The Washington times., 1905-10-22

railway managers that the fixing OF
a rate is too delicate an operation to
intrust to a commission, depending
for its correct solution upon so many
considerations known only to the
traffic managers, he alleged that the
argument proved too much. He
showed that the judgment required
to fix a rate had long been exercised
by juries in ascertainment of the
measure of damages by reason of
excessive rates, the measure being
the difference between the rate
actually charged and that which
ought to have been charged, or the
maximum reasonable rate He might
have added that whenever the rail-
roads think their interests are in
jeopardy the commission will always
have the aid of the traffic managers
in fixing the rate.
To the objection. which he charac-
terized as the main argument Of the
railways, that the power to initiate
and fix rates takes away the COM
panies' management of their own
lines, and is therefore the equivalent
of Government ownership, he said:
The Presidents plan does not involve
the wholesale fixing or initiating of rates
by the Interstate Commerce Commis-
sion and the assumption that 1t does
by those who oppose his proposition JUS
titles the inference that they are setting
up straw men to be knocked down in
discussion.
But ii is said that the fixing of a single
rate involves a change. of so many other
rates in order to conform to the rate
fixed that it does in effect involve a
making over of the whole system of
one rate Will affect a great many others.
If 1t does. then. under the proposed
amendments:l lyjust as now. 1t is for the
carrier to adjust the other rates to suit
the rate fixed by the commission. The
commission is not called upon to fix the
other rates, but the traffic managers
will still be at liberty to make changes
In other rates to square with the change
caused by -he action of the commission.
According to Judge Taft all the
Government wishes the power to do
is to bring before a tribunal those
rates which are the subject of dis
pute and leave all other rate-making
to the discretion of the railroad COM
panies. To his mind there is a vast
difference between initiating all the
rates on all the railways in the coun-
try and requiring the roads to SUBJ
nit to revision the small proportion
of those rates which are made the
object of complaint. II the Govern
ment has the right to require the use
Of air-brakes and automatic couplers
by the roads it has the right to super
wise their traffic rates.
Taking up the question OF the
advisabillty of having a court fix the
rates or committing that duty to a
commission, Mr.. Taft, while admit
ting that serious issues of law must
always be referred to the courts,
pointed out the benefits of a COM
mission in the dispatch of business.
Having shown that few cases are
now carried beyond the commission
and that in the future, as in the past,
1t would be primarily court of COM
promise and summary disposition,
the Secretary declared that under our
system of government the power to
fix rate could not be conferred upon
court and could only be given to a
legislative commission, and added:
When. however. the commission has
fixed the rate and issued its order. It
then becomes competent for a court to
pass upon the question whether such a
rate offers TO the railway company a
and that Is the form which an appeal
10 the court from the order of the
tribunal would probably take. If the
rate fixed is found not to be reasonable
from the standpoint of the railway COM
pany then the court can protect the rail-
way company BIZ enjoining the enforce
rnent of the order.
Another objection made to the second
feature OF the proposed amendment by
which the order Of the commission shall
be in force until set aside by judicial
order or decree. Is that the railroad
company may be made by an order
of an irresponsible body Ike the
commission. 10 lose large sums without
any hope of recovering them by fur
hlSnlng transportation at rates which
afterward under judicial investigat tIon
are shown TO be unreaSonably low
We may be confident that a tri-
bunal with respected powers will respect
its responsibilities. More than this. the
apprehended danger Is ca silly guarded
against by a provision that the order of
the commission shall not go into effect
until thirty or sixtv days after II IS
made and that there shall be the inn
mediate privilege to appeal TO a court
for investigation as TO the validity and
propriety of the order so far at least
as its injury to the railroad company is
concerned and in such a proceeding a
court OF equity has ample opportunity
10 enforce any kind of security that may
be necessary TO protect the company
against any probable harm which II
might suffer.
Mr.. Taft merely touched upon the
elaborate arguments and ponderous
statistics of the railways and their
bureaus Of publicity, all directed to
the general proposition that the rates
in this country are lower than those
in England and Europe He answers
.lI tbic Inv ba cOrant "a