The Montgomery advertiser., 1905-04-21
DISCUSSION BY FUTILE B. and M. President Before Senate Committed. EMINENT DOMAIN RIGHT Conditions as Applied to Pub
 lie Utilities. Governments General Police Power ts Prevent 0pprcssien-
 of Rebates and Diserimi-
 nations Denied.

Washington. April 2o.--Lucius Tut tie. President of the Boston and Maine Railroad. was heard by the Senate Committee on Interstate Commerce to- day. He denied that the Government had any authority over railroads be- cause of the rights the Government has under eminent domain and the general police power of the Government to pre- vent oppression. There was no stfff- necked opposition among railroad men to fair regulation of railroads. Mr, Futile discussed the right and neces- sity of eminent domain for public utii ities.
 Mir. Futile said there was not the least doubt about the right of Con- gress to regulate everything pertaining to interstate commerce. subject only to constitutional limitations. He declared that the only valuable property right of a railway Is the right to make It's rates. The road could not remove it's property or abandon its operation and it must therefore be enabled to make a rate which will give 1t fair return on it's investment.
 Mir. Futile said there were practica1- ly three systems in New England. The Boston and Maine dominates the north- ern half of New England. Men in that region doing business must depend on this road. and yet he said in twelve years not single complaint had been made to the Interstate Commerce Com mission. The same was substantially true of the New York. New Haven and Hartford and the Boston and Albany. Stability and uniform rates were nec- essary rates rather than low rates. He asserted that no five men could fix rates for the country. Messrs. Gould, Morgan, Hartman and Vanderbilt could not either singiy or together fix rates on their lines any more than blacksmith could repair a watch. Boards of directors did not discuss or fix rates. This was left to expert traffic managers.
 Talks of Rates.
 Mir. Futile discussed at some length the reasons why there were low ratea on certain commodities: also the effect of water rates on railroad rates from North Atlantic ports to Southern points and said that the railroad rates were lower from Chicago, Cincinnati and other points in the West because the railroads must meet the water rates. At times railroads, he said, must carry merchandise at a positive loss in order to keep the business of the country moving.
 Discussing the long and short haul proposition. Mir Futile said the higher charges to intermediate points were subject to natural laws and these could not be changed by legislation. He be- 1ieved that a large amount of the transcontlnental business was carried at loss. On the Pacific coast there was competition with Germany and other European countries which car ried goods by water.
 He contended that if Congress at- tempted to say that there should not be charged a higher rate for a short haul than for long haul. 1t would de- strov business or bankrupt the rail- roads. Mir. Futile said that Congress, with absolute power over the National banks. did not attempt to fix the rates of interest. If Congress should provide that National banks should not charge more than per cent he believed most of them would liquidate. The reason why there was a demand for the regu- lation of railroad rates. he said was because the roads could not get away and could not remove their property.
 Mir. Futile said he has one complaint to make against the interstate com naerce commission. It went to law too often and did not settle enough cases by negotiation. Instead of 90 per cent. of the cases being thus settled there should be 99 per cent.
 Mir Futile said the commission should be relieved of much of it's pres ent duty It should investigate cases and turn them over to the department of justice. The commission should not be a quasi court. but a buffer between the people and the railroads.
 In reply to Senator Cullom. Mir. Tut tie said tho rebates and unjust discrim- nations were things of the past. Ha could see no need for changes in the present law save to make the inter- state commerce commission an fnvesti- gatinE and prosecuting body The az itation that has been going on by the people was due to the constant reitera- tion of the interstate commerce com mission that 1t should be clothed with power to fix rates. It also was due to the belief that rebates still were grant ed which he did not believe.
 "A railroad president" remarked Senator Deliver. stated in this city not long ago that the railway business of the country was honeycombed with rebates and discriminations."
 ''The man who made the statement. said MT. Futile, might have had per- sonaI knowledge of these things. His statement might have been in the na- ture of a confession"
 MT. Futile said that the competing shippers could find out if rebates were being granted. He thought that if rail- roads were giving rebates they could their books so that they could not be detected. He did not think the interstate commerce commission had made any strong effort to enforce the Elkins law against re9htes-