The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-05

nous acC1On IN securing IL. snoulu
emphatically protest against improperly
to do is to deal with the great corpora
| tions engaged in the business of inter
state transportation. AS I said in my
message Of Dec. last, the immediate
and most pressing need, 50 far as leg1s-
lation 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 railroads Of the country
engaged in interstate traffic as shall
/ summarily and effectively prevent the
imposition of unjust or unreasonable
rates. It must include putting a com
plete stop to- rebates in every shape and
4 form. This power to regulate rates, like
all similar powers oyer the business
world, should be exercised with mOdera-
ton, caution, and self-restraint; but it
should exist, SO that it can be effectively
exercised when the need arises.
The first consideration to be kept IN
mind is that the power should be
affirmative and should be given to some
administrative body created by the con
gress. If given to the present inter
reorganized interstate commerce COM
mission, such commission should be
made unequivocally administrative, l
do not believe in the government inter-
fering with private business more than
is necessary. Il do not believe in the
government undertaking any work
4 which can with proprietv be left in prl-
vate hands. But neither do / believe in
the government flinching from oversee
ing any work when it becomes evident
that abuses are sure to obtain therein
unless there is governmental super
vision. It is not my province to lndl-
} cate the exact terms of the law which
) should be enacted; but [ call the atten-
| ton of the congress to certain existing
conditions with which it is desirable. to
deal. In my, Judgment the, most i'm;
portant provision which such law should
contain is that comforting upon some
power to decide, upon the case being
, brought before it, whether a given rate
prescribed by railroad is reasonable
and lust, and if it is found to be un
, reasonable and unjust, then, after full
, investigation of the complaint, to pre-
, scribe the limit Of rate beyond which
! it shall not be lawful to go-the max
e imum reasonable rate, as it is commonly
called-this decision to go into effec1
v from thence onward, subject to review
: by the courts. It sometimes happen!
e at present, not that a rate is too higl
but that favored shipper is given to-
s low rate. In such case the commission
;. would have the right to fix this alread,
" established minimum rate as the max
t imum; and it would need only one o
n two such decisions by. the commission t.
j. cure railroad companies of the practlc
+ of giving improper minimum rates.
n call your attention to the fact that m.
e proposal is not to give the commissio:
n power to initiate or originate rates gen
a. orally, but to regulate rate alread
J. fixed OF originated by the roads, upo
e complaint and after investigation:
i heavy penalty should be exacted fro1
l. any corporation which fails to respec
d an order of the commission. I regar
l. this power to establish maximum rat
II as being essential to any scheme of res
l. reform in the matter Of railway regl
e lation. The first necessity is to secuI
|. it; and unless it is granted to the con
d mission there is little use in touchin
20 the subject at all. -,
IS Rebate Prevention.
W Illegal transactions often occur undt
le the forms of law. It has often occurre
IN that shipper has been told by a trait
IN officer to buy a large quantity OF son
10 commodity and then after it has bee
re bought an open reduction is made in tt
at rate to take effect Immediately, the a
u rangement resulting to the profit Of tt
III one shipper and the one railroad an
T. to the damage of all their competitor
er big shippers are at least as much
al blame as any railroad in the matter {
oil rebates The. law should make it cle'
De so that nobody can fail to understa1
ly that any kind Of commission paid {
ed freight shipments, whether in this for
a. or in the form of fictitious damages,
n. Of a concession, free pass, reduce
o4o' ont az a
is illegal. It is worth while conside
N. ing whether it would not be wise
n: confer on the government the. right
o. civil action against the beneficiary
e,, a rebate for at least twice the val
w. of the rebate; this would help stop VIII
~ is really blackmail. Elevator allo'
in ances should be stopped, for they ha'
M now grown to such an extent that tn
"a are demoralizing and are used
,;s rebates. .~.5
nd The best possible regulation Ct rat
to would, of course, be that regularly
". secured by an honest agreement amor
he the railroads themselves to carry o
We We the law. Such general agreeme
H. would, for instance, at once put a st.
a to the efforts Of any one big shipper
,rf big railroad to discriminate against
,rt such agreement would make the ra
at roads themselves agents for enforcl
,ot the law. The power vested in the &c
to eminent to put a stop to agreements
~, the detriment of the public should,
W. my Judgment, be accompanied by pow
Is to permit, under specified conditlo
nj and careful supervision. agreeme1
&c. clearly in the interest Of the publ
co. But, in my Judgment, the necessity
in giving this further power is by
10 means as great as the necessity for e
,nr ING the, commission or admlnlstratl
he body the other powers [ have enum
ion ated above; and it may we'll be lns
,en visable to attempt to vest this part
,as ular power in the commission or otl
c11. administrative body until it already p
at sesses and is exercising what regard
no. By far the most important OF all
ME powers I recommends indeed I
If vitality important power-that to hS
CIV given maximum rate, which rate, at
isb the lapse Of a reasonable time, e
not into full effect, subject to review
ge- the courts. @~
to Private Car Line Control.
re- All private car lines, industrial roa
ion refrigerator charges and the like sho
ub- be expressly put under the supervls
md Of the interstate commerce commlss
SEES or some similar body so far as rates :
ion agreements practically affecting RAJ
,er- are concerned The private car own
the and the owners Of Industrial railro
en- are entitled to a fair and reasona
,ro- compensation on their investment,
!, it neither private cars nor industrial +
al roa ds nor snur tracks should be utiil