New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-13

average man imasines. The common carriers
IN TINS country are permitted under the law to
charge practically any rate they please for the
transportation of freight. and when II is r.
inemoered that the cost of practically every
eoihiIou''S dealt in must necessarily be based
TO large extent on the rate of freight which
the commodity must paw to be transported from
the source OF production TO the markets II
can De readily seen how important and indeed
vital the question of freight rates is to the en-
tire business OF the country What Is termed
the transportation tax-that is railroad
earnings from freights-in 1908 amounted to
Sl,33S.O20,O28. while the total receipts of ,hs
government in the same year footed ND s6aA
Willis. so 1t will be seen that the receipts of
the railroads from freight transportation are
more than twice as much as the entire revenue
OF the government. and vet the people from,
whom the railroads received their ncalculsbv
valuable charters and privileges have practical
~ nothing TO say about the amount of the tax
they are called upon to pay
The only recourse thew have under +be oct 60
regulate commerce is that when shipper
reels that the rate of freight which he is charged
by his railroad Is exorbtant or unjust ha can
appeal TO the Interstate Commerce Commission
and after the commission has held hearing on
the case 1t has power to do nothing more
than 10 express the opinion that the rate COM
planned OF is unfair II It so finds and to order
It changed. II the railroad refuses to make any
change. the only course left for the commission
is to submit its ruling to a Circuit Court OF the
United States. and hitherto it has taken an
average Of from five to seven years before de-
cision was handed down: and in the interval
there is nothing to prevent the railroad from
keeping IN force the unjust rate and the ship
per is forced to Pay IT,
careful reading of the Presidents recon-
mendations the subject will disclose that
there is nothing radical in his ideas: that the
legislation he indorses provides simply that
when the commission. after a full hearing, has
found a rate to be unjust, it may have power
TO put rate it considers fair into effect i'm
mediately. while the railroad has the privilege
Of contesting the decision in the courts. instead
OF the shipper One objection to the proposed
legislation brought forth by the railroad inter
ests is that If the court should find that the
rate put into effect by the commission n
just, it would be practically impossible to e.
cover the loss sustained by the carrier while the
rate obtained. The shipper at present is in
that position. As a matter of fact there have
been few practically no cases in which a
complaining shipper has attempted to recover
losses sustained bv unfair railroad rate and,
as the advocates of the proposed legislation
point out, provision is made In the measure for
the speediest hearing in the courts Of all cases
involving traff1c matters, so that, even assuming
that the commission should Ak unjust rate
(Which is unlikely the loss sustained by the
railroad would be small. Meantime, It's interest
would be TO expedite. not as at present TO delay,
the litigation.
II may be said without hesitation that II the
Presidents recommendations are enacted into
law they Will be OF benefit rather than a detri-
ment to railroad interests. 1t Is matter OF
record. and some conservative and broadminded
railroad men themselves point out. that the rail-
roads were prosperous for the ten years after
the act 10 regulate commerce was passed and
while the supposed power Of the Interstate Com
merce Commission TO correct rates undis-
puted. Conservative railroad men also aoknowI-
edge that If such legislation as is proposed
by Mr.. Roosevelt is not enacted, much more
radical legislation will be pressed; that the So
ciaIistic idea OF governmental ownership VIII
gain wide currency and that chaos may result.
Possibly. only persons who in close touch
with the feeling in the West realize the danger
that confronts the country. Complaints from
all that part of the Union against the railroads.
alleging discrimination. unfair rates, unjust
charges for service at terminals, exas
perating and inexcusabe delays in the settle
rrent Of claims. etc. are OF the btterest charac-
ter There are upward OF FIVE hundred thou
sand intelligent and influential business
banded together in this movement to regulate
freight rates throughout the country and this
movement in the last six months has gained an
impetus which has been reflected finally In the
Presidents recommendations to Congress- The
alleged fear expressed by railroad interests that
the commission will attempt to fix rates for the
entire country is without foundation. Chair
nan Knapp has gone on record as saying that
this would be impracticabe, II not absolutely
impossible. Even in Texas. where the State
commission exercises more power than any other
commission established by State laws. the rates
are made originally by the railroads. In fact.
all that advocates Of this legislation ask is that
the railroads be placed under governmental SUI
pervision similar to that of the national banks.
The banks have prospered under such super
vision and there is reason to believe that
the railroads would suffer III any possible way:
indeed. it Is my belief that the result would be
highly ben fetal to stockholders. T NJ.
New Yo.k, Dec IL. 1904
INSURANCE SUPERVISION.