The Saint Paul globe., 1905-01-23
PICKS FLAWS IN PLAN
TO REGULATE RATES
James B. Dill Points Out DIFF.
ficulty of Presidents
Scheme

-. iiicSSelSe, lnat the power of the
iarged,is proceeding with unahated in
tefeSt, almost every day bringing its
contribution from some railway execy,-
i've or other prominent man familiar
with the subject of American railway
administrative policies. James r. mn
.ne Weii known corporation fawyer of
NeW view ork, was asked yesterday: ..If
.Ie interstate commerce commission
optal.s u. the power 1t asks, what will be
general public ?" sA'~
Mr.. Dill answered:
While the public utteranees of MEM
pers OF the interstate commerce com
MISSION attempt to minimize the extent
OF the grant of power which that body
Is seeking, 1t can fairly be said that
ene commission is desirous of obtaining
from congress authority to fix railroad
rates in certain cases. The rates now
IN IN erect are so entirely interdependent.
me one on the other, that it is ineyf-
table that if any rates shall be fixed als
otners will also be thereby affected. "a
Ioiiows that clothing the commissioG
Win power to fix any rates would b
e,l equlvaient to giving 1t control over ar
Inc liking of rates of TRANSPORTATION in
a legislative function The commissios.
is an administrative, or executive body.
ana already has certain quasi judicial
functions. To add legislative powers
TO the executive and the quasi judicial
powers which it already possesses
would be to vest in the commission the
tnree functions which the constitution
mas Sharply differentiated in prescrib-
ls T4s,t eae form or government Of the
Ohlteu states; and it is a question
open to argument whether or not the
leglsiatlve function, any more than the
IulI Judicial function, could constitu
tlonaHy be conferred upon the inter
state commerce commission. 1t NAV
not be amiss to recall the warning Of
Washington's farewell address:
:, 1t is important, likewise, that the
habits OF thinking in a free country
should inspire caution in those intrust-
ed with its administration. to confine
themselves within. their respective con-
Stitutlonal spheres, avoiding, in the
exercise of the powers of one depart.
ment, to encroach upon another. The
spirit OF encroachment tends to con-
solidate the powers of all the depart
ments in one, and thus to create. what
ever the form of government. a real
deSpotism.'
should it be deemed possible, how.
ever, under the constitution to give to
the present interstate commerce COM
mission or to similar body the legis-
iative power of fixing rates of trans
portation, congress would apparently
still be confronted with the difficulty
presented by article /, section 8. clauss
of the constitution:
NO preference shall be given by
any regulation of commerce or revenue
to the ports of one state over those of
another
1t is fnconeeivable that any body of
men, however constituted, could fix
rates of transportation between points
IN the United States Gt being borne in
mind that power to fix any rates in
wolves control of all) without giving
preference to the ports of one state over
those of another.
Vast as are the powers of the gov
ernment of the United States, they can
be exercised only within its territorial
lln1fts. The ocean is free to the ships
OF all nations, and commerce. among
the states is now so intimately related
to commerce with foreign nations that
even II our government could constitu-
donally fix the rates of transportation
among the states, it cannot in any way
affect the rates of transportation on
the ocean. Moreover, there is for the
products of the United States and for
the transportation of articles imported
into it, competition among ocean-go-
ing vessels of various regular lines
trading to the same ports and between
to which must be added the competi-
ton between various ports and various
markets in foreign countries. All this
is further complicated by the compete
ton in those foreign markets of like
articles coming from and going to oth-
er ports than those of the United
States. AS, for instance, grain from
Russia, the Danube, the Baltic, India,
Australia, Canada and ArgentinaS
cotton from India from
perhaps. in the future. from other parts
of Africa; and so on of each and ever1
article in the raw and in varying
stages of its manufacture. Moreover
the length of the ocean voyage, whica
to Europe. from any Atlantic port OF
the United States, cannot be less than
$500 to 5000 miles, and from our gulf
ports and Pacific ports is much greater,
exceeds by many times the length Of
the average haul within the United
States on all articles exported or i'm
ported.
1.-THE price OF wheat in foreign ports
is affected also by the available supply
in them of other forms of human food
which may be and are increasingly
used as substitutes for wheat, as rye,
corn, and latterly rice. The price Of
wheat on the farm in Dakota, for in
stance, is the Liverpool price, or the
Bremen price, or the Hamburg price,
and SO forth, through a long list, less
the cost of transportation to those for
eign markets. OF that, the cost of get
ting the wheat from the farm to the
railroad station-the wagon transpor-
tation-is large factor, possibly equal
to the railroad freight to Chicago, a
central market (port). This the gov
ernment does not propose to and cam
not control The next element is the
railroad freight to shipping port In
one of the United States; this, and this
only if that port is in another state,
it is now proposed to endeavor to fix
by law The last element is the freight
by ocean vessels over much greater
distance, which our government can in
no measure affect, much less control.
regulate, fix or reduce. Nor can it pre-
vent railroad companies from favoring
particular lines of ocean steamers or
tramp ships especially chartered by
them.
Hence il follows that until the fed
eral government shall effectually con-
troll all ocean freight charges and all
prices in foreign markets, it must or
necessity by fixing rates Of freight by
rail among the states prefer the ports
of one over those of another"