The Tupelo journal., 1905-12-08

ScCulS W ttS d6cHlS VI thc 6CFChh~
ment such supervision and regulation
Of the rates charged by the railroads
of the country engaged in interstate
traf1c as shall summarily and efec-
lively prevent the imposition of unjust
or unreasonable rates. 1t must include
putting a complete stop to rebates In
every shape and form. This power to
regulate rates. like all similar powers
over the business world. should be ex-
ercised with moderation. caution n
self-restraint; but 1t should exist. so
that 1T can be effectively exercised
when the need arises.
The first consideration to be kept
in mind is that the power should be
affirmative md should be given to
some administrative body created by
the congress. If given to the present
interstate m commission or to
a r~eorganized interstate commerce
commission, such commission should
be made unequivocally administrative.
/ do not believe in the government In
terfering with private business more
than is necessary. l do not beieve In
the government undertaking any work
which can with propriety be left In
private hands. But neither do l be-
lieve in the government finching from
overseeing any work when IL becomes
widen that abuses are sure to op-
tain therein unless there Is govern
mental supervision. 1t is not my prov
ince to Indicate the exact terms OF the
law which should be enacted; but I
call the attention of the TO
certain existing conditions with which
it is desirable to deal. In my Juog-
ment the most important provision
which such law should contain Is that
comforting upon some competent al
ministrative body the power to decide,
upon the case being brought before IL,
prLAthnr a iyynn ratio nrpSCrlDeO OY u
railroad is reasonable and just, ana
if it is found to be unreasonable ana
unjust, then, after full Investigator
Of the complaint. to prescribe the limit
of rate beyond which 1T shall not De
lawful to GOETHE maximum reason
able rate, as 1T Is commonly caileo-
| this decision to go into effect WITHIN a
reasonable time and to obtain from
| thence onward, subject to review by
the courts. 1t sometimes happens at
| present, not hat a rate Is too hlgn
but that a favored shipper is given TOO
low a rate. In such case the commls-
sion would have the right to fix this
already established minimum rate as
the and it would need only
one or two such decisions by the com
| mission to cure railroad companies OF
the practice of giving improper mini
mum rates. I call your attention 10
the fact that my proposal Is not 10
give the commission power to lnitlate
or originate rates generally, but 10
| regulate a raNe already fixed or orlgl-
mated 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. l regard TINS
| power to establish a maximum rate,
as being essential to any scheme OF
real reform in the matter OF railway
NJ Gr.< pnoAocttV 10 70
| secure it; and unless it is granted TO
the commission there is little use IN
touching the subject at all.
Rebates Really Blackmail.
Illegal transactions often occur I'M
der the forms of law. 1t has often oc-
Cured that a shipper has been told
by a traffic officer to u a large
quantity of some commodity and then
| after it has been bought an open re-
duction is made in the rate to take
effect Immediately. the arrangement
resulting to the profit of the one snip
| per and the one railroad and to the
damage of all their competitors; Tor
it must not de forgotten that the big
shippers 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 under
| stand that any kind of commission
paid on freight shipments, whether in
this form or in the form OF fctltlous
| damages. or of a concession, a Tree
pass. reduced passenger rate. or pay
ment 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 beneficiary of a rebate Tor
at least twice the value OF the rebate;
this would help stop what is really
| blackrnail. Elevator allowances should
be stopped. for they have now grown
to such an extent that they are de-
moralizing and are used as rebates.
The best possible regulation of rates
would. of course, be that regulation
secured by an honest agreement
| among the railroads themselves 10
carry out the law. Such a general
agreement would for instance. at once
put a stop to the efforts or any one
big shipper or big railroad TO us
criminate against or secure advan-
tages over some rival; and such agree
ment would make the railroads them
selves agents for enforcing the law.
The power vested in the government
to put a stop to agreements TO the
detriment of the public should. IN my
Judgment. be accompanied by power 10
| permit. under specl1ed CONDITIONS anu
careful supervision. agreements clear
lv in the interest of the public. But.
in nv Judgment. the necessity Tor
Giving this further power is by no
| means as great as the necessity Tor
| giving the commission or admlnlstra-
tive body the other powers L nave
enumerated above; and 1t may Wen
be inadvisable to attempt to vest TINS
particular power in the commission or
other administrative body until 1t al
readv Possesses and is exercising what
T regard as by far the most important
| of all the powers l recommenu-aS IN
deed the vitality important power
that to fly a given maximum rate
which rate. after the lapse of a reason
| able time, goes into full erect SUBJECT
TO review by the courts.
All private car lines, industrial roads,
rafr,eerator charges, and the ike snoulo
he expressly put under the supervision
of the Interstate commission
or some similar body so far as rates ana
agreements practically affecting rates are
Concerned. The private car owners and
40 owners of Industrial railroads are en-
titled to a fair and reasonable compensa-
ton On their investment, but neither pri-
yate cars nor industrial railroads nor spur
tracks should be utilized as devices for
sac,ring preferential rates. A rebate in
icing charges, or in mileage. or in a divi-
| sion of the rate for refrigerating charges
10 inst as pernicious as a rebate in any
ntber wav No lower rate should apply
on goods imported than actually obtains
on domestic goods from the American
seahoard to destination except in cases
There water competition is the controll-
ING influence. There should be publicity
of the accounts of common carriers; no
common carrier engaged in interstate
business should keep any books or MEM
oranoa other than those reported pur-
suant to law or regulation, and these
books or memoranda should be ope to
the inspection of the government. Only
In this way can violations or evasions of
the law be surely detected. A system of