New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-10
PRESIDENT URGES ACTION.
D1LWAY RATE CONTROL.
T5e Problem Too Great To Be
co77ed at This Session Of Congress.
From THE TRIBUNE RUREAU-l

washington, Dec 9.-Iheie - no -,
.-,i,n by Congress in accordance N-'il -
.-.st5srt= recommendation to con1er Oh 't'e
.s,a Commerce Commission the power 10
lf'e's'a - rs,as in srecihc instances at this
- This is not due. however, to the oppo-
- the railroads or Of their frienos III
So. s..ss hut 10 the magnitude Of the SUBJECT
,,a complications il presents
IDEA is not new one, having been some
exoIicirlv set forth IN President
--s7--s first message TO Congress OF De-
1901 The principle involved was
IL considered by Congress when It passeu
7r.are+sre Commerce act Of 1Sot- poI H0''
+,a Presidents recommendation 10 IHe oO4
7aa1 has already been carried into e.
&c, by the Anti Rebate act Of last seSs-O--
~, much remains to be done is admitted "
majority Of the more thoughttu! nleln0eiS
rorq-ess hut the subject presents many PROV
- -birt must be carefully considered ana ei-
se--,.s7r,- solved before a law that VIII not WON
as- t,+,,erica and that viii be declared oO
t.,.fo,a1 nv the Supreme Court can be IFaiiieo-
pRrsTDFNT MAKES HIS VIEWS F-11A1-''
r,-sst7er, has to-day made It plain TO the
,,--.--asg,,,e-7 who called on him that he looks
-4,,5 consideration Of the subject ana the
a.--,.r+ of 2 law al the earliest practicable
cement. and It IS q safe prediction to say t2a1
-ba hast thought Of both houses Of Congress VIII
>. devoted 10 i and that action will be taken
nth All the expedition consistent with souho
legislation II his stand for fair treatment OF
-. small shippers the President is deeply in
earnest. and he can count on the assistance OF
,o-ns NJ. the ablest men in the Congress.
IN his message TO Congress in 1901 tho Pres
t5.rt discussed this subject as follows;
In 1887 g measure was enacted for the regula-
ton Of Interstate railways, common known as
the Interstate Commerce act. The caTdina!
Trovisions Of that act were that railway rates
ehsuld be just and reasonable and that an
shippers. localities and commodities shou4d Dc
accorded equal treatment commission was
created and endowed with what we're supposed
10 be the necessary powers 10 execute Inc pIo-
visions Of this act.
that law was largely an experiment. Expert
ence has shown the wisdom Of It's purposes, puL
has also shown. possibly, that some OF us re-
aJjrer1ents were wrong: certainly that the
means devised for the enforcement Of its pro-
,5siors are detective Those who complain of
ths mana cement Of the railways alege that
-he established rates are not maintained that
rebates and similar devices are habitUaly re-
sorted 10; that these preferences are usually
n favor OF the large shippers; that they drive
nut OF business the small competitor, that while
many rates are 100 low. many others are eXces-
Eive and that gross preferences are made, af-
fAc;ing both localities and commodities. Upon
me other hand. the railways assert that the law
by It's very terms tends 10 produce many Of the
illegal practices by depriving carriers of that
right of concerted action which they claim is
necessary 70 establish and maintain nOn-dis-
eliminating rates.
The act should be amended. The railway is
public servant. Its rates should be just to and
oCsn 70 al shippers alike. The government
should see 70 fl that within its jurisdiction this
Is SO and should provide speedy, inexpensive
and effective remedy TO that end. At the same
time. Il must not Ne forgotten that our railways
are the arteries through which the commercial
lfeblood Of this nation flows. Nothing could
be more foolish than the enactment Of legisla-
ton which would unnecessarily interfere with
the development and operation of these COM
w1ercsl The SlniHCr Is of great
Importance, and calls for the earnest attention
of the Congress
IN bis message to Congress in the session Just
convened the President says,
IN MY JUDGMENT THE MOST IMPORTANT
LEGISLATIVE ACT NOW NEEDED AS REGARDS
The REGULaTOS OF CORPORATIONS Is THIS
ACT TO CONFER on THE INTERSTATE COM
MERGE COMMISSION THE POWER TO REVISE
RATES AND REGULATIONS. THE REVISED RATE
10 60 AT ONCE INTO EFFECT AND TO STAY IN
Effect UNLESS AND UNTIL THE COURT OF RE
VIEW REyERsEs IT
OBSTACLES IN THE WAY
Simple as this proposition may seem. certain
difficulties exist with regard 10 putting it into
effect, Contrary To a frequent assertion, IT was
not the purpose Of Congress when it enacted the
Interstate Commerce act Of 1887 to confer on the
Interstate Commerce Commission authority TO
fix rates, rs real purpose being TO put into the
form Of q statute the common law principle that
the government has the power 70 prescribe the
rates charged by common carriers Moreover.
that law left 70 the courts the determination Of
the rates With regard 10 the present PROPOSE
ton it is objected that in all courts Of Justice
where an appeal Is taken 4 supersedeas bond ia
required, which insures the beneficiary of the
initial suit against al possible loss as result
Of the delay involved. For instance. in q case
where Judgment IS obtained in the initial suit
be ~-lra +o hi
after the execution OF good and suff1cien. bond
which shall protect the holder Of the judgmen;
against possible loss as a result Of the postpone
nent Of its execution.
With this necessary procedure in mind the
question IS asked. In the event Of the Inter
state Commerce Commission reducing a specific
rate such rate going at once into effect. and the
commissions decision being eventually reversed
by he court n review. and the former and high
r. rate found equitable. from whom would tbs
railroad recover the loss entailed by the more o1
Jess protracted enforcement Of the lower and IN
equitable rate" And IN elaboration Of thi,
question il is asked. Gould q bond be exactet
IRON every shipper under the lower rate which
would enable the railroad TO recover the higher
rate in the event Of the commissions decision
being reversed2 II not would not the railroad
have ground for an action 10 recover from the
government"
iHl5 Is only one phase Of the complications
which confront thoughtful legislators who sin
osreiy desire 10 act on the Presidents recon.
"sh4etion and devise snd make statutory
-FaeaT for existing evils These inquiries may
9fr'+ 70 demonstrate. ~ least partially. the
magnitude Of the subject
tpNFIDENT OF SATISFACTORY RESULT
Intelligent prediction as 20 the outcome is i'm.
4css.aie AT the present tlrne beyond the genera