Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-01-16
THE MAKING OF RATES
MIR. Hearst Speaks in Favor
of His Bill.
TO 0BVIATE DELAY
PROPOSED ESTABLISHMENT OF AN
INTERSTATE COMMERCE COURT
Hearings Before the House and Senate
Committees Considering
the Subject.
TO 0BVIATE DELAY

Government rate making for the railroads
was further considered today by the House
committee on interstate and foreign COM
merce. Representative Hearst of New
YORK was heard He introduced a bill
which, he said, was to correct some of the
delays and difficulties he had experienced
as business man with proceedings before
the interstate commerce commission Nota-
bly,, he said, his complaint against the
anthracite coal-carryng roads was insti-
tuted in 1902 and is still pending before
that body.
1t was brought out through questions
by Chairman Hepburn that the delay was
largely due to appeals to the courts. Mr..
Hearst reviewed the details of his case
before the commission.
Asked what was the value of coal in the
mines, the cost of mining and of trans
portation. Mr.. Hearst said the opera tors
claimed they made a profit of only seven
cents ton, however, the actual cost of
transporting coal from the anthracite fields
to New York was not greater than so cents
ton, while the rate was S1.55 ton. The
deduction was that the Independent oper-
ator was placed at decided disadvantage
as he had to pay all of his profits to the
railroads which, Mr. Hearst said, were
owned by the coal combine.
10 EXpeQ1te controversies.
Reverting to his bill, Mr.. Hearst said it's
main features were to clothe the commits
sion with authority to fix rates, and for the
establishment of an interstate commerce
court to which appeals shall be made. This
feature, he said, was for the soc purpose
of eXpediting controversies before the COM
mission.
A long discussion ensued as to the con-
stitutional authority of Congress to dele
gate it's authority to the interstate COM
merce commission to fix rates Mr.. Hearst
cited decisions of the Supreme Court to
sustain his contention that Congress pos
sessed this authority. However, he did not
hold that this authority could be delegated
to a court. and the only function of the
court created by his bill was to review the
rate fixed, and, if the court could not ap-
prove the rate, it should remand the ques-
tion back to the commission with its rea-
sons.
Mr.. Adamson's Objection.
Representative Adamson fGa.) interjected
that to his mind these were all minor ques-
tions as compared to the proposition that
Congress should take charge of other peo-
pies money and property and run the same.
He had no idea that any bill on the subject
now before Congress would become a law.
The remaining time of the hearing was
devoted to a discussion of the technical
questions involved in the construction of
the proposed interstate commerce court, the
discussion terminating at noon by the sug-
gestion of Chairman Hepburn that the COM
mittee might better study law in execu-
tive session. Mr.. Hearst will resume his
testimony tomorrow.
MI. Bacon Before Senate Committee.
The Senate committee on interstate COM
merce gave a hearing today on the Cooper
Quarles bill comforting greater power on
the interstate commerce commission. E. P.
ti,,rr tlA into c,pt.,
merce law convention, who has been heard
at some length by the House committee,
was examined.
Replying to Senator Elkins, he said that
the question of rebates was fully covered
by the Elkins act and that it remains for
the interstate commerce commission to en-
force the provisions of that act. 1t is eS-
sential, he said, that the books of the
railroad companies be open not only to in
spection, but that inspectors be appointed
to examine the books of railway corpora
tions in order to discover when rebates are
paid, that suits might be brought by the
Attorney General. He would not at this
time suggest an amendment TO the cooper
Quarles bill covering that point, but he
thought that machinery should be pro-
vided in the future to meet this con-
dition.
Chairman Elkins said it was important
that somebody send for the books, one
of the things desired Is to do away with re-
bates What the country wants said Sem
aIOr tiklIS, Is lfldl anu re-
bates be stopped.
Six Forms of Discrimination.
Mr. Bacon said there are six forms of dis
crimina ton, which he enumerated as re-
bates determinations between localities,
between communities, between commodities,
as to distances and between quantities. He
said there has been discrimination be-
tween domestic and export traffic. The
trunk lines, he asserted, have given steel
and iron products 3S1s per cent reduction on
foreign shipments, and remarked that it
was a question if the higher rate paid by
domestic shippers does not reimburse the
railroads for the lower rates on exports.
Senator Cullom asked if it was Mr.. Ba-
cons idea that there should be no more
hearings this measure The latter
piled that 1t was, and said it was desired
that the provisions of this bill be enacted
and he would be on hand at the next Con-
gress favoring additional legislation. He
expressed the opinion that the present bill
would receive two-thirds of the votes of
the two houses. He understood, he said
that Chairman Hepburn of the House COM
mittee on interstate and foreign commerce.
was preparing bill which covered this bill
and made some additions, which he thought
the House committee might report as a
substitute for the bill under consideration
Replying to Senator Elkins Mr. Bacon
said the railroads have gained millions of
dollars by the law forbidding rebates.
The committee adjourned until next Fri
day.