The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-10-20
RAILROADS POINT
out RATE REMEDY
Say Courts Can Adjust Rates and
Will Frame Bill on
That Basis.
BY w. w. Jermane.


Washington, Oct. 2O-What the op-
ponents Of the president s railway-rate |
policy mean by their proposed remedy |
of an appeal to the courts, is now be-
coming known. These gentlemen say
that it is not their intention to ask for
any law that will conflict with the gen.
orally accepted idea that rate-making is
a legislative and not a judicial function.
They profess to agree with the presi-
dent and the attorney general, when
those officials say that this right, if ex-
ercisedD at ALL must be exercised by the
legislative arm of the government, and
then they proceed to show how they
would solve the existing problem, and
incidentally prevent the president from
securing the one thing which he regards
as most important, namely, power for
name a rate and have it 60 immediately
into effect.
j. Foraker May Draft Bill.
The bill which will embody the plans
of the opposition to the presidents pol
icy may be introduced by Senator For
aker, who has given the question per-
haps larger amount Of intelligent
This bill will stand in direct oppogi-
tion to the Esch-Townsend bill, and the
contest for legislation will be waged
around it.
In the first place, this bill will be put
forward as compromise, and the presi-
dent will formally be asked to accept it.
Upon his refusal, the bill will be pushed
In the senate, and the railway inter-
ests are saying that its provisions will
mark the limits Of any legislation tnat
will accept every point demanded by
the president except the one mentioned
| above, and it will, in addition, offer a
substitute remedy for rate discrimina-
tions. This remedy will consist Of an
amendment to the present statute pro-
viding for the institution of rate COM
plants in federal circuit courts, and the
holding of primary hearings Def ore such
courts without the preliminary inquiries
before the commission.
Will Evade Constitution.
According to this plan, the action in
the circuit courts would be in the ma
ture of bill Of equity, and the remedy
under it would be writ Of injunction
forbidding the offending railway from
continuing to charge the rates COM
planned of. Such a plan it is claimed
gets around the objection Of unconstitu-
tionality which would apply if an. ef-
fort were made to get court to make
rate for the future, and the negative
| action of the decree it is claimed would
| compel the substitution of reasonable
| rate for the original unreasonable one.
The novel point in connection with
this compromise offer is that it does not
| so much involve new legislation as the
calling attention to the provisions Of
statute already in force "a statute
! which has been ruled upon by the SUI
preme court and held to be sound, but
which Ixy
complaining shippers. It is pointed out
that the Elkins law, in 1908, strength
ened this statute by adding the remedy
| of injunction to the other means Of
| reaching secret rebates, until the stat
| ute now covers not only discrimina-
tions between individuals, but between
communities as we'll. Justice White,
who handed down the unanimous deci-
sion of the supreme court which upheld
of the demands of the public for in
creased power for the interstate COM
MERGE commission, or, in other words,
that it fully meets the complaints
which the public has been making for
years against the carriers, these COM
plants being at the base of the present
agitation for additional legislation.
Relief Thru Equity Suits.
|
The opinion handed down by Justice
White may be found in 189 u. 8. Re-
ports, page 283. It says: "In the ma
ture of things it cannot be ascertained
from the record whether the railroad
| company now exacts the rates COM
planned of as being discriminatory, and
which it was the purpose of the suit to
correct; but if it does, of course. the
power to question the legality of such
rates by suit in equity, brought like
the one now here, clearly exists" .
This, then, is what the railroad people
mean when they speak Of there being
books to meet the demands of those in
terests which are demanding new legis-
lation. AS their proposition will carry
everything which the president de-
mands except one, it is figured by the
railroad interests that it will prevent
the president from securing the passage
of the Fsch- Townsend hill