The Birmingham age-herald., 1905-12-06


 tion of the complaint, to prescribe the limit of the rate beyond which it shall not be lawful to go-the maximum req sonable rate, as it is commonly called this decision to go into effect within reasonable time and to obtain from thence onward, 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 rate. In such case the commission would have the right to fix this already established minimum rate as the maximum; and 1t would need only one or two such decisions by the commission to cure railroad companies of the practice of giving improper mini mum rates. I call your attention to the fact that my proposal is not to give the commission power to initiate or originate rates generally, but to regulate rate already fixed or originated by the roads. upon complaint and after investigation. A heavy penalty should be exacted from any corporation which fails to respect an order of the commission. I regard this power to establish a maximum rate as be- ing essential to any scheme Of real reform in the matter of railway regulation. The first necessity Is to secure 1t; 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 traffic officer to buy a large quality or some commodity and then after It has been bought an open reduction is made Tn the rate to take effect immediately The ar rangement resulting to the proht of one shipper and the one railroad and to the damage of all their competitors; Tor It must not be forgotten that the big ship pers are at least as much to blame as 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 snip ments, whether in this form or in the form of fictitious damages, or of a con cession, free pass, reduced passenger rate. or payment of brokerage, is Illegal. If is worth while considering whether it would not be wise to confer on the gov ernment the right of civil action against the beneficiary of rebate for at least twice the value of the rebate; this would help stop what is really blackmail. Ele- yator allowances should be stopped TOT they have now grown to such an extent that they are demoralizing and are used as rebates.
 The best possible regulation of rates would. of course,- be that regulation se- cured by an honest agreement among the railroads themselves to carry out the law. Such a general agreement would, for instance, at once put stop 10 the efforts of any one big shipper or big rail road to discriminate against or secure advantages over some rival; ana such agreement would make the railroads themselves agents for enforcing the law. The power vested in the government to put a stop to agreements to the detri- ment of the public should, in my Judg- ment, be accompanied by power to per init. under specified conditions and care ful supervision, agreements cieariy III the interest of the public. But, In my judgment, the necessity for giving this further power Is by no means as great as the necessity for giving the govern sion or administrative body the other mowers I have enumerated above; and It may we'll be inadvisabe to attempt to vest this particular power in the commits sion or other administrative body until if already possesses and Is exercising what I regard as by far the most impor- tant of all the powers l recommend-as indeed the vitally important power-tnat to fix a given maximum rate, which rate after the lapse of a reasonable time, goes into full effect. subject to review by the courts.
 All private car lines, industrial roads, refrigerator charges and the like should he expressly put under the supervision of the interstate commerce commission or some similar body so far as rates, and agreements practically affecting rates are concerned. The private car owners and the owners of industrial rail- roads are entitled to fair and reason able compensation on their investment, but neither private cars nor industrial railroads nor spur tracks should be util- ized as devices for securing preferential rates. A rebate in icing charges, or in mileage ar in a division of the rate for refrigerating charges is just as pernicious as a reba te in any other way. No lower rate should apply on goods imported than actually obtains fon domestic goods from the American seaboard to destination ex- cept in cases where water competition is the controlling influence. There should be publicity of the accounts Of common carriers no common carrier engaged Tn interstate business should keep any books or memora nda other than those reported pursuant to low or regulation and these hooks or memoranda should be open to the inspection of the government. Only in this way can viola tions or evasions Of inc law be surely detected. system of examination of railroad accounts should be provided similar to that now conducted into the national banks by the hank examiners. a few f1rst-class rail- road accountants, If they had proper di- rection and proper authority to inspect books and paper, could accomplish mucn In preventing willful violations or the