Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1902-12-27
"A SPECIAL TR|BU-
nal SUGGESTED
G. A. Prouty Thinks a Court Of
Commerce Should be Created to
Pass on Freight Rates and
Other Railroad Questions
MEMBERS SHOULD Be AP-
POINTED FOR LIFE


American Economic Association the fol.
lowing paper on the National Regula-
tion of Railways was read by G. A.
Prouty. Mr.. Prouty said in part;
"Five years ago the crying evil in rail
way operations was discrimination;
mainly discrimination between indivi-
duals. Today this is not true. The
vast consultations of the last few years,
the use of injunction to prevent depar-
lures from the published rates, the les
son which railroad operators themselves
have learned that competition in rates
is always suicide since it does not in.
crease business and does reduce rev.
enues, have largely eliminated such
competition. The discrimination disap-
pears, but in its place comes the danger
attending every monopoly, eXtortion in
the charge imposed.
"As these combinations have proceed
cd the public has been repeatedly as
sured that there was no danger of any
advance in freight rates. Rates have
been advanced and are still advancing.
Within the month all grain rates in
every direction from the fields to the
seabOard have been advanced another 9
cents per 100 pounds. Within the last
three years the combination of anthra-
cite coal roads has increased the cost of
domestic sizes to the consumer from 81
to So per ton. In sympathy, the com
mon stock of the Reading road alone
advanced in market velue from July,
1898, to July, 1909, $45, 900, 900, about
800 per cent.
"If the anthracite coal ombine ad-
vances the price of that commodity to
the consumer one dollar per ton, it lev
les upon the poverty of this country,
which uses that coal, a tax of fifty mil
lions of dollars annually in favor of the
wealth which engineered and profits by
that combine.
'How shall the public be protected
against this kind of extortion? Pub
licity in the completest form has been
tried, in vain. 10 this the Sherman
antitrust law has been applied in its
strongest form, in vain. 1t has been
suggested that the injured party might
sue in court and recover the unreason-
able charge from the railway; but the
coal dealer who pays the freight will
not sue, for he recoups himself by in
creasing the price to his customer, and
it would be no remedy to permit that
customer to bring suit and recover from
one to ten dollars, manifestly no right
to get back any portion of an unjust
rate already paid can be of the slightest
value; the imposition of that rate must
in some way be prohibited.
"It has for sometime seemed to me that
we must create special tribunal in the
nature of commerce court, which
should be charged with the duty of
reviewing and enforcing the orders of a
commission, from which appeal upon
questions of law, and perhaps those of
fact, should lie to the Supreme Court of
the United States. The members of
such tribunal would be appointed for
life and would therefore possess the
conservatism of court. They would
not come in direct contact with the par
ties in the same way that a commission
does, and hence would be removed from
those influences of quasi-personal ma
ture. They would stand responsible to
public opinion for the proper discharge
of their duties. After all, they would
speedily become an expert body, even
more familiar with the matters at issue
than commission itself, and would be
able to act intelligently and promptly
"Such tribunal would not be con
fined to reviewing and enforcing the
orders of commission, even though it's
duties were limited to the regulation OF
interstate railways. 1t happens contin-
ually that matters arise which require
the application of immediate relief,
which can only safely and properly be
given through the summary process of
court. 1t is quite probable, too, that
such court might be available in deal
ing with monopoly in other branches OF
interstate. commerce than railway trans
"