New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-14
THE CONTROL OF RATES.

Whether any satisfactory solution of the raul
way rate problem is found in the immediate
future or not, it is already clear that the Presl
dent performed a public service by the sug@es-
tions of his Message The country has been set
TO thinking on the subject. The necessity or
supervising power to protect the rights OF the
public in the operation Of common carriers IS
well recognized. But there is reluctance TO
extend that power to the most vital matter
of public interest the control of rates, for rear
that the power might be abused. The enforce
ment llpon the railroads of an unreasonablY
low rate would depreciate the value of vast
amount of property. Capital is extremely I'M
willing to concede to governmental authority
any such power over its earnings, especially III
view of the possibility of some radical admin
istration's attempting to curry popular FAVOR
by extreme measures. Yet the fear that gov
ernmental power may be abused Is never a
good reason for leaving in private hands an
ungoverned power over the community. The
task of the statesman is not TO leave the rail-
roads uncontrolled. but TO provide adequate
safeguards against the abuse Of control
1t was long supposed that the Interstate Com
merce Commission, in case it found a rate ex-
cessve, could declare at what point the rate
was no longer excessive. 1t has. however, been
held by the courts that, while the commission
might order a company to cease and deslst
from charging any particular excessive rate, 1t
must stop there and leave the company free
to fix any other rate. though it was only an
infinitesimal reduction This ruling leaves the
railroads masters of the situation, and the
question now turns upon the establishment Of
some real control, such as it was supposed the
Interstate Commerce Commission could exer-
else 1t is suddenly discovered that no commits
sion could be safely trusted with such power.
Yet curiously enough, as Commissioner Knapp
has pointed out, in the ten years from 1887 to
1897. when the commission assumed that power
and the railroads conceded ii, there was no
trouble. Complaints in only moderate number
were made and investigated. and reasonable
rates determined.
There would perhaps be little opposition now
to such determination if it was stipulated that
q finding should not be enforced pending an
appeal to the courts. 1t is said that a company
might suffer great loss from charging rate
which was set aside on appeal. But. on the
other hand, if an appeal operates a stay, eX-
tortion may be practised on the whole public
for four or five years before the just rate is
finally established. If the railroad or the pub
lie. or the other, must take risk, it would
seem as If consideration should first be given
to the public.
Careful study, however. should lead to a law
which would make this risk trifing The rail
ROADS should retain the lnltatlVe IN nAlng rates.
But some body should have authority to pass
upon their justice in review and enforce its
finding Immediately. 1t is absurd to say that
no official body have the necessary knOwl-
edge. Even if Il has not the technical infOrma-
ton needed to make new rates, 1t certainly can.
after a hearing Of both sides on briefs and
counter briefs, iudicially determine what is
reasonable. If the Interstate Commerce Com
mission is not in constitution or personnel ade-
quate TO the task, American craftsmanship
should be competent to devise some other tri-
bunai which can be trusted Possibly spe-
cial court, whose judges with the constitutional
tenure would be free from the influence Of
popular prejudice, might do the work
The method Of procedure is a matter calling
for careful study. There should be crude
legislation on the subject but the question
should be kept before the public and Congress
until a solution is found 1t cannot be put
aside on the plea that rates will regulate them
| selves. and that should not resort 10 artiti-
! cial contrivances. The railroad corpora tons
| and combinations themselves artificial con-
| trivances. With their artificial powers they
run counter to natural law and beyond the ac
| tivities of natural persons. They have purely
/ artificial power which in some spheres tran
! scends that exercised by the government. and
| il is the duty Of government. in the interests of
| the whole people. to make itself paramount to
| all creatures operating within its jurisdiction.
|