The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-19
MORAWFTz DECLARES
LONG HAUL IN DANGER
Says Governmental Control of
Rates Would Wreck Trans.
continental Railroads
Globe Special washington Service,

1417 G Street
WASHINGTON. April 1s,Ssenator
Clapp was present and took an active part
in the hearings today of the senate COM
mittee on interstate commerce. He made
1t point to bring out by a series of
questions put TO the witness. Mr.. Mora
wetz. the fact that there is no constitu
tional objection TO delegation OF rate max
ing or legislative authority by congress TO
a commission.
Senator Clapp made evident his belief
that the courts could make a maximum
and minimum Limitation on rates, but
that within the two extremes of extortion
and confiscation, a commission might die
tate future rates
Mr.. Morawetz. who was cited as an au-
thority on constitutional and corporation
law, expressed the opinion that the ninth
clause of the first section of the federal
constitution. referring TO Determinations
between ports. does not prohibit a rea-
sonable regulation of rates by government
authority. Walter L. Clark.
WASHINGTON. April IS-Victor
MorawetZ of New York opened the hear
ing before the senate committee on in
teTstate commerce today He is chair
man of the executive committee and gem
eral counsel of the Santa Fe. He made
a statement regarding the mileage, stock.
said II was a fair estimate that 100000
persons would be interested in any legis-
lation affecting the road
Speaking OF the railways in general he
said they had some difficulty in keeping
up their betterments and improvements.
III IL was attempted to adjust railway
rates In times of prosperity and large
business on a basis OF earnings. what
would happen he asked, lin bad times?
There were three evils complained of.
ne said. upon which the demand was
made for legislation to fix rates; first
that railroad rates were excessive: sec
ond, that there were discrimna tons
against shippers; third, that there were
determinations against localities
He insisted thai -ailrn16 fac
not excessive. Under the common law
the carriers were prohibited from making
unreasonable rates and also We're pro-
hibited from making unjust discrimina-
tons. Congress had no constitutional
right TO fix rate which would not give
the shippers reasonable return, or would
railroad.
Taking up the Esch-Townsend bill,
Mr.: Morawetz said that the language re-
lating to the fixing of rates by the COM
mission and for review of such rates by
a court was subject to questionable con-
struction and indefinite as to the mean
ing and should be carefully considered.
Existing Law Sufficient
Congress, he said could prescribe GEN
eral rules for the regulation of inter
commission to determine prima facie
what rates are unreasonably high. sub
1ect to review by court. In his opinion
congress could not delegate power upon
the commission TO fix arbitrary rates
without prescribing regulations and rules
governing its acts. Congress could not
state commerce commission. Congress
could not impose on courts legislative
functions. Replying TO questions. Mr..
MorawetZ said that congress could not
authorize courts to fix rates. 1t could
confer upon the courts the power to de-
termlne If rate was excessively high or
If rate was confiscatorily low
Mr.. Morawetz said that the court in
determining whether rate was too
high could be required to fix a maximum
rate that could have been lawfully i'm
posed, but could not fix the rate for the
future. but in reply to a question by Mr.
Dolliver he said that congress could pro
vide that the rate which the court found
effect NO.
Congress could fix what should be
maximum and minimum rates and pos
sion. The grant of discretion as to
power would clothe the commission with
practical autocratic authority and place
vast wealth.
Mr.. MoTawetz spoke against a perma-
nent organization because IL was provided
s sl,a. no more IMAM three should be Of the
same political power. 1t might provide
that the commission could be sectional
and IL might discriminate against north
ern cities or other points.
In discussion the provision of the con-
stltutlon that no preference should be
gwen Dy any regulation of commerce or
noIh 10 the advantage of the interests
OF one state over those of another Mr.
MofaweZ said that il discrimination in
fixing rates was incidental and not direct
there would be no violation of the con-
stitution.
In the course of his remarks Mr.. Mora
wetz said he thought the interstate com
merce act was very useful. The commits
sion has devoted too much of its time
To hearing and writing opinions which il
cannot enforce.
The commission. when IL believed that
any provision of the law is being violated
should institute a prosecution
Mr.. MorawetZ doubted the advisabilitv
Of establishing a special court for rail