The Grit-advocate., 1904-12-30
Washington News Letter.

OF some measure providing Tor ledeTai
control OF railway rates promises 10
bear fruit, although it is unlikely that
such legislation will be enacted at this
session OF congress, and it is also I'M
probable that the the power to fix rates
will 5e conferred on the Interstate
Commerce commission. No one ap-
preciates these facts better than the
president, but he explains that no man
ever drove home nail with just the
necessary amount OF force and no more,
and then he proceeds to strike sledge-
hammer blows on every member OF
either house OF congress who calls at
the White House. The result is that
members Of congress, as we'll as some
Of the leading railway officials, have
become convinced that the time has
arrived when something must be done
and they are putting their heads to-
gether with IA view to devising q salts
factory law.
The fact is that the problem is most
complex and its adoption is not easy.
1t has always been the policy Of the
government to preserve intact, so far
as possible, the three coordinate
branches of the government, the execu
tive, legislative and judicial. The
supreme court has held that the de-
term nation CT what constituted just
rate was judicial function, whereas
the fixing Of Il future rate was legis-
lative function and the interstate COM
merce commission is largely an execu-
tive body, acting under the direction
of the president A fairly perfect law
must take cognizance Of these facts
and Of previous supreme court decis-
ions or it will result in nothing but ex-
pensive litigation, to be followed by its
nulliticaton. These are few OF the
legal perplexities of the problem to be
solved.
The practical features OF the prob
lem are almost equally complex. Raj
road rates vary in different sections Of
structiOn and operation. Again, GER
cain railroads grant certain reductions
in rates with view to establishing
special business interests along the
line of their road, notably the Com
modify rate" Again, granted for
much the same purpose, is the mill
ing in transit rate" whereby certain
roads grant special rates on raw ma
terials manufactured at some point on
their line and reshipped as a finished
product. For these reasons railroad
rates seem bound to vary even in
given secti, Of the country and the
commission or body which attempts to
define what does and what does not
constitute fair rate and to pre-
scribe just rate will be confronted by
a knotty task. One point is certain,
however, and that is that good will
come out Of the presidents determined
pushing Of the Legislators In his party,
and if a prediction can be made with
safety it is that the party leaders will
arrive at some definite agreement be
fore congress convenes year hence
and will place law on the statutes
during the first session of the Fifty
ninth congress.
When the Philippine public i'm
provement bill passed the senate re-
Gently an attempt was made by certain
democratic senators to SO amend the
railway section at to compel such rail
roads as might benefit by the law to
incorporate in their charters dcclara-
tion of the rights of the Philippine
government to fix the rates to be
charged by such roads. So attractive
did the proposition appear that ten
republican senators, including Senator
formerly Attorney GeneraD Knox,
voted for 1t. The amendment was
however, only coup of partisan poll
tics for the reason that the Organic
act OF the Philippines provides that no
charter shall be issued to any railroad
except upon the understanding that
the Philippine government shall have
the right to fix the rates charged. |
The most important provision Of the
Philippine public improvement bill
was the railroad section which was
completely redrafted by Senator
Spooner just before the passage of the
act. This section authorizes the Phil |
ippine government to guarantee four
per cent interest, for period of thir-
ty years, on bonds issued in return for
funds actually invested in system Of
Philippine railroads. AS redraftcd |
interest is guaranteed a first class lien |
on the railroads and also constitutes
any interest money advanced by the