The Birmingham age-herald., 1905-01-14
SPENCER WANTS REBATES STOPPED Says Such a Law Cannot be
 Too Drastic OPPOSES PROPOSED BILL Thlnks 1t Would End In Allowing the Commission to Fix Rates Arbltra.
 rlly Throughout the
 Country.
OPPOSES PROPOSED BILL

Washington. January 1S-Opposition to government rate making for the railroads was continued today before the House committee on interstate and foreign commerce.
 President Samuel Spencer of the South ern railroad resumed his argument of yes- terday against the Quarles-cooper bill. The committee refused by a vote of { to to go into executive session to con sider motion by Representative Davey of Louisiana to close the hearing on the question January 24.
 MT Spencer taking up the increase in the receipts of railroads in 1903 of $155,- 100000 over the year 1899, emphasized again that the year 1899 was the lowest rate period in the history of railroading. He said that If the character of the ton nIge had been precisely me same during tne years 1899 and 1903 there would not have been the $155. GOO difference in rates.
 There are, however, fluctuations going on in classification all the time but these re-classhcations have not resulted in in- creasing rates.
 
 there would be any objection to a uni form classification of freight throughout the country, MT. Spencer said there might not be- although 1t would without doubt throw the rates of certain railroads out of line. If it was done violently and suddenly it would result in a commercial upheavel. The putting of freight into classes to avoid rate on every com modity, he said had been a matter of evolution. Certain groups of roads had worked out their own classifcations and to disturb it would. mean a general re- adjustment of rates.
 Rates Differ for Different Ways.
 Asked if freight rates were the same both ways on a given road, MT. Spencer said there was often a great difference In rates on the same commodity each way of the road
 Answering Representative Richardson of Alabama Spencer said:
 Speaking unofficially for I might say 7a per cent. of the railroads of the coun- try I assert that you cannot. make a law forbidding rebates too drastic to suit us."
 No well managed road now gives re- bates he continued. and any method to absolutely prohibit the practice would be welcomed by the railroads.
 Reverting again to the practice of re- classification of freight, which Is con stantly going on, Mir Spencer said the result was uniformly a reduction and not an increase in rates Asked as to what power the Interstate Commerce Commits sion had regarding rates MT. Spencer said.
 "It has power to state what Is an un- reasonable rate, and we have the right to test that assertion in the courts.'
 The conferring of the power to declare what Is reasonable rate. he maintained would be prejudicial to the commercial interests of the country.
 Confessing that he had not read the pending bill with the idea that 1t grant ed authority to the commission to raise rates. in naming "a reasonable rate,' MT Spencer said that in his mind such au- thority would be carried in the measure
 Would Be a Reduction.
 But he doubted if the authority would be ever exercised. He indicated that the readjustment would uniformly be re- auction in rates.
 Carriers, he said, did not expect an arm of the government to help them to raise or maintain rates. but they ought to be left free to cooperate with each other in the way of making reasonable agreements' among themselves. These agreements should be made public If necessary. It was indispensable that the carriers should know what each other were doing on rate on one particular commodity.
 "If legislation is to take place in any form" he continued. and we hope it will not be in this form 1t should include something that will insure stability of rates. and these rates should be high enough to remunerate the carrier for the pd this connection there are three. four or five statements In reports of the Interstate Commerce Commission that there are many in- stances in this country where rates are entirely too low"
 "The man does not live" asserted MT Spencer, "who can draft a law that will grant authority to any body of men that can be exercised. effectively to abolish discrimination between localities. It Is impossible to do away with the complaint of discrimination on the part of locali- ties"
 The present bill, he said. would infiict an irreparable injury on a railroad which has fixed rate. after a careful consid- eration, by having the rate set aside and another named by the commission and the whole matter locked up in the courts
 The bill. he said would be conferring anomalous powers upon one body The commission was created to institute pro- ceedings against carriers. Here 1t was proposed to invest that body with a judicial function-the power to condemn rate as unreasonable.
 Have Three Functions.
 Then the next step contemplated was to give them authority to name a new rate for the future, a function under the law and decisions of the courts, he said, a legislative function. This would make the commission hrst q prosecuting body, next a judicial body, and lastly a legisla- tive body. MT. Spencer asked the com mittee if 1t were not worth while to stop and consider most carefully the effect of the pending bill. in view of the unprece- dented powers 1t granted. Speaking for the railroads, he said:
 "All we have the right to ask Is that the subject shall be given a very thor ough and careful consideration before ac- ton Is taken"
 The granting of the power proposed, he maintained, meant that eventually, if not speedily, the commission would be forced to make every railroad rate in the country.
 Including. he suggested that in his opinion, the only legislation necessary on the subject at present, if indeed. any was necessary, was the stopping of ap- peals from decisions of the commissions at circuits courts. except where points of law were involved, when cases should go to the supreme court; that the freight carrying lines by water, the fast freight lines, and the private car lines all be brought under the jurisdiction of the