The Saint Paul globe., 1905-04-29
RAILROAD NEWS
EXPLAINS PROBLEM
OF FREIGHT RATES
George r. Peck Testifies Before
Interstate Commerce Com
mittee of Senate

WASHINGTON, April 2S-James c.
Lincoln, general freight agent of the
Missouri Pacific, continued his state
ment before the serate committee on
interstate commerce today, He said
there was more satisfactory condi-
tion under the Kansas than under the
Arkansas railroad commission The
maximum rates fixed by the state COM
mission in Missouri were fair and rea-
sonaole At times. he said. the Mis-
souri, Pacific charged a less rate than
fixed by the commission.
Chairman Elkins asked Questions
relative to the advances made on live
I STOCK rates, which, he said. were the
cause OF the greatest complaint. Mr..
Lincoln replied that the rates. owing
70 competition. We're very low before
me advances were made. He thought
the rates too low now.
Replying 10 questions about private
car lines. Mr.. Lincoln explained that
the American Refrigerator Transit
company. in which the Missouri Pa
enc was a stockholder. operated on
mat line. This company had more
tnan 1000 cars. The railroad made
private cars.
Private Car Charges
The private car company made the
80 AO4 OWlnS 10
the interest Of the Missouri Pacific in
the American Refrigerator Transit
company IT preferred 10 use the cars
OF the Itater company, although il did
operate other cars and furnished ice
Tor such cars There We're complaints
Of high charges for icing the private
cars of the American Refrigerator
transit company and also other cars
A c. Bird, who is an official of the
missouri Pacific and also an officer of
the refrigerator company, had charge
or the private cars on the railroad.
Then does he make contracts with
himself?" asked Chairman Elkins.
Yes replied Mr.. Lincoln.
Chairman Elkins secured the address
OF Mr. Bird, and ii was announced that
he would appear before the committee.
George r. Peck, general counsel of
the Chicago, Milwaukee & St. Paul
railway, said in part:
II Is certainly not practicable il II were
wise. 10 endeavor by legislation to elirni-
OF commerce. trade and traffic and to sub
stitute in their place the rigid control and
regulation OF paternal government. That
is ne Chinese method and trust never
Will be the American method Men will
always strive for their own advantage
and out OF this strife all commercial prog
reSs has come.
Resents Interference
That commerce carried on without any
governmental regulation or control would
best serve the country ! do not believe
And yet IL does not follow that il should
be subject TO the minute interference of a
body OF men who in the nature of things
cannot furnish its needs and require
ments and the needs and requirements OF
the public.
Mr.. Peck insisted that rebates had ceas-
60 or could be corrected under the present
laws. and continuing. said the proposed
leglslation, II rebates still existed at ALL
would not be effective at all He said:
A railway company can cut a rate made
by commission as easy as IL can cut a
rate made by itself. Making rate is one
thlng, cutting rate is another. and they
have no possible relation to each other
If rates had been made by government
commission for the last twenty years it
Is perfectly plain that the rebate system
would have grown and fiourished as il did
under system which allowed railways
10 make their own rates.
Speaking for my own company and in
sense for many other companies, have
only to say that they will welcome any
legislation, criminal or remedial which In
any degree can make the payment of re-
bates more difficult and increase the GER
talnty OF detection and of punishment.
But if il is supposed that the payment
of rebates can be suppressed by giving
TO the committee the power to fix rates,
! suggest that such result is absolutely
impossible
Power of Life and Death
The rate making power upon any rail-
way is the power of commercial life and
death. II is. under the constitution, clear
ly property right-subject, of course. TO
the regulating power of the state which
created u-and as 10 interstate business
of the United States. All property rights
In this country are protected by the fed
eral constitution and the term liberty
means not simply the physical privilege OF
being out OF jail. but the right freely TO
carry on ones business. using and enjoy
ing one faculties and liberties according
10 the law of the land.
Placing all of these in the hands Of a
commission is certainly wrong and prob
ably unconstitutional
There has been considerable discussion
as TO the relations of the Esch- Townsend
bill TO the preference clause of the con-
stitution. The bill undoubtedly proposes
a comprehensive system OF rate making
by the commission. II II becomes a law
the most powerful body of men in the
world will be the interstate commerce
commission of the United States.
There are nearly 215.000 miles of rail-
road in the United States, and the prin-
cipal business Of most OF them is inter
state. The mileage which the Esch-
Townsend bill proposes 10 put under the
care Of the interstate commerce commits