difficulty Of getting at the docu
mantary evidence Of the making of re .
bates This is the weakness of the pres
ent law.
The measure introduced by Congressman
Corliss Of Michigan appears to be the best
substitute for the present interstate COM
merce law which has appeared. 1t was
prepared by the executive committee OF
the Interstate commerce law convention,
held at st. Louis in November, 1890. This
act makes it the duty Of the commission
when it finds that carrier has violated
the provisions Of the act with respect to
any rate. to say what change shall be
made in the future, and makes such order
take effect at the time specified by the
commission, which shall not be less than
twenty days after service of notice. The
defendant may apply to the circuit court
=, of the United States, which shall suspend
the order OF the commission for thirty
days. If the court finds that the order of
the commission be lawful and just, it shall
vacate the order of suspension, and the
order OF the commission becomes opera
tive. The law provides further for appeal
to the supreme court, but such appeal
shall not operate to stay or supersede tho
order Of the circuit court. The orders Of
the commission are made obligatory for
only two years. Refusal to comply with
the order OF the commission will be en-
forced by mandamus or other summary
process. The law also provides for COM
polling the production of the books and
papers OF carriers and shippers and the
exempt from prosecution on account of
their testimony.
The unrestricted power of carriers to fix
transportation charges on traffic, reach
Ing billion dollars year, is quite too
serious matter to be permitted, and the
subject Is lightning to receive rather
robust attention, since, under the COM
munity OF interest" plan, about three
fifths Of the railway mileage OF this coun-
try has been brought under the control of
about half dozen capitalists The way
Is open TO impose proper restrictions upon
this increasing power, which bears with
1t a menace to the interests of the public
The principle has been duly established by
the federal courts that railways are pub
lie highways and that railway corporations
are created for public purposes and per-
form public services, which should be per-
formed as if performed by the govern
ment itself, giving an equality of charges
and privileges to all, the charges being no
greater than enough to pay the cost OF
maintaining service and securing re:-
sonable return upon the capita! actually
invested in the plant The reports of the
interstate commerce commission for the
last two years show that the railways of
this country Tad surplus of S165, 900 900
after paying interest and dividends and
Tor permanent improvements. In this th.re
is suggestion that the Arrangements
have not paureriZed themselves.
The Corliis bill says nothing, about pool
Ing, but it appears to be making provision
for the protection Of the public as we'll AS
the railways. The federal supreme court
has decided in behalf Of the railways that
1t is unlawful for a state commission to
establish rates of transportation which
will not admit Of the carrier earning such
compensation as, under all circum stances,
is just to it and to the public. Such regu-
lation, the court affirms, would be depriT-
Ing the carrier Of its property without due
process of law and denying it the equal
protection of the laws. 1t is not proposed
in the Corliss bill that this principle sh Ill
be violated in one iota