The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1905-12-07


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 ~-d should be given to
some administrative body created by
the congress. II given to the present
Interstate commerce commission or to
reorganized interstate commerce
commission, such commission should
be made uneouivocally administrative.
do not believe in the government In
terfering with private business more
than Is necessary. do not believe In
the government undertaking any work
which can with propriety be left In
private hands. But neither do I be-
lieve in the government hinching from
overseeing any work when II becomes
evident that abuses are sure to OBJ
tain therein unless there is govern
mental supervision. II is not my prov
ince to indicate the exact terms Of the
law which should be enacted; but
call the attention of the congress to
certain existing conditions with which
II is desirable to deal. In my tudg-
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 ~.
whether a given rate prescribed by
railroad is reasonable and just. ana
n II is found to be unreasonable and
unjust. then, after full Investigation
OF the complaint. to prescribe the limit
OF rate beyond which IL shall not he
lawful to go-the maximum reason
nble rate. as IL is commonly called
this decision to go Into effect within
reasonable time and to obtain from
thence onward. subject to review by
the courts. II sometimes happens at
present. not that rate Is too high
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 u would need only
one OF two snch decisions by the com
mission TO cure railroad companies Of
the practice OF giving improper mini
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
regulate n rate already fixed or origi-
mated by the roads upon complaint
and after investigation. heavy
penalty should be exacted from any
corporation which fails to. respect an
order of the commission. regard this
power to establish a maximum rate.
as being essential to any scheme OF
real reform In the matter Of railway
regulation. The first necessity Is to
secure II; and unless II 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. IL has often oc-
CURED that a shipper has been told
| by traffic officer to buy large
quantity of some commodity and then
after IL 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: for
II 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 II
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 concession. free
pass. reduced passenger rate. or pay
ment OF brokerage, is Illegal. 1t Is
worth while considering whether IL
would not he wise to confer on the
government the right OF civil action
against the beneficiary of rebate for
at least twice the value of the rebate:
this would help stop what Is really
blackmall. Elevator allowances should
be stopped. for they have now grown
TO such an extent that they are de-
moralizlng 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
| nut n 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
Il ,of IN rntlrnada them h
selves agents for enforcing the law.
The power vested In the government
| TO put 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
ly in the interest OF the public But,
| in my Judgment. the necessity for
| giving this further power is by no
| means rs great as the necessity for
| giving the commission or administra-
tive body the other powers ! have
enumerated above; ana IL may wen
be inadvisable to attempt to vest this
particular power In tho commission or
other administrative body until IL al
ready possesses and Is exercising what
regard as by far the most important
of all the powers | recommend-as In
decd the vitality important power
| that to fix n given maximum rate.
which rate, after the lapse or reason
able time. goes into full effect. subject
TO review by the courts
| All private car lines. Industrial roads,
refrigerator charges. and the like should
be expressly put under the supervision
of the Interstate commerce commission
or some similar body so far as rates and
agreements practically affecting rates are
concerned. The private car owners and
the owners OF Industrial railroads are en-
titled to a fair and reasonable compensa-
ton on their Investment. but neither pri
| yate cars nor industrial railroads nor spur
tracks should be utilized as devices for
securing preferential rates. rebate Ia
icing charges. or IN mileage, or In divi'
sion OF the rate for refrigerating charges
| is lust as pernicious as rebate In any
| other way No lower rate should apply
on 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; nc
| common carrier engaged In Interstate
business should keep any books or mem
oranda other than those reported pur-
| suant to law or regulation and these
| books or memoranda should be open ia
the Inspection OF the government. Only
| in this way can violations or eVasions OF
the law he surely detected. 4 system nj
examination of railroad accounts should
be provided similar to that now conducted
into the national banks by the bank ex.
aminers; few hrst-class railroad ac.
countants, II they had proper direction
and proper authority Ia inspect books and
papers. could accomplish much In pre-
venting willful violations of the law. II
would not be necessary for them TO ex-
anime into the accounts of any railroad
unless for good reasons they were direct
ed to do so by the interstate commerce
commits sion. 1t is greatly TO be desired