The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-12
PRESIDENTS PLAN
HAS SOUND BASIS
Roosevelt Would Not Have Cen
eral Rate Making Power Con-
ferred on Government.
BY w. w. Jermane.


Washington, May r. Since April II,
when it began it's railroad hearings, the
senate committee on interstate COM
merce, thru the majority Of the wit
nesses appearing before it, has been try
ing to hammer into the public mind
that what the president is after in, his
effort to secure legislation for the con-
troll of railway rates is the general rate
making. power; in short, the appoint
authority to fix all rates in the country
at it's pleasure.
The statement has been made so fire.
quently that large part of the public
has cause to believe it, and much Of
the opposition to the presidents plan
it is fair to say, has been. predicated
on this view, which is now found to
be false.
/ Taft Statement Authoritative.
An authoritative statement has been
made by Secretary Taft to the effect
that the president wants no such au-
thorlty lodged with federal commits
sion, and that such authority would in
deed be destructive Of commerce and in
dustry, as the railway managers have
BEEN charging: The president wants a
to fix any rate that has been complained
| Of, and not to fix rates Unfortunately
I in advance of complaints.
In other words, the federal commits
sion is to confine it's activities to liti-
gated cases.
It now remains to be seen whether
this explanation Of the president 8 posi-
tior will alter the character of the tes-
timony which the senate committee is
hearing or affect public sentiment.
What the Shippers Ask.
E.. P. Bacon Of Milwaukee, repre-,
senting the shippers in demand TO,
4 government rate regulation, said before
!, the senate committee the other day that
the shippers did not want the govern
ment to have the general rate-makine
power, and in his opinion he agrees with
the latest Interpretation Of the presi
dents position.
The railroads admit that any powe,
over part Of the rate question would
involve power over the whole Of it, an(
that II the commission were giver
power as advocated by the president
that power would in few years amour
to the government control of all rates
for, the railroad men argue, the com
mission would establish a few basi
rates to which the country as a Who'll
would have to conform and the situa
ton in America would in time be wha
is in Germany and France. sasss
In Germany ana France.
II The strongest argument against civ
: ing the government the power to Fl
rates is found in the experience Of Gel
l many and France, where that has bee
b. the rule for many years. In German
: nearly all the railroad mileage is owne
by the government. In France the mos
3 Of the mileage is in private ownership
= but the government fixes the rates.
:. The custom was established in &C.
4 many in 1878, at the suggestion Of Bi
9 marck, and 1t will not be abandoned
y for the revenues from railways defray
!, considerable portion Of the governme1
r expenses and abandonment wou]
mean an increase Of taxation, to whic
the people would not consent.
II In France government control has
5. crippled railroad enterprise that n
r, merous appropriations have been mao
q from year to year, out Of the nation