Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-05


for harm to morals Is worse than any pos
sible harm TO material interests, and the
debauchery of politics and business by
great dishonest corporations is far worse
than any actual material evil they do the
public. Until the national government OBJ
tains, In some manner which the wisdom OF
the Congress may suggest, proper control
over the big corporations engaged in inter-
state commensurate is, over the great ma
1ority OF the big corporations-it will be
impossible to deal adequately with these
evils.
Legislation Suggested.
am well aware of the difficulties of the
legislation that / am suggesting, and of the
need of temperate and cautious action in
securing it. I should enphatically protest
against improperly radical or hasty action
The first thing to do Is to deal with the
great corporations engaged in the business
OF interstate transportation. AS 1 said in
my message of December last. the imme-
date and most pressing need, so far as leg
islatton Is concerned. Is the enactment into
law of some scheme to secure to the agents
OF the government such supervision and
regulation OF the rates charged by the rail-
roads of the country engaged in interstate
traffic shall summarily and effectively
prevent the imposition of unjust or unreas-
enable rates. 1t must include putting a
complete stop to rebates in every shape and
form. Tits power to regulate rates, like
all similar powers over the business world,
should be exercised with moderation, eau
ton and self-restraint but it should exist,
30 that it can be effectively exercised when
the need arises.
The first consideration to be kept IN mind
should be given to some administrative
body created by Congress. If given to the
Interstate commerce commission or to re-
organized interstate commerce commission,
such commission should be made unequiv-
ocally administrative. l do not believe in
the government interfering with private
business more than is necessary. l do not
believe in the government undertaking any
work which can with propriety be left in
private hands. But neither do believe in
the government iinchng from overseeing
any work when 1t becomes evident that
abuses are sure to obtain therein unless
there is governmental supervision. It is not
my province to indicate the exact terms of
the law which should be enacted; but l call
the attention of the Congress to certain ex-
listing conditions with which it is desirable
to deal. In my Judgment the most impor-
tant provision which such law should con-
tain is that comforting upon some compe-
tent administrative body the power to de-
eide, upon the case being brought before
It, whether given rate prescribed by
railroad is reasonable and just and II it Is
found to be unreasonable and unjust, then,
after full investigation of the complaint to
prescribe the limit of rate beyond which it
shall not be lawful to go-the maximum
reasonable rate, as it is commonly called
this decision to go into effect within rea-
sonable time and to obtain from thence on
ward, subject to review by the courts It
sometimes happens at present, not that
rate is too high but that favored shipper
Is given too low a rate. In such case the
commission would have the right to fix this
already established minimum rate as the
maximum. and it would need only one or
two such decisions by the commission to
cure railroad companies of the practice of
giving improper minimum rates. I call your
attention to the fact that my proposal is
not to give the commission power to initi-
ate or originate rates generally. but to reg
ulate a rate already fixed or originated by
the roads, upon complaint and after inves-
tigatiou. heavy penalty should be ex-
acted from any corporation which fails to
gard this power to establish maximum
rate as being essential to any scheme of
real reform in the matter Of railway regu-
lation. The first necessity is to secure it;
and unless 1t is granted to the commission
there is little use in touching the subject at
all
Illegal transactions often occur under the
forms of law. It has often occurred that a
shipper has been told by a traffic officer to
buy a large quantity of some commodity
and then after it has been bought an open
reduction is made in the rate to take effect
Immediately. the arrangement resulting to
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 as much
to blame any railroad in the matter of
rebates. The law should make 1t clear so
that nobody can fail to understand that
any kind of commission paid on freight
shipments, whether In this form or in the
form of fictitious damages, or OF conces-
sion, a free pass, reduced passenger rate
or payment of brokerage is Illegal. 1t is
worth while considering whether 1t would
not be wise to confer on the government
the right of civil action against the bene-
fciary of a rebate for at least twice the
NdIue Oh lNe TeDtle, lLlS Wuulu Hclp StOp
what is really blackmail. Elevator allow
ances should be stopped, for they have now
grown to such extent that they are
demoralizing and are used rebates.
The best possible regulation of rates
would, of course. be that regulation secured
by an honest agreement among the rail-
roads themselves to carry out the law. Such
general agreement would, for instance.
at once put stop to the efforts OF any one
big shipper or big railroad to 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 govern
ment to put a stop to agreements to the
detriment OF the public should. IN my judg-
ment, be accompanied by power to permit
under specified conditions and careful SUI
pervision, agreements clearly in the inter-
est Of the public. But, in my Judgment. thu
necessity for giving this further power is
by no means as great as the necessity for
giving the commission or administrative
body the other powers / have enumerated
above: and It may we'll be inadvsable to
attempt to vest this particular power in
the commission or other administrator