The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-01-17
ESCH. TOWNSEND
RATE BILLS ARE In.
Increase Power Of Commerce Com
mission and Create Trans
portation Court.
New York Sun Special Service.


New York Sun Special Service.
Washington, Jan. Representa-
tives Esch and Townsend have intro
duced the bills regulating railroad rates
which they prepared at the suggestion
of the president and with the assist
ance Of Attorney General Moody. The
two bills will be consolidated.
The bills provide that the interstate
commerce commission shall have the
power to fix reasonable rate upon
complaint by the shipper or by the rail
road and that all appeals from the de-
cision of the interstate commerce COM
mission shall be to a court Of trans
with a chief Justice at $4,000, a, year
and four assistant justices at salaries Of
$500 a year. The members of the
court are to enjoy the same privileges
Of retirement as other members OF the
judiciary. Appeal from the court Of
transportation can be taken to the
United States supreme court. ~
The Minority Measure.
Representative Davey of Louisiana,
the ranking democratic member of the
committee on interstate and foreign
| commerce, after consultation with the
other democratic members of the COM
mittee, introduced bill to regulate rail
road rates. which represents the view Of
the minority of the committee.
| It provides that the interstate COM
merce commission shall have the power
to fix a reasonable rate upon the COM
plant of the shippers or railroad and
| that the decision Of the commission shall
be in effect until decision from court
is received after appeal.
The bill provides that at no time can
the Interstate commerce commission
raise a rate. If two rates are submitted
and the lower rate is decided as reason
able, the higher rate must be reduced.
This provision was put in on the theory
that the railroads would not make a
lower rate than they could afford to keep
in existence and to prevent any discrim-
nation in favor Of large concerns.
How Opinions Differ.
The wide diversity of opinion on the
rate and rebate question prevailing in
the senate was emphasized at the meet
tee. E. 2. Bacon, representing the inter-
state commerce law convention, was
given hearing.
Mr. Bacon said the Elkins law forbid
ding the giving and receiving of re-
bates is as complete and drastic as it
remains for the Interstate commerce
commission and the department Of JUS
| tice to enforce the act.
said Mr.. Bacon AGO. 1.-THE lep rebate " evil viii
be entirely eradicated. It may require
more machinery to make the law effec-
tive. The railroads should be required
1, There should be q. continuous system of
Inspection. believe there will be no
difficulty in obtaining the little addi-
tional legislation needed to prevent re-
Mr.. Bacon said the Quarles- Cooper
bill to increase the powers of the inter-
state commerce. commission should not
| be amended. Congress should take up
the one matter of rate regulation now.
! At the next session, additional ma
chinery can be provided for preventing
rebates. Not one-tenth as many people
are affected by rebates as by discrimina-
lions i'll freight rates, he said;
I Forms of Discrimination. f.
Bacon named these forms of discrim-
nation against the public: 4,
First-Rebates =
Second-Discrim nation as between
localities.
,o Observation-Disclosures .; as between
discrimination as between
distances
Fifth-Discrimination as between
quantities.
1T cannot fgure,'' said Mr.. Bacon,
"1that it costs more than 5 per cent ad-
ditional to handle less than car lots,
while the rates are higher by from so
to 80 per cent, and in some instances
reach $50 per cent in excess Of rates
charged for car lots. This discrimina-
ton as to quantities applies to all the
railroads in the country.'
Mr.. Bacon said there have been made
many complaints of this discrimination,
but so far as he knew no investigation
has ever been made except by the indus
trial committee.
AS Tt Affects Tariff.
Mr.. Bacon said discriminating rates
apply as we'll to imports as to exports.
There is no compensation, as the class
of goods is different. There is no protec-
ton to the people in this matter. The
discrimina lions neutralize the import
tariff, duties, but the people derive no
benefit from it.
Senator Tillman asked: "Does not
that amount to tariff protection for the
"It does,' Bacon replied, eff the
power we ask is conferred on the inter
state commerce commission it will pre-
vent such determinations '.r..