The Montgomery advertiser., 1905-04-19
COMMITTEE
 IN SESSION Senators DelvingIntOInter- state Commerce. MOROWITZ OPENS HEARING Interesting Statements by Prominent RailrOader. Elaborate Review of MT. Morgan Print ed for Use of Body-what the AIabamian Thinks Concern
 in Situation.

Washington, April 1S.-victor Nor owitz of New York, opened the hear ing before the Senate Committee on Interstate Commerce today. He Is chairman of the Executive Committee and general counsel of the Atchison. Topeka and Santa Fe Railroad. He made a statement regarding the mile- age, stock, bonds and employees of the railroad. He said it was fair esti- mate that 450,000 persons would be interested in any legislation affecting the road
 Speaking of the railways in general he said they had some difficulty in keeping up their betterments and im- provements. If 1t was attempted to adjust railway rates in times of pros- perity and large business on a basis of earnings what would happen, he asked, in bad times? He insisted that railroad rates were not excessive. Un- der the common law the carriers were prohibited from making unjust dis criminations. Congress had no consti- tutional right to fix a rate which would not give the shipper a reasonable re- turn or would be confiscatory of the property of the railroad. Taking up the Esch-Townsend bill, MT. Morowitz said that the language relating to the fixing of rates by the commission and for review of such rates by court was subject to questionable construction and indefinite as to the meaning and should be carefully considered.
 In his opinion Congress could not delegate power upon the commission to fix arbitrary rates without prescribing regulations and rules governing it's acts. Replying to questions MT. Nor owitz said that Congress could not au- thorize courts to fix rates. It could confer upon the courts the power to determine if a rate was excessively high or If a rate was confiscatorily low.
 AutOcratic Powers.
 MT. Morowitz said that the court in determining whether rate was too high could be required to fix a maxi mum rate that could have been law fully imposed but could not fix the rate for the future, but in reply to a quss- tion by MT. Deliver, he said that Con gress could provide that the rate which the court found was reasonable there after shoulq go into effect. Congress could fix what should be maximum and minimum rates and possibly could del- egate this power to a commission. The grant of discretionary power to fix rates and adjust the relative rates of different localities would vest the com mission with practically autocratic power and place 1t in practical control | of property of vast value.
 MT. Morowitz spoke of the Commis- | sion as a political organization be- | cause it was provided that not more | than three should be of the same po- | litical party. It might occur that the | Commission would be sectional and | that it would discriminate in favor cf | Northern cities against Southern cit | ies or other points.
 In discussing the provision of the | Constitution that no preference shall | be given by any regulation of com merce or revenue to the ports Of any | State over those of another. Mir. Moro witz said that if the discrimination in fixing rates was incidental and not di- rect, there would be no violation of the Constitution. In the course of his re- marks MT. Morowitz said he did not agree with those who thought the In- terstate Commerce Commission was useless. He thought the interstate commerce act was useful. The Com mission had devoted too much of its time to hearing and writing opinions which 1t cannot enforce.
 The Commission. when 1t believed that any provision of the law is being violated should institute a prose cu- ton.
 The EIkIns Act.
 Why don't they bring suits under the Elkins act?" asked Mir. HorowItz.
 T understand" remarked Senator Deliver. that an action is soon to be
 
 lation of the law"
 T know nothing about 1t more than l have read in the newspapers" re- piled MT. MorowitZ. He expressed A willingness to answer any questions regarding the Atchison and the alleged violations of the law.
 MT Morowtz said that should a court in determining a case state what might be lawfully charged as a maxi mum rate the railroads no doubt would aoopt 1t or Congress could provide that such rate should go into effect MT. Morowitz doubted the advisability of establishing special court for rail- road litigation. Ii there was such a court 1t should be composed of Circuit Judges who would not be permanently sitting as a railroad court
 Tn order to correct the difficulties en- countered in securing evidence of dis crlminations and rebates he suggested mat the Commission have the power to olrect that the books be examined by expert accountants.
 Relative to routing of shipments MT Morowitz said that shippers should not 1 have the choice of selecting connect ing lines By presents to the wives Of shippers and other methods rebates were granted and the law evaded.
 Have not clerks been paid s5 or BIO | to cause routings?" asked Senator | Elkins
 T know of such cases"
 Have you laid that information be- | fore the Interstate Commerce Com. mission?" asked Senator CIapp. amid | the laughter of the committee
 Should be Subject.
 Mir. Morowitz, discussing matters | further. said: Tt should be provided | that all fast freight lines, all private | car lines and all water lines engaged | in interstate trafic should be subjected | to the provisions of the Interstate | Commerce act Suitable provision | should be made for the protection of | the railway companies and shippers in | the United States against abuses on the | part of the carriers outside of the | United States who participate in inter state traf1c.
 Finally. carriers should be authoriz- ed to arrange among themselves for the making and maintenance of | reasonable rates. I do not wish to | suggest that the right should be given to carriers to enter into pooling agree ments or to make any binding agree | Sow tho making and maintenanC0