The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-06-03

: AOuty Gu0 1OllOWluS SLdOC-
ment, which he dictated:
"A correct understanding of just |
what the president proposes answers
that question of itself. President Roose-
velt proposes to confer upon the inter
state commerce commission not the |
but the rate-regulating
power. The railways are entirely free |
choose, and the rates which they es-
tablish cannot be changed unless upon |
complaint and after full investigation |
1t complaint is made and the COM
mission determines after hearing of all |
parties that the rate complained of is
then and only then it |
may order the carriers to charge in
place OF the unjust rate one which is
just.
What Commission Can Do.
"The act to regulate commerce now
provides that rates shall be just and
reasonable. The commission is author
lied to inquire at the present time
whether they are just and reasonable
Its duty to inquire would be exactly
the same after the enactment of the
proposed legislation as it is now, and
the standard by which the reasonable
ness of rate is determined would be
exactly the same as it always has been,
the only difference being that the com
the just charge. .s...
Now, in the past, the commission
has frequently passed upon this claim
that rates should be made according to
distance and has invariably declined to
apply that rule when competitive con-
ditions prevailed. In the very last case
decided involving the rates upon export
traffic to Boston, New York, Philadel-
phia and Baltimore from western points,
the commission held that the rate to
the port Of export ought not to be de-
termined by distance but should be so
adjusted as to permit free competition
thru all the ports. In further conforma
ton Of this, I may cite from the opinion
Of the commission in the Denver case.
Rates to points on the Pacific coast are
in some cases lower than to Denver, the
Pacific coast rate being made to meet
water competition between the Atlantic
seaboard and the Pacific coast. Denver
insisted that inasmuch as the distance
to that city was less, the rate should be
less. In refusing to adopt this view,
the commission used the following Ian
guage:
Fallacy In Contention.
"tThe fallacy at the bottom Of this
contention lies in the assumption that
either Chicago or Denver have any ad-
vantage over New York in point Of To-
cation with respect to San Francisco,
and Denver is but 1,400 by rail, yet it
| is probable that most kinds Of merchan-
disc can be actually carried from New
cities are nearer in geographical
miles, but they are not nearer Of neces-
sity, and probably not in fact in facility
of transportation. New York is by wa
ter perhaps $4,000 miles from San Fran
cisco, and eDnver is but 1,400 by rail
yet it is probable that most kinds of
merchandise can be actually carried
from New York to San Francisco at a
less cost than from Denver to San
Francisco. If this be so, Denver in
matter Of transportation is not neces-
sarily more advantageously located than
New York, nor can Denver necessarily
by reason Of it's location alone, demand
a more favorable rate than New York
AS to Distance Tariff.
1--WE must not be understood as say
ing that cost Of transportation alone
controls. What we do say is that in
this case distance alone cannot control
stick. Commercial conditions and phys
ieal conditions and the condition Of the
carriers themselves must be consider
ed
"Few Of the many misrepresenta
tions which are being made to influence
public opinion at the present time have
less basis in fact than this claim that il
a bill Like the Esch-Townsend were tt
become a law, it would require the max
ingg;f Ct ); interstate rates upon distance
Hill and Oriental Trade.
On having his attention called to- thu
statement of President Hill Of the Grea1
Northern before the senate committee
to the effect that some requirement Of
1 the Interstate commerce commission hac
compelled his company to withdraw his
low export rates on -four from Mime
apolis to Asiatic ports, Judge Prouty
SAID:
foundation. The act to regulate com
lish the rates under which their traffic
is moved. It has been insisted in some
sections Of the country that this re
quirement did not apply to import ant
export business.
tin the spring of 1904 the commits
sion undertook an investigation for thu
purpose Of ascertaining to what extern
export and import tariffs were filed AM
observed. AS result Of that inTesti
cation, it expressed the opinion that tn
statute in it's present form required tn
publication of these schedules; but i
expressed the. further opinion that thi
Requirement might in some instance
operate with undue severity, and it sail
that it would not for the present max
any attempt to enforce this provision O
law, in order that the carriers Nigh
have an opportunity to apply to con
gress for some amendment Of the stat
: ute. Instead, therefore, of maxim;
, some requirement which has interfere,
with Mr.. Hills export rate ON flour, tn
commission has expressly refraine
from enforcing the law in that respect
in order that his operations might no
be interfered with. Does this ind
cate that government commission
would be disposed to hamper the legiti
mate operations Of our railwaysqo
:. Oriental Markets Preserved.
: Judge Prouty not only says that tn
administration policy will not mean tn
{ adoption of the mileage basis, but a
to the oriental -four markets, he say
!. that the commission in reality ha
! winked at violation of the law in O
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