River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1905-12-07

of the rates charged by the railroads
of the country engaged in Interstate
traffic as shall summarily and effec-
lively prevent the imposition of unjust
or unreasonable rates. 1t must include
putting complete stop to rebates in
every shape and form. This power to
regulate rates. like all similar powers
over the business world, should be ex-
ercised with moderation, caution and
self-res traint; but it should exist, so
that it can be effectively exercised
when the need arises
The first consideration to be kept
in mind is that the power should be
affirmative md should be given to
some administrative body created by
the congress. If given to the present
interstate commerce commission or to
reorganized interstate commerce
commission, such commission should
be made unequivocaI1y administrative.
I do not believe in the government in
terfering with private business more
than is necessary. I do not believe in
the government undertaking any work
which can with propriety be left IN
private hands. But neither do l be-
lieve in the government f1inching from
overseeing any work when it becomes
evident that abuses are sure to OBJ
tain therein unless there is govern
mental supervision. Tt is not my prov
ince to indicate the exact terms OF the
law which should be enacted; but 1
call the attention of the congress to
certain existing conditions with which
it is desirable to deal. In my judg-
ment the most important provision
which such law should contain is that
comforting upon some competent ad-
ministrative body the power to decide,
upon the case being brought before IL,
whether a given rate prescribed by q
railroad is reasonable AMI just, ana
& n
unjust, then, after full Investigation
of the complaint to prescribe the limit
of rate beyond which it shall not be
lawful to go-the maximum reason
able rate. as it is commonly called
this decision to go into effect within
reasonable time and to obtain from
thence onward, subject to review by
the courts. It sometimes happens at
present, not that a rate is too hfgh
but that favored shipper is given too
low a rate. In such case the commits
sion would have the right to fix this
already established minimum rate as
the maximum; and it would need only
one or two such decisions by the COM
mission to cure railroad companies Of
the practice of giving improper mimi
mum rates. I call your attention to
the fact that my proposal is not to
give the commission power to Initiate
or originate rates generally, but to
mated by the roads, upon complaint
and after investigation. A heavy
penalty should be exacted from any
corporation which fails to respect an
order of the commission. I regard TINS
power to establish q maximum rate
as being essential to any scheme or
real reform in the matter of railway
regulation. The first necessity is TO
secure it; and unless it is granted TO
the commission there is little use IN
touching the subject at all.
Rebates Really Blackmail.
Illegal transactions often occur un-
der the forms of law. 1t has often oc-
Cured that shipper has been told
by traffic officer to buy a large
quantity of some commodity and then
after it has been bought an open re-
duction is made in the rate to take
effect Immediately, the arrangement
resulting to the profit of the one ship
per and the one railroad and to the
damage of all their competitors; Tor
it must not be forgotten that the big
shippers are at least as much TO
blame as any railroad in the matter
of rebates. The law should make 1t
clear so that nobody can fail to under
stand that any kind of commission
paid on freight shipments, whether in
this form or in the form of fictitious
damages or of a concession, free
pass, reduced passenger rate, or pay
ment of brokerage, is illegal. 1t is
worth while considering whether IL
would not be wise to confer on the
government the right of civil action
against the beneficiary of q rebate for
at least twice the value of the rebate;
this would help stop what is really
blackmail. Elevator allowances should
be stopped, for they have now grown
to such an extent that they are de-
moraIizing and are used as rebates.
The best possible regulation of rates
would of course, be that regulation
secured by an honest agreement
among the railroads themselves to
carry out the law. Such general
agreement would, for instance, at once
put stop to the efforts OF any one
big shipper or big railroad to dis
criminate against or secure advan-
tages over some rival; and such agree
ment would make the railroads them
selves agents for enforcing the law.
The power vested in the government
to put a stop to agreements to the
detriment of the public should, in my
judgment, be accompanied by power TO
permit under specified conditions and
careful supervision, agreements clear
Nv in the interest of the public But,
in my Judgment. the necessity Tor
giving this further power is by no
means as great as the necessity for
giving the commission or admlnlstra-
tive body the other powers L nave
enumerated above; and 1T may well
he inadyisable to attempt to vest this
particular power in the commission or
other administrative body until it al
ready possesses and is exercising what
I regard as by far the most important
of all the powers I recommends IN
deed the vitality important power
that to fix a given maximum rate,
which rate. after the lapse of reason
able time. goes into full effect. subject
to review by the courts.
All nriyate car lines, industrial roads,
refrigerator charges, and the like should
be expressly put under the SUPERVISION
Of fine interstate commerce commission
or some similar body so far as rates and
agreements practically affecting rates are
concerned. The private car owners and
tbe owners of industrial railroads are en-
titled to a fair and reasonable compensa-
tion on their investment, but neither pri-
vate cars nor industrial railroads nor spur
tracks should be utilized as devices for
securing preferential rates. A rebate in
icing charges or in mileage, or in a divi-
sion of the rate for refrigerating charges
is lust as pernicious as rebate in any
other way. No lower rate should apply
IN goods imported than actually obtains
on domestic goods from the American
seaboard to destination except in cases
where water competition is the controll-
ing influence. There should be publicity
of the accounts of common carriers; no
common carrier engaged in interstate
business should keep any books or mem
oranOa other than those reported pur-
! suant to law or regulation, and these
books or memoranda should be open to
! he inspection of the government Only
IN this way can violations or evasions of
he law be surely detected. A system of
a@ro min tion of railroad accounts Sholl1d