The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-05
RAILROAD RATE LAW EVILS.
PRESIDENT UILLCON or ID. &. n,
CORRECTS SOME ERRORS.
Denies That the Interstate Commerce
Commission Ever Had tncont reted
2 Power TO Control Hatrs-Reai Need
r OF the Moment IL More Information

Commission Ever Had tncont eat ed
Power 10 Control Hatrs-Reai Need
T. OF the Moment Is More Information
David Wilcox, president Of tho Delaware
and Hudson company. who prepared
Jointly with Samuel Spencer the brief for
the railways on the rate making question.
has given out tho following statement:
II wa, reported N the newspapers this
mornini that Spe ,ker Cannon and Mr..
Payne, Tho Republican leader stated yes
terday at the Republican caucus with
reference 10 railway rates, that the pending
bill would not provide for legislative ac-
ton additional to what was contained in
the original Interstate Commerce act which
had stood for ten years at the end Of which
time the roads had raised the question Of
the legality of the enforcement Of the deci-
sions of the commission as to IN tes. and that
the courts had only then sustained the
contention that there was no such power
vested in the commission in other words
that the law now proposed was in effect for
ten years and had operated 20 the satisfac-
ton of the railroads.
If these statements are correctly re-
ported, they are merely n REPETITION Of an
erroneous view which has been assidu-
ously prop1Rated. but which has no foun-
dation Whatever.
In 1887 the commission itself said that
its power as 70 rates was merely 70 deter
3 mine whether those which the roads inn
posed were for any reason in conflict
with the statute and this language was
later cited by the Supreme Court in the
maximum rate case as showing that the
commission did not at first deem itself
10 be possessed Of rate making power.
The powers Of the commission were defined
by the Circuit Court. through Justice Jack
son, in 1850 and 1890: and the latter case
was affirmed by the Supreme Court Of the
United States in 1892. Judge Jackson's
language clearly defined the power Of the
w,1t, AoI tln hat
making rates for the future was within its
authority His language was later quoted
BY the Supreme Court "A having that effect.
Nevertheless the commission in 1894
attempted TO make rates on an extensive
scale covering large branches of traffic
between New York city and Southern
points. and the railroads declined to recog-
ni2e this action as within its powers. There
upon the commission brought SUIT to enforce
-its orders ard the statute was construed
by the Supreme Court on March 30, 1905.
and on March ~. 1897, as not conferring
the rate making power
1t is. therefore erroneous 10 say that the
power was ever effectively exercised or was
ever acquesoed in
As statutes in existence for many years
have already given the commission ample
power TO deal with rebates and other illegal
determinations and in view of the fact that
this power has never been fully exercised
by the commission, there seems TO he no
reason why further power should be asked
for or granted 10 the commission. Further
more. the commission has repeatedly stated
that rates are seldom or never unreasonable
In themselves. Yet, with the natural de-
sire of a governmental body to magnify
its Importance by extending its functions,
the commission now seeks TO secure power
over rates which IL has steadily defended as
reasonable.
Such an encroachment In the business Of
large class in the community is absolutely
contrary to all American traditions In
this country magnificent results have been
/ obtained by the result OF individual iuitla-
tive and this attempt TO give absolute con-
troll over industrial matters to public Off
Gals marks a new departure In the relations
between the Government and the people.
The grant of such power 10 the commission
will inevitably have disastrous effects upon
general business: since every manufacturer
and shipper will feel uncertain as to the
possible changes in rates: every investor
will have doubts as to the ability OF the
roads 10 maintain their earnings and every
manager and employee of the railways will
have fear Of changes in the conditions of
his employment.
The present agitation. which is supported
by probably not more than per cent. Of
the shippers of the country, is apparently
based on nothing more definite than n
general wish to secure lower rates, on the
assumption that regulation means reduc-
ton. Whether there is any real need Of
lower rates seems nj least doubtful. until
q mora careful study OF the facts has been
rnAde.
The CRYING need Of the moment from the
point Of view Of eve V Interested concern, IL
accurate informa'il.i az TO the validity Of
the vague complaints about rates. BY
all means let us know what evils exist be-
fore we prescribe a remedy. II Congress
eonal committees devote the summer 10 n
thoroughgoing examination OF railway
rates we might then have n proper basis
for deciding whether the power to fix rates
should be lodged in the hands of the COM
mission. Lacking such information. The
grant Of such power s a leap in the dark