Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-04-28
PECK ARGUES The
RAIE QUESTION
Counsel For the Milwaukee Sys-
TEN Says Commission Should
Not Make Rates
WOULD BE GREAT CALAMITY
Declares 1t Would Be Violation of Con-
stitutionaI Rights and Assumption of
Power That Does Not Belong to Any
Government, Much Less comms-
sion.

Washington April 2S. - George Il.
Peck general counsel for the Chicago,
| Milwaukee & st. Paul railway, was
before the senate committee on inter-
state commerce investigating the rail-
way and rate questions. He made
lengthy. argument against the propo-
sition to give the interstate commerce
commission the power to make rates.
Peck said in part:
"It is certainly not practicable
even If it were wise--to endeavor Dy
legislation to eliminate the activities
which lie at the basis of commerce,
trade and traffic, and to substitute IN
their place rigid control and regula-
tion Of paternal government. That
is the Chinese method, and 4 trust
never will be the American method.
Men will always strive for their own
advantage and out Of this strife all
commercial progress has come.
"That commerce carried on without
any governmental regulation or con-
troll, would best serve the public, do
not believe. And yet it does not fol-
low that 1t should be subjected to the
minute interference of body of men
who In the nature of things can not
grasp It's needs and it's requirements,
and the needs and requirements of the
public"
Mr.. Peck insisted that rebates had
ceased or could be corrected under the
present laws, and continuing, said the
proposed legislation. if rebates still
existed at all, would not be effective.
He said:
"a railway company can cut rate
made by commission as easily as II
can cut rate made by itself. Making
u rate IS one thing. cutting rate is'
another and they have no possible
relation to each other. If rates had
been made by a government commits
sion for the last twenty years 1t is
perfectly plain that the rel -. system
would have grown and hourlshed as IL
did under system which allowed
railways to make their own rates.
Speaking for my own compay-and
in a sense for many other companies
/ have only to say that they Will Wei
come any legislation, criminal or re-
medal which in any degree can make
the payment Of rebates more difflcult
and increase the certainty of detection
and of punishment.
But if it is supposed that the pay
ment of rebates can be suppressed by
giving to the committee the power to
fix rates suggest that such result
is absolutely impossible.
"The rate making power upon any
railway is the power Of commercial
life and death. 1t is, under the con-
stitution, clearly property right =
subject of course, to the regulating
power of the state which created it
and as to interstate business-of the
United States. All property rights in
this country are protected by the fed
eral constitution; and the term liberty
means, not simply the physical privi-
lege Of being out of JAIL but the right
freely to carry on ones business, using
and enjoying ones faculties and liber-
ties, according to the law of the land.
"Placing all of these in the hands of
a commission is certainly wrong, and
probably unconstitutional.
ssThere has been considerable discus
sion as to the relation of the Esch-
Townsend bill to the preference clause
of the constitution. The bill, undoubt-
edly, proposes a comprehensive system
of rate making by the commission. If
it becomes law the most powerful
body of men in the world will be the
interstate commerce commission Of the
United States.
"There are nearly 215000 of miles Of
principal business of most of them is
yr,l ;oh La
Esch Townsend bill proposes to put
under the care Of the interstate COM
merce commission exceeds that of all
Europe combined. The constitution
provides that no preference shall be
given by any regulation of commerce
or revenue to the ports Of one state
over those of another
"Can the interstate commerce COM
mission-which under the Esch-
Townsend bill will stand in the place
of congress - under this limitation
make any preferences in its regula-
tions, of the ports of one state over
those of another?
"If the constitutional provision APP
plies and is binding on the interstate
commerce commission, they can not
make preferences, but if on the other
hand-as they themselves insist-they
will not be governed by this constitu
tional provision in the making of rates.
then submit the power never should
be given to them. It is an open ques-
ton today, which would be the greater
calamity to the people of the United
States. to have the constitutional pro-
vision applied so that only distance
tariffs could be made to the ports of
competitive states or to have it held
that the constitutional provision does
not apply and may be disregarded. In
either case the evil consequences would
be far beyond calculation.
II have had the pleasure of reading
an opinion recently submitted to this
committee by the interstate commerce
commission. in which that body adj
vises you. that the constitution would
not stand in the way of their making