New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-06
RAILROAD RATE REGULATION.

Illegal transactions often occur under the
forms Of law. It has often occurred that q
shipper has been told by a traffic officer to buy
a large quantity of some commodity, and then
after it has been bought an open reduction is
made in the rate to take effect Immediately, the
arrangement resulting to the profit of the one
shipper and the one railroad. and to the damage
of all their competitors; for. It must not be for
gotten that the big shippers are at least much
to blame as any railroad in the matter Of re-
bates. The law should make it clear so that no
body can fail to understand that any kind OF
commission paid freight shipments whether
in this form or in the form Of fictitious damages,
or or CONCESSION rree pass, reouceo pas
senger rate, or payment Of brokerage. is Illegal.
It is worth while considering whether it would
not be wise 20 confer on the government the
right Of civil action against the beneficiary of g
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 al extent that they are
demoralizing 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
BEST REGU- general agreement would. for
LATION instance, at once put stop to
OF RATES. the efforts Of any one big
shipper or big railroad to dis
crinanate against or secure advantages over
some rival; and such agreement would make the
railroads themselves agents for enforcing the
law. The power vested in the government TO put
q stop to agreements to the detrlment OF the
public should in my judgment, be accompanied
by power to permit, Under speclhed condltlo!s
and careful supervision. agreements clearly IN
the interest of the public. But, IN my Juog-
ment the necessity for giving this further power
is nv nc means as great as the necessity for
giving the commission administrative BODY
The other powers have enumerated above; ana
If may well be tnadvisable to attempt TO vest
This particular power in the commission or other
administrative body until it already possesses
and is exercising what I regard as by far the
most important of all the powers l recommend-
az indeed the vitality important power-that TO
~ given maximum rate, which rate, after the
ianse Of a reasonable time, goes into full effect
subject to review by the courts.
III nrfI7ste car lines Industrial roads, refrig-
orator charges and the like should be expressly
mt under the supervision of the Interstate Com
1aerca commission or some similar body so far
as rates and agreements practically affecting
"a tes are concerned. Inc private car oWlleiS
- ere owners of industrial railroads are en-
+I.1ad 70 a fair and reasonable compensation on
tt,ei, investment, but neither private cars nor
sT,7I+s+riai railroads spur tracks should be
utilized as devices for securing preferential
ra+oS 4 rebate in icing charges or in mileage,
-. IN n division of the rate for refriSerattng
ctsrees is lust as pernicious as q rebate
in any other way NO lower rate shouIu
univ on goods imported than actually OBJ
+5i51c on domestic goods from the ATnerl-
els .oLoord "a destination except in cases
11.I,a~e wafer competition is the controlling IN
G,,epce There should be puDllclty OF the &C
counts of common carriers; no common I carrier
f,ooi-s or memoranda other than those reported
1890, ~ 70 law or regulation, and these books
- ,na,ooranda should be open to the inspection
~ +te eovernment Only in this way can viola
+;o,1- or evasjons of the law be surely detected.
a system of examination OF railroad accounts
a 80 Ia crowded similar TO that now con-
Js-,o+a5 into the national banks by the bank ex-
oirere- few first class railroad accountants.
90 +t,a11 had uroper direction and proper au-
thority TO inspect books ana papers could ac-
a1arI;sb much in preventing wilful violations
80 ~ law IT would not be necessary for them
10 examine into the accounts OF any railroad
unless for good TeaA 9ns they Wsts dLIecled 10