The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-12-08
THE ANNUAL MESSAGE TO CONGRESS
OF PRESIDENT ROOSEVELT

~ EdlE1dA Ut NASTY dftIDI. ne HIST
thing To do is TO cal with tia great
corporations engaged in the business
of interstate transportation. As I
said In my Message of December 6
last. the immediate and most Dressing
need SO far as legislation is concerned,
is the enactment into law OF some
hem to cur to the agents Of the
Government uch supervision and reg
ulation of the rates charged by the
railroads of the country engage in in
terstate traffic as shall summary and
effectively prevent the imposition of
unjust or unreasonable rates. It must
include putting a complete stop 10 re-
bates in every shape and form. This
power to regulate rates. like all similar
powers over the business world. should
be exercised with moderation. "auticn.
and self-restraint: but it should exist.
so that it "a be effectively ex c;sed
when the need arises.
The first consideration to be kept in
mind is that the power should be af-
firmatiye and should be given to some
administrative body created by the
Congress. If given to the present In
terstate Commerce Commission or to a
reorganized Interstate Commerce Com
mission. such commission should be
made uneauivocalIv administrative. I
do not believe in the Government in
terfering with private business more
than is necessary. I do not believe in
the Government undertaking any work
which can with Dropriety be left in
private hands. But neither do I believe
in the Government f1inching from over
ee!ng any work when it becomes evil
dent that abuses are sure to obtain
therein unless there is governmental
supervision. It is not my province to
indicate the exact terms Of the law
which should be enacted: but I call
the attention of the Congress to GER
tain existing conditions with which it
is desirable to deal. In my Judgment
the most important provision which
SUCH law should contain is that con-
ferrlng upon some competent admin
1strative body the power to decide.
upon the case being brought before it,
whether a given rate prescribed by a
railroad is reasonable and lust. and if
It is found to be unreasonable and I'M
lust. then. after full Investigation of
the complaint. to prescribe the limit
Of rate beyond which it shall not be
lawful to gO-the maximum reasonable
rate. as it is commonly called-this
decision to go into effect within a rea-
sonable time and to obtain from thence
onward. subject to review bv the
courts. It sometimes happens at pres
ent. not that a rate is too high but
that a favored shipper is given too
low q rate. In such case the Commits
sion would nave the right to fix this
already established minimum rate as
the maximum: and it would need only
one or two such decisions by the Com
mission to cur railroad companies of
the practice of giving improper mimi
mum rates. I call your attention to
the fact that nv proposal is not 10 give
the Commission W to initiate or
originate rates generally, but to regu-
late a rate already fixed or originated
by the roads. uDon complaint and af-
ter investigation. A heavy penalty
should be exacted from any rpora
ton which fails to respect an order of
the Commission [ regard this power
to establish a maximum rate as being
essential to any scheme of real reform
in the matter Of railway regulation.
The first necessity is to secure it: and
unless it is granted to the Commission
there is little use in touching the sub
ject at all.
Illegal transactions often occur I'M
der the forms of law. 1t has often Oc-
Cured that a shipper has been told by
a traffic officer to buy q large ouanti-
ty of some commodity and then after
1t has been bought an open reduction
IS made in the rate to take effect m
mediatelv. the arrangement resulting
to the profit of the one shipper and the
one railroad and to the damage Of all
their competitors: for it must not be
forgotten that the big shippers are at
least as much to blame as any railroad
in the matter of rebates. The law
should make it clear SO that nobody
can fail to understand that any kind of
commission paid on freight shipments.
whether in this form or in the form of
fictitious damages. or of a concession.
a free pass, reduced Dassenger rate. or
payment OF brokerage, is Illegal. It
is worth while considering whether it
would not be wise to confer on the
Government h right of civil action
against the beneficiary of a rebate for
at least twice the value of the rebate;
this Woul help stop what is really
blackmail. Elevator allowances should
be stopped. for they have now grown
to such an extent that thev are demon
alizing and are used as rebates.
The best possible regulation of rates
would. Of course, be that regulation
secured by an honest agreement among
the railroads themselves to carry out
the law. Such a general agreement
would, for instance. at once put a stop
to the efforts Of any one big shipper
or big railroad to discriminate against
or ecu advantages oyer some rival:
and such agreement would make the
railroads themselves agents for enforc-
the law. Inc power vested in the
Government to put a stop to agree
rnents to the detriment of the public
should, in my judgment. be accompa-
by W to permit, under speci-
fed conditions and careful supervis-
ion. agreements clearly in the interest
of the public. But. in nv Judgment.
the necessity for giving this further
power is by no means as great as the
necessity for giving the Commission or
administrative bod the other powers
/ have enumerated above: and it may
be inadvisable to attempt to vest this
particular power in the Commission
other administrative body until it
possesses n is exercising
what I regard as by far the most i'm
OF all the powers I recommend
indeed the vitality important pow
er-that to fix q given maximum rate.
rate. after the lapse Of a reason
able time. goes into full effect. subject
to review by the courts.
Private Car Lines.
All private-car lines. industrial
roads rofriOorafo~ CHARGES ard tho