The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-10
HONESTY AND GOOD SENSE,
Mr. MoCall's speech on Federal rate
Regulation That Is COnnscltion.
From the Congrcssio nal Record.

our RAILROADS NniCn utHiUl Nl' hAlrHlioh W
Congress although believe that under the
operation OF the Elkins act they are eNcep-
tonal There can be no doubt that favort-
ism and the unequal treatment OF shippers by
some railroads have been in the past carried
40 far as TO turn the scale between compcu-
tors In the M me lines OF business, building np
the fortunes OF one set OF men and destroying
the fortunes Of another. Rebates ana secret
rates lower than published arinS nave peeh
given 20 favored individuals. Extraordinary
concessions have been made to shippers VINO
own their private cara. 70 snail terminal
switches that masquerade under the name
OF independent railroads. and there has been
direct favoritism in the allotment OF cars
among shippers In times when the demands
OF trufilc we're too great for the facilities OIL
the railroad Public opinion has been aroused
upon this question OF fIvoritism. and aroused
Justly Congress should deal, and deal III no
general terms which may be liable to DOUBT
mi construction. but clearly and explicitly.
with these abuses 80 that II they now exist
they may be stopped and II they do not exist
they may not be put in practice hereafter.
But gentlemen dec.aim about one set OF
abuses and propose a remedy for something
else They graphically portray the eNll OF
favoritlsm and discrimination and then an
nounce the triumphant non stQuttW mat
the commission should be given power TO NIX
the rates at which railroads should sell lhelr
transportation What relation has the max
ing OF rates by the Government TO the giving
OF rebates 10 favored shippers. under one
device or another unless 1t be the relation
OF cause TO effect? Can not railroad grant
a rebate from a rate established by a com
mission as we'll as from one established by
tself2 Rather 1t seems 10 me- rate fixing by
an agency OF the Government would aug
ment the evil We may assume. think with
entire safety that the commission would not
compel the public 10 pay higher rate than
the railroad asked. II II lnterfered with rail-
road rates Il would interfere 10 make them
lower The tendency OF reducing rates would
be TO make weak lines weaker. and in their
struggle for self-preServution they would
naturally offer any inducement in their power
to secure the business OF great shippers. You
say such a course would be criminal. but such
a course ia criminal under existing law.
My objection to the bin proposed IL two
fold: First. that 1t does not deal effectively
with the real evil and Tint IL makes most
illogical response to the real public opinion
and second because IL does provide for the
exercise OF dangerous power With too slight
safeguards. power which is not asked to be
conferred by anything worthy Of the name
OF public opinion and which at the most is
sustained by mere public emotion.
MIR. Herman. one OF the most intelligent OF
the advocates OF this legislation. declared
that ninety -nine out Of hundred shippers
did not complain that rates were too high,
but complained at the relative rate-in other
words al form OF discrimination. An at
tempt is made to utilize genuine and well
founded public sentiment against any kind
OF unequal treatment by railroads in favor
Of a proposition that the Government shall
fix railroad rates under the slender safe
qua rds OF this bill and embark upon policy
likely 10 be followed with consequences which
very few men have considered Bring in
bill which shall restore some Of the pcnalties
which only two years ago Congress blindly
repealed prohibit both specifically md gem
orally the employment of the different de-
vices for comforting special rates and then
enforce the law which you shall enact and
the day OF unjust discrimination by railroads
will have ended and the abuses which have
been compliance OF will disappear.
Bat az said. this bill not only does not do
that effectively, but il does sonnet hing entirely
different Badly and honestly stated, its
chief purpose is to have the Government
establish railroad rates. The advocates
of the proposition are aware that they are
making an extraordinary proposal. from the
frank statement OF which they recoii This
is shown by the way in which they employ
Ia qua ge TO minimize IT. They say that they
do not ask the Government to nX initial rates
or 70 clothe the commission with general
authority 10 fS railroad rates, hut whore
published rate is CHALLENGED they ask that
the commission may revise H. II is APP
parently to be something very exceptional
and very remote. As interstate rates must.
under the present law. be published from all
railroad points II follows that there could
not be an initial rate upon railroad which
had not yet been built. and the power 10 re-
wise one published rate involves the power tn
revise all published rates single COM
pla nant. under the operation OF this bill,
could. without doubt. bring In question all
the rates from Chicago for instance. 20 Bos
ton. New York and Philadelphia, as related
TO the rates from Chicago to New Orleans
IL. indeed. he could not nttacl. every railroad
rate in the nted States
The power 10 TX rates conferred by this
bill can certainly be exercised. by the em-
ployment Of the slightest Formally, against
every interstate rate In the country. That is
too plain TO be denied. Why. then do gentle
men recoil from their proposition; Why
do they AFFECT a conservatism as II they would
not do the thing they are proposing 10 do2
il is simply that the frank and unqualified
statement OF the policy would shock all no.
tions OF conservatism. ! agree to reguln-
ton but It must be regulation not ncoiu-
patble with the fundamental principles OF
private property as il has heretofore been
received Railroads are private property
a nd nre opera ted by private capital Before
permitting private property 10 be taken for
public use and much more for private use.
all civilized law eNacts in advance s1fe-
guards to protect the owner. but here you
propose a proceeding by which some por-
ton OF n mans property may be- absolutely
for the Use OF another, and YOU not
only exact no security In advance. but YOU
attempt TO restrain the owner from follow
ing the ordinary legal remedies in The consti-
tuuonal tribunal OF his country. ears after
ward perhaps courts may hold that the TAX
ing was Illegal and must be stopped. But
what remedy is there for the taking which
ha = already occurredp This feature OF your
bill crosses the line between regulation and
conflscaton and outra ges the most patent
principles OF Justice.
/ know " il said that the commission
thought for ten years that II had tho power
to rs railroad rates. am not sure that that
Is true as broadly as II Is stated. will quote
what was said with regard to the task OF
rate making on the part Of the commission
By Chief Justice Cooley. a gentleman who.
aud ] say il without dspara cement. was ,he
most considerable man ever a member OF
that body.
10 a country so large as ours. WITH 80 vast mile
.gc Of roads. II would be suptrhumhn. 4 con-
Iiructlon OF the law which would require the per
'ormance would render tho due Administration of
he law altogether Impractical. and that fact tends
wrongly 10 show that such a construction could
iot have been Intended.