The Saint Paul globe., 1905-04-17
RATE HEARINGS TO
COMMENCE TODAY
Senate Interstate Commerce
Commission to Take Up
Task

Special to The Globe
WASHINGTON, April 16.-The SEN
ate committee on interstate commerce
which has been charged with the task
of making an exhaustive inquiry into
the subject of government regulation
of railway rates will begin its sessions
in this city tomorrow. The hearings
are to be before the full committee,
and in view of the many important
questions involved some of which
were barely touched upon in the dis
cussion of the subject at the last ses-
sion of congress, are likely to extend
at least until the end of May and be
renewed in September. The commit
tee has announced it's determination
to go fully into the subject and to pre-
pare, if possible, a bill that will pre-
vent the evils of rebates and unjust
determinations, while not interfering
with the free development of the coun-
try great transportation industry.
In the superficial discussions, of the
various projects to give to the inter-
state commerce commission, or some
similar governmental body the power
10 flx railway rates, the assumption
mas Deen that this power would be
exercised only in reducing rates. One
of the many bills relating to this sub
Ject introduced at the last session of
congress specifically provided that the
commission should have power to fix
rates, but should not increase an eX-
listing rate in any case. This, however
was considered an unnecessary uuali-
ncatlon. The members of the govern
mental tribunal undoubtedly would be
capable politicians, whatever their
shortcomings as railway admins
traitors.
They would be alive to the political
erect of raising rates and would not
deliberately take such a step, even if
industrial conditions might warrant it.
On the general supposition that the
government commission would lower
existing freight rates, so far as they
lntertered with them at all, and that
lower rates would be a desirable thing,
the central west has been generally fa-
Vorable to the proposed legislation.
Plan Has Difficulties
Or late, however, certain facts have
peen brought out which would indi-
cate that the operation of government
rate making would not be so simple or
so desirable as this. 1t is noteworthy
TOO, that these facts have been dis
covered and interpreted for the most
part not by the paid advocates of the
railroads, who have been attacking the
proposal on other grounds but by
those who are interested in the subject
as Shippers or as investors In railway
securities through savings banks. in
surance companies and similar organ
izations.
One of these important facts. over
looked in the earlier discussions of the
subject is the clause of the. constitu-
uon which provides that mo prefer
ence shall be given, by any regulation
OF commerce or revenue, to the ports
OF one state over those of another"
inns clause would, of course, be bind
ing on any governmental body clothed
with the power to fix rates. It's prac-
tlcal application would mean the abo-
Hlioh or dlnerentials in rates as they
exist today and the fixing of eouaI
rates to equidistant parts from any
particular shipping point.
On the surface there does not seem
10 be any unfairneSS in this; certainly
nothing to alarm the wheat or corn
grower of Illinois or Nebraska, or any
other of the great central agricultural
states. The railroads may complain.
Tor they may have perfectly sound
business reasons - such as easier
grades or large volume of return
1felghts-for carrying grain a thou
sand miles in one direction more
cheaply than in another The farmer.
however, who is a thousand miles from
New Orleans does not care whether
the shipment of his grain helps to
build up the business of the one port
or the other, so long as the rates are
low.
Definition of Port
The difficulty in the constitutional
restriction comes in when 1t is carried
TO It's logical conclusion and when the
legal meaning of the word port" is
examined. Most persons think of a
port as situated on naVigable water
That, of course, is it's historical mean
ing. The growth of modern commerce
under the influence of railway develop
ment. however, has given it a much
broader meaning. The revised statutes
or the United States interpret the
word as meaning any place where GUS
toms officers are located, or ito which
merchandise can be imported and from
which it can be exported" The treas
ury department publishes an official
list of ports, including about $50 cities
located throughout the union, one or
more in every state except Nevada. AS
every railway line Of consequence
touches several of these ports. the
clause of the constitution referred 70
seems to make it necessary for the
commission in charge of the official
rate making to establish practically all
rates on mileage basis-so much a
mile for every ton of freight hauled in
any part of the country.
Competition Between Localities
Leaving out the constitutional cues
ton, which is one that the LAWYERS
would have to fight out if a rate fixing