The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1905-12-09

PiotCSt sdtIS IIHDTOp
erly radical or hasty action. The first
thing to do is to deal with the great
corporations engaged in the business
OF interstate transportation. AS / said
In my message of December 6 last, the
immediate and most pressing need, 30
far as legislation is concerned. IL the
enactment into law of some scheme to
secure to the agents of the govern
ment such supervision and regulation
OF the rates charged by the railroads
OF the country engaged in interstate
traffic as shall summarily and effec-
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 and
self-restraint; but it should exist, so
that it can be effectively exercised
when the need arises.
The first consideration to be kept
in mind is that the power should be
affirmative ood should be given to
some administrative body treated by
the congress. If given to the present
interstate commission or to
a reorganized interstate commerce
commission. such commission should
be made uneQuivocally administrative.
1 do not believe in the government in
terfering with private business more
than is necessary. l do not believe in
the government undertaking any work
which can with propriety be left in
private hands. But neither do l be-
lieVe in the government tiinching from
overseeing any work when 1t becomes
evident that abuses are sure to OBJ
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
call the attention of the congress to
certain existing conditions with which
it is desirable to deal. In my judg-
ment the most important provision
which such law should contain is that
comforting upon some competent ad-
miniStrative body the power to decide,
upon the case being brought before 1t.
whether a given rate prescribed by a
railroad is reasonable and just. and
if it is found to be unreasonable and
unjust. then. after full investigation
of the complaint, to prescribe the limit
OF rate beyond which it shall not be
lawful to gO-the maximum reason
able rate. as it is commonly called
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 that n rate is too high
but that a favored shipper is given too
low a rate. In such case the commits
sion would have the right to fix this
already established minimum rate as
the maximum; 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 to
the fact that my proposal is not to
give the commission power to initiate
or originate rates generally. but to
regulate a rate already fixed or origi-
nntn1 hi, thn rnnA1 imam Nnn0nlQlnf
and after investigation. A heavy
penalty should be exacted from any
corporation which fails to respect an
order of the commission. / regard this
power to establish a maximum rate.
as being essential to any scheme OF
real reform in the matter OF railway
regulation. The first necessity is to
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 un-
der the forms of law. 1t has often oc-
Cured that a shipper has been told
by a traffic officer to buy 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 ship
per and the one railroad and to the
of all their competitors; for
it must not be forgotten that the big
shippers are at least as much to
blame as any railroad in the matter
of rebates. The law should make it
clear so that nobody can fail to under
that any kind of commission
paid on freight shipments. whether in
this form or in the form of fictitious
damages. or Of a concession. a free
pass. reduced passenger rate. or pay
ment of brokerage. is illegal. 1t is
worth while considering whether it
would not be. wise to confer OIL the |
government the right of civil action
against the beneficiary of a rebate for
at least twice the value of the rebate;
this would help stop what is really
blackmaiL. Elevator. allowances hould
stopped. for they nave 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 to
carry out the law. Such a general
agreement would. for instance. at once
put a stop to. the efforts of any one
big shipper or big railroad to dis
criminate against or secure advan-
tages over some rival; and such agree
merit. would make the railroads them
agents for enforcing the law.
power vested in the government
to put a Stop 4to agreements to the
detriment of the public should. In my
Judgment. be accompanied by power to
under specified conditions and
supervision, agreements clear
in the interest Of the public. But,
in my Judgment. the necessity FOR
this further power is by no
as great as the necessity for
giving the commission or administra-
tive body the other powers L have
enumerated above; and it may well
be inadvisable. to attempt to vest this
rticular power in the commission or
1tber. administrative body until it al
-eady possesses and is exercising what
[ regard as by far the most important
ali the powers I accommodates n
the vitality important power
to fix a given maximum rate,
which rate. after the lapse of a reason
,ble time. goes into full effect, subject
10 review by the courts.
All private car lines, industrial ROADS,
refrigerator charges, and the like should
~ expressly put under the supervision
r. the interstate commission
" some similar body so far as rates and
,oreements practically affecting rates are
.oncerned. The private car owners and
he owners of industrial railroads are en-
tiled to a fair and reasonable compensa-
- .ha;r Investment hut neither pri-