The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-04

MINNEAPOLIS JOUKN1
greatly reduced rates, and thus DO able
fo undersell him. No contractor dares
venture to make a contract involving
large shipments until he has contracted
with the railway companies as to his
rates, and every department Of trade,
to greater or less extent, faces the
same perils.
A Reasonable Basis.
Mr.. Stickney next discussed the prin.
ciple upon which q reasonable rate
should be made, showing that railroads
are authorized to collect tolls and not
to, exact payment on the principle Of
equivalent for service performed.
''The commodities which are trans
ported,'' said Mr.. Stickney, naturally
divide into three classes, with refer
ence to the rate which can be col
curtailing the volume Of movement.
These are:
First-There is . large tonnage Of the
essentials of life, like coal and grain,
which can be moved long distances at low
rates, which will pay the company the
additional cost and a small amount to-
wards, the fixed cost but, which, If
charged a full proportion of the fixed cost,
would not move. But some of these COM
modities will move at higher rates than
others. All OF these commodities must
evidently be carried at less than a guam
tum meruit.
Second-There Is large tonnage which
can be moved at a rate which will pay
both the additional cost and a full propor-
ton Of the fixed cost.
Third-There Is much smaller tonnage
of luxuries, which move In small lots and
which win move at a rate which will pay
the additional cost and some more than a
fair proportion Of the fixed cost.
"By carrying all three classes at the
varying rates named in the schedule Of
rates, the companies collect an aver
age rate, and an aggregate revenue,
which is equal to q quantum meruit for
the aggregate services performed.
"And, to cut long story short, It is
demonstratable that q schedule Of rail
each rate should be full quantum
| lneruit for the specific service would
prevent the transportation of all the
grain, cotton, lumber, coal and all the
great staples of production for long
distances. It would destroy cities and
| cripple all kinds Of productive indus
| tries, and reduce the tonnage trans
ported to such an extent as to ruin the
railway companies.
Methods of Rate Making.
Mr.. Stickney argued for the reason
ableness of schedule on the basis of
the recognized rules of indirect taxa
! ton by citing the analogies between
J the methods Of making a schedule of
import duties and a schedule Of rail
way rates-.asslgnlng no larger rate to
commodity than it will bear.
| AS a matter of fact,' said Mr..
Sfioknov ttfhio 10 tho oobo1,,1oo of
railway rates have always been made,
and this, in effect, is the way the gov.
eminent schedule maker will have to
make them. And if commission of
congress ever undertakes to make a
schedule Of Interstate rates, it will find
that it will not be possible to substan
italy change the existing schedules
economic system of the country :
Referring to the inadequacy of the
machinery which the interstate com
merce law provides for enforcing its
provision against determinations, Mr.
I Stickney said: .-,. IS
Fifteen years experience makes it evi
dent that neither the companies or the in
dividuals will set the machinery of tn
! courts in motion to enforce this law, an
thru fear of the extraordinary penalties 0
the law not enforce it, Hence, Il tn
lby the government. -. >:
- Footing for Commission.
i Mr.. stickney advocated putting tn
interstate commerce commission on
footing Of equality with the inlan
) revenue Sdepar tnent of the government
n employing expert tN accountants, wit
powers and duties similar to nationa
bank examiners, who should from tim
IN ~ ~ n
might be necessary, check each ite1
{ collected and each item Of expenditur
by each railway; and inspectors, VIII
should supervise the weights and class
4 fcation, and detectives and attorney
o to detect and punish. ..a.
HThe public examiner, an executiv
u officer of Minnesota said Mr.. Sticl
@ ney, els authorized thus to check raj
. way accounts, and at his first checl
d rebates which had been paid out, an
e obtained payment of the gross ear
ings taxes to the state
It But Mr.. Stickney objected to the i
II terstate- commerce commission beir
. given power to enforce as well as
+ rates, saying: 49,.
/ Just a word about the Interstate cor
% MERGE commission. 1t would seem that
3 congress gives it the authority to MAJ
If it confers the power to fix, after a hea
! ing, rate which has been complained
le it's time will be fully occupied, and tn
d it ought to be relieved Of all other dutie
a Besides, the making Of rates Is the e
10 actment of laws, it is a legislative fun
20 tion-the enforcement Of laws Is an exec
tive function It is Inconsistent wi
- American Ideas that legislative and exec
AZ tive functions should be vested in o
q comm I asior,t -" = e.
~ Cutlery Against Passes.
ST In Mr.. stickney's Judgment the pu
" lie outcry against railways Is direct
g. more against passes than against U
81. just rates. On this point he said:
r. If we inquire into the heart-burn1r
Ill growing out Of railway, discriminate
a which are breeding class distinctions a
If class hatred, and even anarchism, amo
l. the so-called lower classes, we will fl
he that the bitterest feelings are aroused
being compelled to pay faro while ricl
men ride free.
h. II we go among the laborins class
"a either as individuals or in their pub
- meetings, we will hear bitter denunc
=. tons, not Of unreasonable or discrimin
IT. ing freight rates, but Of free passes.
w. In times Of railway strikes we can h
hs the park orator proclaim why sho
to we work for scant wages In order tt