The Washington times., 1905-12-05

not be lawful to go-the maximum rsa-
sonable rate, as 1t 10 commonly called
this decision to 60 into eject within q
reasonable time and 30 obtain from
thence onward, subject to review by
the courts.
1t sometimes happens at present, not
that a rate Is too high but that a
favored shipper is given too low a rate.
In such case the Commission would
have the right to fix this already es-
tablished minimum rate as the maxi
mum: and it would need only one OF
two such decisions by the Commission
TO cure railroad companies of the prae-
tice OF giving improper minimum rates.
call your attention to the fact that
my proposal is not TO give the commits
sion power to initiate or originate rates
generally, but to regulate q rate al
ready nxed or originated by the roads,
upon complaint and after investigation.
A heavy penalty should be exacted
from any corporation which falls TO
respect an order OF the Commission I
regard this power to establish a maxi
mum rate as being essential to any
scheme OF real reform in the matter of
railway regulation. The first necessity
is to secure 1t; and unless It is granted
to the Commission there is little use
In touching the subject at all.
Shippers to Blame.
Illegal transactions often occur un-
der the forms of law. It has often oc-
Cured that shipper has been told by
traffic officer to buy a large
quantity of some commodity and then
after it has been bought an open reduc-
tion is made In the rate to take effect
immediately. the arrangement resulting
10 the profit of the one shipper and
the one railroad and to the damage Of
all their competitors. For Il must not
be forgotten that the big shippers are
at least az much to blame az any rail-
road In the matter of rebates.
The law should make IL clear so that
nobody can fail to understand that any
kind of commission paid on freight
shipments. whether I'm this form or in
the form of fictitious damages or of a
concession. a free pass. reduced pas
senger- rate. or payment OF brokerage,
is illegal.
1t is worth while considering whether
it would not he wise 10 confer on the
Government the right of civil action
at least twice the value of the rebate: !:
this would help stop what is really
bIackmail. Elevator allowances should
be stopped, for they have now grown
to such an extent that they are demor-
alizing and are used as rebates.
The best possible regulation of rates
would, Of course, be that regulation Sc
cured by an honest agreement among
the railroads themselves 10 carry out
the law
Such a general agreement would. for
instance. at once put a stop TO the ef-
forts Of any one big shipper or big rail-
road 10 discriminate 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 stop TO agreements to the
detriment of the public should, in my
Judgment. be accompanied by power to
permit. under specified conditions and
careful supervision. agreements clearly
I'm the interest OF the public But. in
my judgment, the necessity for giving
this further power is by no means as
great az the necessity for giving the
Commission or administrative body the
other powers I have enumerated above
and IL may well be inadvisabie to at
Tempt TO vest this particular power IN
the commission or other administra-
tive body until IL already possesses and
Is exercising what regard as by far
the most important OF all the powers
I reoommend-as indeed the vitality i'm
portant power-that to hx n given
maximum rate, which rate, after the
lapse of a reasonable time, goes into
full effect, subject to review by the
courts.
Supervision for Private Cars.
All private-car lines. industrial roads.
refrigerator charges, and the like should
he expressly put under the supervision
Of the Interstate Commerce Commission
or some similar body so far as rates.
and agreements practically affecting
rates. are concerned The private-car
owners and the owners Of industrial
railroads are entitled To fair and rea-
sonable compensation on their invest
ment, but neither private cars nor in
dustriaI railroads nor spur tracks should
be utilized as devices for securing pref
crential rates.
rebate in icing charges, or in mile
age, or in a division of the rate for re-
cious as a rebate IN any other way.
No lower rate should apply on goods
imported than actually obtains on do
nestle goods from the American sea-
board TO destination except In cases
where water competition rs the control
ling influence.
There should be publicity of the ac-
counts of common carriers; no common
carrier engaged in interstate business
should keep any books or memoranda
other than those reported pursuant to
law or regulation, and these books or
memoranda should be open TO the In
spection OF the Government
Only in this way can violations or
cvssions OF the law he surely detected.
4 system of examination of railroad
accounts should be provided similar 10
that now conducted into the national
banks by the bank examiners; a few
frst-class railroad accountants. II they
had proper direction and proper author
ity to inspect books and papers, could
accomplish much in preventing willful
violations OF the law. 1t would not be
necessary for them to examine into
tho accounts of any railroad unless for.