New-York tribune., 1905-01-16
PROPOSE REBATE COURT
RATE Law INEFFECTIVE.
Outline of Railroad Problems Before
CONGRESS.
[FRoM THE TRIBUNE BUREAU

ord" with ready made solutions. II does mean
that legislative brain which as completely dom
mates the national legislative system as the in
dividual mind controls the human body. The
man who does things in the White House has
appealed to the men who do things in Congress.
and the best minds of these chambers are being
applied TO the complex problem of federal reg
ulation of the great common carrier system of
the nation. Certain abuses exist. Those abuses,
magnifed by the radical element of the press,
leading superficial men to advocate extreme
remedies. Preachers of socialism are improving
their opportunities and spreading the gospel Of
government ownership of the railroads" Some
Of the premises which is based the socialistic
argument are true. 1t is the duty of Congress
to remove the actual abuses and then the
cialistic fabric will fall TO the ground. This is
the argument which has appealed to the
thoughtful men in Congress and caused them
deeply TO study the problem.
THE PRESIDENTS ATTITUDE
The President has suggested remedies in the
form of legislation, but he has always made it
clear that he committed TO set form.
that he seeks only an adequate solution of the
problem, and that ultimately he will approve
only legislation which promises to prove an ef-
fective remedy for existing evils and TO involve
no injustice to any man. In his conversations
with prominent railway the President has
discovered that the more thoughtful among
them appreciate the necessity of legislation in
the direction he has indicated. They understand
full we'll the growth of the socialistic propa-
ganda, and, distasteful as any curtailment of
their power might prove under other circum-
stances. they realize that the only safety Of
their interests in the future lies in the exercise
by the federal government of a proper super
vision OF the natural monOpoes which they have
acquired by franchise. The Congressional stu
dents Of public policies have long realized that
the outcry against trusts based on some
fundamental truth. They have felt certain that
the claim that the tariff fostered trusts was
false, but the real cause of trust evils tenn
porarily hidden in the complex operations of
modern industrialism. Recently the truth has
become clearer. Railroad determinations and
not the tariff have fostered trusts and it is the
eradication Of these determinations that the
President urges on Congress, and to his urging
the mind of Congress responds. The real legis-
lators are studying the problem Until they
have diagnosed the disease they will prescribe
remedy. The exploitation of nostrums will be
left TO others. When the diagnosis is completed
a real remedy will be prescribed and those who
know the doctors believe they will not only ef-
feet cure, but viii accomplish il without seri-
Gus detriment to the patient
Inc real doctors work slowly, but they are
making progress. When Congress convened
they had given comparatively little thought to
the subject, and the Presidents Message reviv-
ing the suggestion that an increase Of power be
given TO the Interstate Commerce Commission
occasioned surprise. Nor has that form of rem
edy grown in favor, it is said, with the
PRESIDENT himself. 1t is i'll fact. confidently pre-
olcIed Unat little increase OF power viii be con-
ferred on that branch Of the executive depart
ment or the government. Strong emphasis was
laid by the President on the necessity of aboI-
ishing rebates, and promptly came the reply
that Congress at its last session placed a law
on on the statute books, which will serve as an
enectiYe remedy for this evil.
REBATES" USED IN BROAD SENSE
But discussion of the subject has revealed the
fact that the President used the term rebates"
IN wider sense than was at first understood;
that he meant to include every form of dis
elimination in railway rates. and that while the
law or last session viii doubtless prevent the
granting Of Individual rebates there still re-
nam practices which are tantamount to the
lerhlclous rebates and which must be eIimi-
mated from railway conduct if the ground is to
be cut from under the socialistic claim that the
government should own the railroads and he
fore square deal can be insured for every man
The real leaders of Congress are not yet pre-
pared TO state the problem in concrete terms.
Dut there are several known forms of discrimi-
nations 10 which they giving serious atten-
uon First, there is the question of locality
discrimination, whereby through rates are made
Whlch sometimes work grave injustices and serve
TO drive from business the smaller competitors
OF the trusts. Those who are considering the
problem are not prepared to say that railway
rates shall be uniform in all sections or that
determinations between localities should not be
made In certain instances. But they do recog-
niZe In this system exercised without govern
mental supervision an opportunity for grave
Second, the custom of certain rail
ways of placing high rate on a commodity
OF Whlch they are, In fact producers with the
purpose Of running their competitors while thew
get back as freight charges the high rates
charged their own producing company is rec
ognlZed as an evil productive Of great hardship
TO the small producer Third the system Of
private cars. whereby the owner of these cars
from he
winch amounts TO rebate the freight he
pays and thus affords him discrinnina fion In
the cost or transportation. is acknowledged to
De productive source Of injustice Fourth
terminal charges. which are manipulated as are
the private car trackage allowances are pro-
ductive OF inequalities, and finally the lin
ability of certain railroads to furnisb car9 ith
winch to transport the goods of the producers
Whlch compete with producing companies con-
troIled by the railway is believed to be a grow
ing method Of discrimination The remedy for
these evils will prove difficult to devise and No
half baked" legislation will be enacted; but that
a remedy there must be is conceded and the |
knowledge that the best minds I'm Congress- are !
engaged in a solution of the problem must nroI,e
d source OF comfort to all who suffer Injustice
RAILWAYS NATURAL MONOPOLIEs.
rom a philosophical standpoint, the greatest
o. % rue toward the solution of the problem lies
"a "a the now almost universal recognition of the
TACT tnat the railways are essentially natural |
monopolles and cannot be dealt with as the |
purely personal property Of their owners 1t is |
appreciated that as the President said in his /
-dessase, Ihe government must in increasing |
degree supervise and regulate the workings OF /
the railways engaged in interstate commerce"
To draft legislation which will meet the ext |
gencies Of the situation and conserve the rights
OF shippers and railway owners alike is a COM |
pNcated task. No measure which commands |
respect solving the problem has vet been !
publicly presented. The fixing Of rates by legis-
latve enactment is regarded as impracticable |
as is also. by many members. the delegation of |
such power to any branch of the executive de- |
? partment @ Of the government The suggestion