The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-10-27

Washington, October 23.-Samuei
Spencer, president OF the Southern
railway. made a brief stop in Wash
ington tonight on his way south. In
expressing his views of President
Roosevelt's recent speech on railroad
legislation at Raleigh. n. C..Mr. Spen-
Ger. who has taken a prominent part
in representing the railroads stti-
ture on rate legislation. said:
The Presidents speech indicates
that he is not disposed now 10 insist
that the power over rates which he
favors should be exercised by the in
ter-state commission but
:, an Administered tive body. AGAIN IN
the Raleigh speech the President adj
vocates that the administrative body
shall have power after complaint N
hearing TO fix only "a maximum rate
not an absolute ate, unalterable there
after by the carrier as provided for
in the Esch-Townsend bill. This ap-
parently follows the opinion OF he
attorney general of May 5th in which
it was held that Congress could con-
stitutionally empower a commission TO
fix maximum" rates, which ii regards
as just and reasonable.
THE difference between these two
rcsiticns is vital. To fix absolute rates,
unalterable by the carrier. in many
cases is to determine definitely n ar
bitrarily by governmental tribunal
the relative advantages OF competing
cities or regions To prescribe max
imum rates only leaves the carrier
free to make reductions, and may.
and generally will, result In adjust
ments which will bring down whole
tiers of rates, leaving the relations OF
rates as they were and entailing enor-
losses to the railways.
For instance, an adjustment or
rates to southeastern territory, that
would be more favorable TO Cincinnati
Chicago and st. Louis as compared
with the rates from the Atlantic sea-
heard cities. co lid not be successfully
made by a governmental agency lin
tied TO the making of maximum ra'es,
for the reason that IL Ii should be
ordered that the rates from the middle
western cities should not exceed ca--
tain maXima, the railways from the
eastern cities or the water lines
wcLi still be free to lower ths'- rates
and they would be forced 10 do so
in order to retain their business aud
to preserve business of the cities de-
pending on them for transportation
facilities. The result would be tina
substantially the same relative adj
justment of rates that had existed Le-
fore the issuance of the order will be
restored, and no one would have Ie-
ceise3 any substantial or lasting isne-
fit. It is true that the shippers from
h4AL ~a4+f-- -~-1A -
lower rates, but they would be retain
ed at the price of such inroads iito
the revenues of the carriers that de-
terioration in service might result.
The Importance of this considera-
ton, not only 10 the railways but The
shippers as well. can be appreciated at
this time. When there Is a car short
sage all over tho country, with fre!gnt
congestion at rnany points. Despite
he fact that the railways have been
:nvts:'rg largely in extension and in
e".::nC Obligations for the
purpose. heir fac::;:'s are not CT I2i
FIR fh.. traffic demands uoon Them.
These i, creased -,-EE -lLCrCs still ca
tinue. std from the . ,sent Quit Dk
r.1s. continue FOR a long tina. This
Will recLIre lar re adda'onal sums OF
MONEY. which .t.- ram ads can o.
tain only throug'' earnings and the
saIs Of new securities. Governmental
action lnat void reduce earnings
would impair both of these resour res,
and would render still more difficult
the task of meeting the requirements
1.-THE speech at Raleigh indicates
also that the President favors giving
10 the railways more leeway than he
formerly suggested by not having The
rate take effect Immediately, but In
some reasonable time. A reasonable
time for a rate may meal time for a
review of it by judicial and not admin
istrative authority. IL the rights OF
properly are found to be involved.
THE Esch-Townsend bin, as passed
by The house OF representatives last
winter, would not only have subject
ed the roads to punishment before tu-
dicial conviction, but the character
Of judicial review proposed was such
that hey would not have had the
tenefit of equitable trial even after
conviction. for b court would have
been precluded from considering the
reasonableness of the rate complained
OF, AMI the rate ordered by the CON-
mission would have beer set aside
only IL il had been found TO be cons
catory. IL Is important, therefore, II
legislation Is 10 be enacted that will
insure 10 the roads a square deal ira
the opportunity for a prompt and eiTec-
tive review of the whole case by the.
courts should be provided for"