The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-19
CARRIER AND SHIPPER
PROTECTION OF BOTH To BE URGED
BEFORE CONGRESS-.
Present Interstate-COmmerce Law In
adequate tO Meet the Demands
of the Situation.
ACT FREQUENTLY VIOLATED
RAILWAY OFFICIALS WEARY OF
PAYING ENORMOUS REBATES,
And Would welcome More stringent
LcgisIatiOn-ReinfOrcement OF
the Act Recommended.
s.....1 % b 1ndianapoli. Journal.

EIEEA1A 10 WE 1AAAaH
WASHINGTON. Jan. 1z.-Public atten-
ton has been sharply directed during the
past ten days 10 the hearings before the
Commission. The tes-
timony submitted by railroad officials was
OF the most sensational character. PrOmi-
nent railroad men admitted under oath that
the systems with which they are identified
have granted rebates for a long time; that
It had become a common practice; In other
cases fragrant determinations were ac-
knowledged. and in Kansas City the COM
mission was presented with evidence show
ing that private rates had been given to
favored shippers TO the detriment Of the
local grain men. 1t was brought out at
this hearing that each road was reputed to
have one favored shipper. Special atten-
ton should be directed 20 the fact that In
the recent hearings the most damaging tes-
timony has been advanced by the railroad
officials who appeared before the commits
sion. The admissions made are undoubted-
" the result OF a steadily growing convic-
ton In certain railroad quarters that legis-
Iation OF a radical character IS necessary
20 adjust interstate in the light
OF prevalent conditions.
Coincident with the hearings OF the COM
mission is the presentation in the House of
Representatives OF the bill proposing
amendments 10 the
act, introduced by Hon. J. B. Corliss. of
Michigan. and known as H. r. 1897. There
is no longer any question as TO the ne
cessity for legislation giving potency to the
rulings Of the Interstate-cOmmerce Com
mission. II has been demonstrated time
and again. and the recent hearings in the
West come at an, opportune time TO &C
centuate ii.
WITHOUT POWER
II is a well-established fact that the cost
OF transportation determines generally.
throughout this and other countries,
whether or not IT is possible for individuals.
fms OF corporations TO transact business.
Under the existing circumstances the COM
mission. which stands in the attitude OF
the representative Of the United States, as
between carrier and shipper. is absolutely
without power TO give any effective ut
rerance or opinion. or to lay down any
binding rule. The commissioners themselves
have repeatedly stated this fact. The right
OF the commission to prescribe a remedy,
subject 20 appeal TO the courts, Is fair 70
shipper and carrier. and would be effective.
fragrant violations Of the law by the
carriers are numerous. IL Is a matter OF
history that the Standard Oil Company. in
the past. has received from various rail-
roads enormous preferences. One Of the
AAAb5 WAAAlA ACa " NI0 VI tic
interstate-cOmmerce law was the hope Of
restraining preferences OF that kind. 1t has
been demonstrated, however, that such dis
ordinations, though In different gutSe, still
continue. Attention Is not called to this
fact for the purpose Of stirring up senti-
ment against corporations in general or the
Standard Oil Company in particular. The
determinations are purely business prop
ositons. The transportation lines, as at
present constituted, partake, to a certain eX-
tent. OF a monopoly. The various roads are
80 closely associated and unity of action
SO complete that the shipper Is at the
mercy OF the carrier, and the former Is
denied that perfect freedom of action which
the latter demands for itself. A monopoly
IL, by its derivation and in its simplest
definition. the giving TO one in the sale of
an article an advar-age which all do not
possess. Let IL be observed that in the
production and handling OF the staple COM
such advantage can be obtained is in the
agencies OF transportation. Grain is an
article OF prime necessity. Everybody can
can grind 10: everybody can sell IL; but il
must be transported from the railway sta
sumer-often by one route, at most by few
routas-and the expense OF this transporta-
ton Is usually a considerable part OF its
price TO the consumer. 80 with most OF
the prime necessities OF life. Ordinarily
be open to all alike; the avenues Of trans
portation are the exception.
A WISCONSIN CASE.
A striking instance. showing the necessity
OF making effective the rulings OF the COM
mission when existing rates are found,
upon a full hearing OF all parties in in
terest. 70 be unreasonable or unjust. arose
I'm a case brought before the state railroad
commissioner OF Wisconsin about two years
ago by the Wisconsin Cheese Makers As
ISOLATION. composed OF more than 1900
cheese manufacturers in the State. 1t
represented a large interest. the produc-
ton OF cheese IN the State OF Wisconsin
being One-fOurth Of the entire output in
that the rates OF freight on cheese from
points in Wisconsin TO Chicago were &C
tually one-third greater than from points
IN the dairy region or the state OF New
York. the distance from the latter being
nearly three times as great as from the
former. The cheese makers of Wisconsin
were thus compelled 10 compete in their
natural home market with the product OF a
distant Eastern State, at a serious disad-
locals brought to New Castle" but an
embargo was placed upon shipments from
the natural source OF supply. To give the
exact figures. the rates from points IN
Wisconsin. 30 TO 20 miles distant from
Chicago. were 40 cents per 100 pounds. and
from points in New York, $50 10 $50 miles
pounds. Although the case related TO in
t~erstate traffic, the Wisconsin railroad COM
missioner was DESTROYS OF securing such
relief as ne might be able 70 by his in
fuence. He held several conferences with
the railway officials on the subject and re-
ceived encouragement 10 hope for a sat
isfactory adjustment OF rates; but. after
months OF delay. he was notified that no
change would be made Presumably the
railway officials attempted 10 secure an
adjustment" by procuring an advance
in the rates from New York IN which
they were unsuccessful. The Cheese Max
ers' Association was advised TO make COM
plant 10 the Com
mission. but in view OF the limitations set
upon the authority OF the commission by
the decision OF the Supreme Court. the
association was discouraged from under
taking any further proceedings and the In
Justice has continued 10 exist 10 the pres
ent time.
A FLORIDA CASE.
When Judge Cooley was chairman of the
Interstste-commerce Commission a COM
plant was received alleging the unreason-
ableness OF orange rates from Florida TO
Eastern points. which had just been In
creased about 30 per cent; that IS. from 80
cents 20 40 cents. The case was heard, both
sides participating In the trial. The in
creased rate was found to be unreasonable
but was not ordered reduced 10 the point
from which IL had been raised. IL was
dxed by the commission I'm its order at
g cents. Suit was brought In the court. the
carriers having failed TO obey the order,
TO enforce Il. The case was sustained by
q master appointed by the United States
Court In Florida An appeal was taken TO