The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-19
ASKS POWER TO
REGULATE ROADS.
Interstate Commerce Commission
Makes It's Annual Report
to Congress.

Washington, Dec. 1e.-The interstate !!
commerce commission today contributes
to the enlightenment Of congress on what
has become the paramount problem
before the country. The commission
makes it's annual report to congress, and
after an opening statement concerning
railway operations during the year, the
commission proceeds directly to discuss
the regulation of rates and the amending
legislation deemed necessary to enforce
ment of the statute.
Under the heading Regulation Of
Rates. reference is again made to the
two principal objects of the act to regu-
late commerce, the publication and OBJ
servance of tariff rates, and the correc
ton, Oh complaint, Of established tariff
rates. The commission says in substance
that successful regulation Of rates de-
ponds upon the effective operation of both
branches of regulation. The act, as
amended by the Elklns law Of Feb. 10,
1903, and which deals with the publication
and invariable application Of tariffs, ap-
pears to be operating successfully as APP
piled to carriers subject to its provisions:
but, as elsewhere explained, it is believed
that these provisions might be made
somewhat more definite and extended to
apply to other agencies connected with
transportation which may now be used
as a means Of affording concessions to
shippers, which in effect reduces the cost
No Powers Conferred.
The commission calls attention to the
fact that there has been no amendatory
| legislation comforting power over this
| rate and making the orders Of the COM
| mission effective. In the present state Of
| the law, after careful and often extended
investigation, the commission may find
rate complained against to be unreasOn-
able and order the carrier to desist from
charging that rate for the future; but it
| cannot, tho the evidence may and usually
does indicate it, find and order the reason
able rate to be substituted for that which
has been found to be unlawful Any re-
duction Of the wrongful charge amounts
to technical compliance and frees the car
rier from any legal obligation under the
order. The commission can condemn the
wrong, but it cannot prescribe the rem
edy. Two cases Of unreasonable rates de-
cided during the year are cited as show
! ing some reductions from the rates found
unreasonable, but which were not so
great as those recommended by the COM
mission.
Carriers are entitled to ignore the order
of the commission and await the judg-
1nent Of the circuit court upon petition
by the commission and another trial Of
the issues in that court. The more i'm
portant the case may be, the greater the
benefit conferred upon shippers or COM
munities, the less likely is the order Of the
commission to be obeyed.
The commission must not only render a
j just decision, but one that Is convincing to
the carrier. to afford the relief from I'M
lawful rates contemplated in the statute.
If the decision Of the commission is right,
the public is entitled to have it go into
effect If it is wrong, its operation could
by the carrier in a suitable and summary
nrocee1ner in the federal court,
Recommends Changes.
The amendments to the statute recon-
mended by the commission involve no
fixing Of whole tariffs Of rates in the
first instance or at any time, but simply
the redressing Of transportation wrongs
shown to exist after full investigation,
! during which all affected interests have
been heard; and when an order Is is
sued against a. carrier under such pro-
cedure, it should by operation Of law be-
come effective upon the date therein
specified
In the fixing Of rates by carriers upon
all commodities for transportation in all
directions and between all points reached
by railroads, it is inevitable that much
injustice, unfairness, unreasonableness,
preference, and discrimination will be
practiced, notwithstanding the greatest
care and ripest judgment may be exer-
cised by the railway officials. These err
rors of. Judgment on the part Of the rail-
way officials constitute the reason for
federal regulation and the basis of the
present widespread demand for an amend
ment Of the existing statute which will
enable their speedy correction.
! The commission alludes to the per-
sistent Misrepresentation by many who
are interested in opposing this legisla-
} ton, that the amendments desired would
confer upon the commission the power
to arbitrarily initiate or make rates for
! the railways, and that it would be most
9 dangerous to place this vast authority
In the hands Of five men, especially five
men who have had no experience as rail-
q way traffic managers. No such power has
: been asked by or is seriously sought to
!. be conferred upon the commission. Tho
:, the popular demand may eventually take
that form, under the stress Of continued
3 delay in remedying ascertained defects
: in the present plan Of regulation, the
) amendment recommended by the com.
mission. as to authority to prescribe the
reasonable rate upon complaint and after
hearing, would confer in substance the
J, same power that was actually exercised
e by the commission from the date of its
= organization, in 1887, up to May, 1897
a when the United States supreme cour
/ held that such power was not expressed
, in the statute.
u What Law Provides.
The law provides for complaint, full
- hearing, a report and opinion, and al
order. This proceeding Is essentially ju
dicial in character and form, and bear,
no resemblance in any degree to the ar
bitrary action which would result unde
authority ito make tariffs Of rates abso
lutely for the railways, either In the frs
instance Or after some form of hearin,
or investigation. The situation is re
garded as increasingly grave, in view
of the rapid disappearance Of railwa,
competition and the maintenance of rate
established by combination, attended a.
they are by substantial advances in tn
charges on many articles Of househol,
necessity. Tho the law. is extremely de
fective, aggrieved shippers have no othe
recourse than to appeal to the commits