The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-15
The Situation in Germany.

This is precisely the situation in Ger
many, and it explains why, in that
country, the government has found it
to become a party to rate
contests between localities. The result,
it is asserted by the railroad men, has
been in that country an inelastic sys-
tenn Of rates, the paralysis OF the gov
eminent arm, thru fear of political con-
sequences, and condition of commerce
much worse than that which the present
laws sought to correct.
AS further hint Of the way politics
might be made to figure under a SYST
tom Of government raten1aking, another
illustration, taken from Germany, is per-
tinent: In 1894, the German govern
ment endeavored to correct, rate IN
CAPABILITIES by giving lower rate on
grain from eastern Germany TO the west
ern sections of the country. The new
rate incensed the western German grain
growers, who claimed that their near
ness to the point Of consumption en-
titled them to demand the continuation
of the old preferential rate, but for
several years they had no redress. Re-
Gently, however, the German emperor
became interested in great reciprocity
treaty with Russia, and this treaty was
brought up in the national legislative
BODY, where it was stoutly opposed by
members from the western German
states, who were strong enough to pre-
vent ratification. They made it plain
that they would prevent ratification I'M
less the Objectionable rate on grain were
repealed, and the government was COM
PEELED to yield and put the rate back
to the old discriminatory figure. linen
the Russian treaty was ratified.
Rate Regulation Evils.
The question in this country is
whether the ills it now has are greater
or less than those which rate-regulatlon
| bv the government might bring, and to
| the answer to that question the presl-
dent and his cabinet and other Thought
FIJI men are now directing their serious
attention. The senate committee on IN n
terstate commerce would serve the ra1l,
ways to much better purpose II 1t Wo Il q
admit that there are two sides to the
controversv. and incline itself to a fair
! treatment of all the witnesses
| Whether rate-regllation to the extent
| which the president, Governor Cumm y
and Mr.. Bacon demand would In the
end inevitably mean comforting on the
government the general ratemak1ng
bower. cannot be determined otfhand
# is doubtful whether the hearings az
a whole have thrown any conVl 1a,nale
apy Political economists and other ex
perts differ on the proposition, as &C &c
members Of the two houses Of congress
i And vet the answer to this question
1 must be clearly and CONTINGENCY maze az
before there can be any railroad legl 1
lation which the country will accept a.
satisfactory. It is conceded by MT =
other otiunn distinguished men who have test
fed in favor of the administr alton pro 9
gram ora that comforting general ratema !,
inc power On the government would !, b D
revolutionary. For this reason tn ne,
deem It inadvisable to confer the gen
eraI ratemaking power upon the com
mission. It is this view Of the cas-
which has brought so many shippers t
II washington. They have been inform I,
bv the railroads that the effect of tn
Il administration policy would be to CIV
| the government in the end, the genera
| ratemaking power.
' T q