Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-01-12
ARE NOT UNfR|ENOLy
Sentiment Of Leading Trans
portation Lines.
READY TO COOPERATE
RAILWAYS IN SYMPATHY WITH
THE PRESIDENT.
President Spencer Declares That The.
Oppose Giving Rebates-Think
Present Law Enough.

Chicago Milwaukee and st. Paul, North
ern Pacific, Illinois Central, Delaware,
Lackawanna and other railway companies,
spoke vigorously today before the House
committee on interstate and foreign COM
merce against the Cooper-Quarles bill or
any proposition to authorize the interstate
commerce commission to fix railway rates.
Mr.. Spencer is the first direct and official
representative of the railways to be heard
by the committee, and his testimony is re-
garded as the keynote of the opposition to
rate-fxing by the government.
Mr.. Spencer stated at the outset that 1t
was not his purpose to discuss the subject
in its entirety. There were, however, a
number of important points which he wish
ed to emphasize. The interstate commerce
law and the commission, he said, had
been In operation for eighteen years Be
fore it's operation the rebate, the secret
contract and discriminatory devices of
various kinds were the rule. Now the re-
verse is the case. Rates are substantially
maintained.
There is no difference of opinion" con-
tinued Mr. Spencer, between the railroads
of the country. Congress and the President
on the subject that rebates are wrong.
We agree with the language of the Pres
ident that the highways of transportation
must be kept open to all upon equal terms
On that basis the railway companies are
ready and anxious to aid and cooperate.
But 1 do not think any additional legisla-
tlon Is necessary in order to proceed
against that particular class of abuses If
such legislation does appear to Congress
to be necessary, the railways of the coun-
try Will certainly stand, and I have no
hesitancy in saying so, in cooperation and
aid to that end
That particular phase of regulation has
already been pronounced by the commits
sion as fully covered by existing statutes.
1t simply becomes a question of enforce
ment of the law.
But the question before you is not of
that character-it is that of the power to
name a rate upon the part of the commits
sion after complaint and hearing. 1t has
been claimed this will be a means of stop
ping rebates. This claim I have no hesi-
fancy in disputng, and will give it atten-
tion later" -....~
Decisions of the Commission.
Asking the question as to the necessity
for the proposed legislation, Mr.. Spencer
answered it by reviewing the situation as
developed during the last eighteen years.
About 80 per cent of all the claims or
questions of various kinds which have
been presented to the interstate commerce
commission during that time have been
adjusted without formal hearing and de-
cision the part of the commission
That" he said, docs not indicate either
fight or non-co-operation on the part
of the railroads.
OF the remaining 10 per cent of the work
of the commission scarcely per cent was
the subject of litigation. Reducing the
suits to figures. Mr.. Spencer gave the num-
Der as 43 suits out of 1914 cases decided
against the railroads. Showing the rail-
roads acquiesced in four-fifths of the de-
cisiOns of the commission Out of the 43
which went to litigation % related to rates,
and in % out of the % cases the decisions
of the commission were reversed by the
courts. One case only was affirmed by
the courts in it's entirety, while two were
partially confirmed and partially reversed.
These figures covered eighteen years, and a
railroad mileage of 100000 miles at the
present time and 135, 600 miles at the begin
ming of the period named.
Does this indicate the necessity for legis-
lation with respect to rates?" queried Mr..
Spencer.
Referring to the personnel of the COM
mission, he expressed the confidence of the
railway world in it, and said it was Justly
worthy of the respect of the country
Power to Make Rates.
There was but one feature of the Quarles-
Cooper bill which he wished to discuss spe-
officially. That was the portion comforting
power on the commission to substitute a
rate for one complained of as unrea sonable
after due hearing, said rate to remain in
effect, subject to change only by the COM
mission or by the courts on appeal by the
railways. The reasons advanced for the
necessity of this power were enumerated
by Mr.. Spencer, the first being that it IS
merely restoring power which the COM
mission had for ten years exercised
This power Mr.. Spencer denied had ever
legally existed. and he reviewed the cases
and litigation which led to the decision of
the courts prohibiting the exercise of the
power by the commission in 1897. ut is
also claimed he continued, that this
power would be weapon in the hands of
the commission to prevent rebates But a
rate fixed by the commission can be re-
hot III nA ctIxy
other. 1t has also been claimed but not
officially, 1 believe, that such a power in
the hands of the commission would act rs
a deterrent in the matter of secret rebating
and other devices for evading rate.
But the use of that weapon would punish
not the evader of the rate, but the road
which upheld the rate, as it's exercise
would be to let the rate down to the lower
ngure, thus working no hardship on the
road. making the less rate but furnishing
the road maintaining the regular rate
Prevention Of Discrimination.
The most important claim in the whole
situation Mr.. Spencer believed to be that
such power would enable the commission
to prevent discrimination between locali-
ties. This question of adjusting rates be-
tween localities, he said was the most
difficult and intricate of all. The present ad-
justment was the outgrowth of natural
competition, not only between localities
l WHICH Hdu anu WOulu always exist, but be-
tween railroads as WELL To disturb this
adjustment or to begin it's disturbance,
he maintained, would not only be task
so enormous that no statement could con-
| vey comprehension of it, but would be
| impossible of satisfactory completion in the
hands of a body with authority only to take
| into consideration the one phase of adj
| justing rates with reference to their eauaIi-
cation so far as the carrier was concern
/ ed, and leaving out the question of COM
petition between localities.
Matters to Be Considered.
| In this problem the Price of commodities
| of every sort would have to be taken into
| consideration, and he instanced the compe-
| tition between mining centers, agricultural
| centers. manufacturing centers. etc, as IL
lustrating his meaning. Stability as to
prices of commodities could not exist. he
| maintained Should such be the case COM
/ sner.e would become absolute stagnation.
eeaisbg he commissions report Mr. Spen-