New-York tribune., 1905-02-20

itseeosevelt recommends But Is the mechanism sat
We NE know-and the testimony cited above proves
state Commerce Commission law to grapple with
@ Ine evils OF rate Discrimination. A B. Stickney,
SSto1lpany told the Industrial Commission Vol
fir; i p; SOD, thar the Interstate Commerce Commits
judgment in the nature OF things it never can be
But perhaps since amended By the Ellins bill the
Interstate Commerce Commission law is now quail
ned TO correct and prevent the evils in the presence
OF which Il was formerly powerless. The Inter
distinct objects These were. frst to secure the
publication Of tariff rates just reasonable and free
riers to observe the tariffs as published without
eSsason OF execution Ihs e act OF lss & waS drected
in failing to apply them when fixed Now. the
the iatter class Of ences 1t IS primarily designed
to prevent and better reach such nfraetons Of the
And the seventeenth report OF the Interstate CON-
had 6eneca2 TeSs @ m Course the short period
during which the law has been in operation has
rafe-cutting always dirninishes. But the law has
operated in the same direction ana tne iteIstats s
before.
Dr. Schurnan points out that the Elkins law
has done nothing TO establish tariff OF railway
rates at once Just reasonable and free from dis
elimination. and gives power to the commits
sion to correct an excessive tariff rate one that
has caused discrimination. While since the pas
sage of the Elkins law rebates and discriminating
rates had been less frequent. the law now al
forded no adequate protection against unfair pref
erences In rates and private freight cars and prl-
side tracks.
PROPOSED PowERs-FACT AND FANCY.
Quoting from the Presidents Message as follows:
''I do believe that fair security to shippers
the commission should be vested with the power
where 4 given rate has been challenged and after
full hearing found TO be unreasonable to decide-
subject to judicial review what shall be reason
able rate take its place. the ruling or the com
mission to take effect Immediately. and to obtain
unless and until It is reversed by the court OF re-
View Dr. Schurmar says:
II the Presidents recommendation were enacted enacted
into law the Interstate Commerce Commission ION
would not have power 10 fix rates generati! nor
definitivey nor to touch any rate whatever Of Its
own motion and on its own initiative II could hoI
ticular rate and it could not set aside that par
tGuiar rate as anf m IS lbsn cbenee
the rate its decision would be binding only pend-
ing an appeal the court Of review. Now. am
surprised that you should regard this policy
itself. apart from the possibility Of e1tension as
radical in its own nature or dangerous IN us enecs
the railroads. At any rate, 1t was TecoInnenoed
Sefofe the INDUSTRIAL Somission BY such railroad
presidents as President Ripley and Vce-President
President Preside t. Caila9ay Of the New.Y ork Central
cago and St Louis, and President Spencer of the
Southern Railway. Gteport, Vol. II. p. uS f.
Digest OF Evidence)
d. Schurrnan says he does not believe that the
Interstate Commerce Commission OF any other gov
ernment agency should have power to fix railroad
rates generally, but he favors giving the commits
sion power to revise on definite complaint specific
rate its decision TO hold good until reversed by the
courts This reform would be specific, practical
and conservative. but would fall far short OF "a
general restriction OF all monopolistic powers Of
railway companies" He adds:
If the policy recommended by President Roosevelt
! We're adopted by Congress and enacted into law |
imagine that it would be only in exceptional cases
Of eSsfins rates - toDsvtuFvv Thinrs would 60 on
]
! of rates The great advantage Of the measure
unjust Determinations the existence of which .in
/ occasi0nal instances. you Guardealy ADMIT IN me
/ these ''intustioes." matter how small numer-
the railroads, which exacerbate the. public mind.
arouse Indignation and IuTnlSh oasls Tor Fltuper,
present system of private ownership Of railway
There might be cases. Dr. schurrnan goes on to
say. in which shippers would declare that rates
! were not reasonable. while the railway president
would declare they were, and the question would
be whether the determination of what reason
able should be left to railroad TO settle unchecked
by. government agency In that event the natu-
raj tendency of the railroad would be to apply
the monopollstic axiom of charging all the traffic
will bear
NO GOVERNMENT OWNERSHIP.
Dr. Schurman summarizes the next point made
by Mr.. Tuttle as follows: IF government fixes
the maximum price of railway transportation, it
maximum and minimum prices it must take over,
and operate the railroads. In contToverting
this. Dr. Schurman says:
Now. the proposition before the American pub
. lie has reference to the fixing OF maximum rate
in particular case. and not to the fixing OF max
gueGees which might follow from the latter course
railway rates were in question. as they are not,
would not any administrative board and any judi
cal tribunal Of the United States. in determining
wnat rates were just and reasonable. take account
both of fair returns capital invested and Of fair
-
sariiy be estimated by current market prices?
In all your reasonings this subject you seem
and railway earnings destroyed if any but
the railway president and other officials has word
0 about the bleneSs of rate-and
that although the goyernment has special juris-
called railways have. you admit. become monop-
Is it not an imaginary spectre which your fears
or your suspicious conjure UP? But, imag mary or
not. you invoke it upon a supposition which does
government shall TX railway rates generally. And
making a specific rate when complained Of just
I and reasonable? Is the Interstate Commerce Com
reasonably low? If It did, would not the courts
But return 10 the augmentation Of the extract
from your letter You evidently feel it has great
the remaining sequences Of your argument chal-
depends. Why must government If il fixes the
maximum rate of transportation. also fix the
submit that you cannot establish the major premise
natural aw natural law is meTsiy the rec6rG 20 q
of unifofnly observed sequences. What observa-
strated Law 10 the effect that whoever fixes
re @ BrGe % n ne must dx also
maximum rate in specific cases 70 prevent extor-
a 9n ana rate m 81 fee @ saeE e f5 a the mini
interest Of the railway company:
regulation Of railroads to the limited extent pro-
posed by Frezident Roosevelt necessarily develops
admit that in the mind Of the public the alterna-