The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-30
LITTLE HOPE FOR
RATE REGULATION
tSeAate Inquiry Committee Is Elk.
pected to Report Inability
to Agree.
Remedy for Private Car, Switch
\ lug and Elevator Abuses Will
Probably Be Found.
By w. w. Jermane.


Interstate and foreign commerce, which,
on April Is, is to begin it's investiga-
ton of the railway rate and similar
questions, will report to congress in the
fall that it has been unable to agree.
Whether the ma ority or the minority
report will uphold the position Of the
administration is not yet clear, but Op-
posing reports are expected.
3 IL is limited that a compromise bill
may be agreed to by the leaders in both
houses, one which will go tr;fle farther
thaa the railways will deem safe, and
not so far as the public is demanding,
and that this bill will be pushed thru
both houses. But all that is now in
sight is the failure of the senate COM
mittee to get together. @
Senator Elkins, chairman Of the COM
mittee, and a friend of the great trans
1oiued by Senator Kean of New Jersey,
also corporation man and millionaire,
and a democrat or two, in favoring a
bill that will approach as near as posi-
bic to giving the railways what they
want without mortally offending the
public.
= Senators Dolliver, Clapp and Car
mack will be- depended upon to favor a
bill which will concede as much as may
be safe to public sentiment without de-
stroying property.
Request by President.
= In his message to congress, the
president has asked that the Interstate
commerce commission be clothed with
the power to fix railway rates, and
The Esch-Townsend bill is reflection Of
that message. The issue thus presented
Taises one of the greatest economic ques-
tions ever brought before congress or
any other legislative body. That there
are two sides to the question is also be-
coming apparent For instance, there
is little or no testimony now before con-
gress tending to show that railway rates
are exorbitant, or that they have been
unduly raised in late years. There
have been rate advances, but they have
not been radical. Classifcations have
been changed in numerous cases, and
low-class articles have been placed in
higher classes.
Il But after all, the abuses against
which the people are clamoring are not
Guiding the indirect payment of rebates
by elevator charges, switching charges,
and the private cars, has most disturbed
the shipping world. 1t is against this
form of, abuse that congress is most
likely to proceed, rather than to the en-
actment Of the Esch-Townsend bill, or
any other bill comforting upon the in
power to fix rates.
s. Congress must do substantial justice
to all parties concerned, and injustice
to none. It would be too much to ex-
Pect that the little group Of senators
who will take testimony this spring, and
later submit report to congress, will be
able to agree. on the remedy congress
gress itself viii be excused if it is not
Unanimous in it's iudpment
Chief Danger in Situation.
q The chief danger lies in the posi-
bility that two different rate PROPOSE
. fions will come from the committee to
be played against each other in the two
houses, and that between the two moth
ing can be accomplished.
Y If one were to hazard guess as to
what would be done, it would be this:
That congress will deal vigorously with
the private car, the switching and the
eerminal abuses, by which rebates are
granted by indirection, and will leave
the rate question where it is. The in
!, terstate commerce commission will be
clothed with ample power to deal with
the abuses referred to, but will not be
permitted to adjust rates. If the rate
question ever is taken up with a serl-
GUS view to legislation, it will be at
some indefinite date in the future.
4 Meanwhile, the impression is growing
shat the Esch-Townsend bill is such
q revolutionary measure as to Justify
congress in postponing action, and this
impression will be strengthened, if, as
expected, the hearings develop the fact
that present rates are satisfactory in
5the main, and that in the mind of the
Z general public rate regulation means
Sate reduction.
So far as rate regulation is concerned,
the committee hearings are to be large
,1y devoted to the question Of whether
The Esch-Townsend bill runs counter to
that provision Of the constitution,
which says that emo preference shall
be given by any regulation Of COM
smerce or revenue to the ports OF one
Sportant is this question, that already
Chairman Knapp of the interstate com
merce commission has been asked to
prepare a brief for the committee de-
Tending his theory that this provision
of the constitution does not apply to
railroad traffic between the cities of the
several states. A brief defending the
other side is to be prepared by com:
nittee of the great railway lawyers OF
the country.
Question Befogged.
The question promises thus to become
so befogged, and the power Of congress
shown to be so uncertain, as TO give the
honest legislator much cause for uneas-
mess. It is the natural inference that
no legislation will be enacted. But
the discussion of the question will be
helpful in many ways, from the points
Of view Of railways and the public. It
is thus quite possible that the discus
sion, even if barren Of immediate legis-
lative results, will permanently and
satisfactorily settle the question wheth-
er it is advisable for congress to fix
rates, or to deal with the rate question
las outlined in the Esch-Townsend bill
But there will be regulation Of the
private cars, and the elevator and
switching evils will be corrected. The
details Of the legislation will be worked
out in leisurely manner before fall.
The difficulties in the way Of increas-
ing the power Of the interstate com.
merce commission have not been les
sened by, the appointment Of former
Senator Cockrell to the commission.
While he is honest and straightfor.
ward, and a fine type of the old school
Statesman, his long experience in the re.
dictionary senate, his traditional atti-
8tude on public questions, together with
his advanced age, make him unrespon.
sive to any appeal for a forward move
Ement, and as member Of the commits.
sion he would not stand for advanced
ideas, were the commission clothed with