Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-12-06


is governmental supervision. 1t Is not
my province to indicate the exact terms
of the law which should De elidcleu'
but I call the attention of the congress
to certain existing conditions WIFI
which it is desirable to deal. III my
Judgment the most important proNlsioii
which such law should contain Is that
comforting upon some competent ad-
ministrative body the power to decide,
,,pon The case being brought before II,
whether a given rate prescribed by
,ilroad is reasonable and just, and II 1t
&c found TO be unreasonable and unjust.
then. after full investigation of the
c,n,nlaint. TO prescribe the limit of rate
beyond which it shall not be lawfui TO
eo-the maximum reasonable rate. as
it is commonly called-thiS decision 10
go into effect within reasonable time
ana to obtain from thence onward, SUBJ
iect to review by the courts. II some
times happens at present, not that
rate is too high but that d favored
shipper is given too low rate. In
such case the Commission would have
the right to fix this already established
minimum rate as the maximum; and
it would need only one or two such de-
cisions by the Commission to cure rail-
road companies of the practice of Civ
ing improper minimum rates. l call
your attention to the fact that my pro-
posal is not to give the Commission
power to initiate or originate rates
generally, but to regulate a rate all
ready fixed or originated by the roads,
upon complaint and after investigation.
A heavy penalty should be eXacted
from any corporation which fails to re-
spect an order of the Commission. I
regard this power to establish i maxi
mum 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.
Illegal transactions often occur under
the forms of law. 1t has often occurred
that shipper has been told by traffic
officer to buy large quantity of some
commodity and then after it has been
bought an open reduction is made in
the rate to take effect Immediately,
the arrangement resulting to the pro-
fit of the one shipper and the one rail-
road and to the damage of all their
competitors: for it must not be forgot
ten 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 understand that any kind of COM
mission paid on freight shipments,
whether in this form or in the form of
fictitious damages, or of a concession,
free pass, reduced passenger rate, or
payment of brokerage, is illegal. 1t is
worth while considering whether il
would not be wise to confer on the
Government the right of civil action
against the beneficiary of a rebate for
a least twice the value of the rebate;
this would help stop what is really
blackmail. Elevator allowances should
be stopped. for they have now grown to
such an extent that they are demoraliz-
ing 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 general agreement
would, for instance. at once put a stop
W lilc Cllol 10 W dlIS ollc D1S shipper
or big railroad to discriminate against
or secure advantages over some riv-
al; and such agreement would make
the railroads themselves 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 &C
companied by power to permit. I'M
der specified conditions and careful
supervision. agreements clearly in the
interest of the public. But, in my
Judgment, the necessity for giving this
further power is by no means as great
as the necessity for giving the commits
sion or administrative body the other
powers l have enumerated above; and
it may well be inadvisable to attempt
to vest this particular power in the
Commission or other administrative
body until it already possesses and is
exercising what l regard as by far the
most important of all the powers l
recommend-as indeed the vitality i'm
portant power-that to fix a given
maximum rate. which rate. after the
lapse of a reasonable time, goes into
full effect subject to review by the
courts.
! All private-car lines, industrial
roads, refrigerator charges, and the
/ like should be expressly be put under
the supervision of the Inter- state Com
merce Commission or some similar
body as far as rates, and agreements
practically affecting rates, are con-
cerned. The private-car owners and
the owners of industrial railroads are
entitled to a fair and reasonable COM
pensation on their investment but
neither private cars nor industrial rail-
roads nor spur tracks should be utilized
as devices for securing preferential
rates. rebate in icing charges, or
i'll mileage, or in a division of the rate
for refrigerating charges is Just as
pernicious as d rebate i'm any other
way. No lower rate should apply on
goods imported than actually obtains
on domestic goods from the American
seaboard to destination except in cases
where water competition is the con-
trolling influence. There should be
publicity of the accounts of common
carriers; no common carrier engaged
1T interstate business should keep any