Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-03


| today in the Re:ord-Hcrald IN reference 20
railroad rate making in which a sug-
gestion is made to cover the defect IN the
Esch-Townscnd bill by placing the amount
In dispute in escrow IN prescribed deposi-
tories until the final adjudication by tie
court. The editorial is follows:
Railroad Rate Making.
The objections urged TO tie Eseh-Towu-
send bill providing for railroad rate rogu-
ation by the federal government through
the interstate commerce commission may
be stated as
First-The broad objection 70 the exor-
else of the rate-makng function by any
governmental agency.
Second-The more specific objection that
injustice is done the railroads in that the
bill proposes that the rate fixed by the
commission shall 20 into effect after thirty
days, although the courts may subsequently
declare II unreasonable or coniiscatory.
The first objection applies 10 any and all
measures looking to governmental rate
regulation and IS fundamental.
On this point. we believe, the general pub
lie sentiment is that the government can
and must effectively exercise its rate maxi
Ing powers, the plain alternative being that
the control Of the transportation agencies
must remain practically unrestricted in the
hands of the Owners of the railway sys-
| tens
cessty, comparable only with air and wa
ter.
Under modern economic development the
| railway systems of the country have come
under the control OF a small body of men
relatively, and by the same evolution
this concentration Is steadily proceeding
II requires no imaginative foresight to APP
prehend that In the near future an indi-
vdual and not oligarChy will control
national and individual essential of life.
We need not consider whether those now
|
ii wisely and properly.
Every existing rate and practice OF the
railroads may be beyond criticism. and stil
the question is the same.
That question is. Can any individual or
group of individuals, with necessarily self
| ish interest, be permitted to hold a power
| so despouc that he or they may absolutely
control the destiny and welfare Of nation
and people may ruin this town city or
state and bring prosperity and plenty TO
that?
We think the answer must obviously be
that this cannot be permitted. and that
either guardian or as owner the govern
ment must effectively control this trcmen-
dous power.
The Second Objection.
The objection that the measure under dis
cusson is specifically unfair as stated in
the second objection given above is diai-
cult to meet and, indeed, can be met only
by the assertion that up to this time every
ject that some measure of injustice is pos
sibly inflicted on either the shippers or the
railroads. and that If there is only offered
a choice of evils the chances are that less
injustice would be done by putting the rate
declared by the commission to be just and
reasonable into immediate effect than by
offering SO great an incentive for legal DE-
lays as would be found in a provision main
tanning the rate declared unreasonable until
the courts had upheld the commission IN,
substituting new rate
While If one or the other of these alter
natives must be chosen the former seems
pTrteiefabIe, the fact remains that under
TINS course the opportunity is offered for
grave injustice to the railroads in that
they may suffer very serious financial
losses by being obliged for considerable
period Of time to accept shlpmeuts ~ a
rate fixed by the interstate commerce ,-,,v,,
mission that is later. on revision declared
nold by The courts as unreasonable or con-
In this respect the plan of the tscb-
l3Whseho blll seems faulty, as is oener-
ally admitted, and the same imuiIIse mat
uemahas the guarantee Of justice to the
shlpper and the passenger requires also a
scrupuious guarding OF the right to euuai
justice to the railroads
ABOVE aH else, the American people want
TO be fair in this matter.
Several remedies have been offered to cura
the fault alluded to. Conspicuous among
these Is the plan of Secretary Morton
under which the rate comDlaipad 80 -
continued in force pending a confirmation
by the court of the rate substituted by The
commission, the railroad however. furnish
ing a pond to repay the excess charges in
case the decision supports the rate OF the
commission.
This course Is open to a number of Sc
nous objections, for ii directly invites tie
delays of legal processes by the railroads
by making 1t greatly to their financial in
terest TO put off the final decision TO- as
long period of time as possible and
throws also upon the individual shipper
n in q
his legal right TO lower rate than has
been allowed him during the time the mat
ter has been in the courts.
This is just unfair TO the simmer az
the plan of the Esch-Townsend bill is 10
the railroads.
The Solution.
In effort to discover some solution
that would be just all around, il seems tn
the Record Herald that It has found a
plan that should be satisfactory to all the
interests involved, presuming that all they
want is fair treatment.
Here it is:
In the event that rate is declared nm
reasonable or unjustly discriminating by
the interstate commerce commission and a
new rate subs ttuted, the new rate shall
go into effect thirty days thereafter, I'M
less the railroad or railroads affected APP
peals to the court OF transportation, in
which event the shipper or passenger shall
pay at the ole rate until the decision OF
The railroad collecting the freight charge
or selling the passenger ticket shall issue
a receipt declaring that stated amount
(being the difference between the rate
charged and that fixed by the interstate
commerce comnssion) is in dispute in the
courts, and that If the commission is sus-
talned the amount stated will be refunded.
The railroad is thereupon to place this
money in escrow in prescribed repositories
and file with the interstate commerce COM
mission at frequent intervals detailed state
mt nf ha fun Il ~
whom such receipts have been issued.
In the event that the rate of the commits
sion shall be upheld by the court the
amount in escrow, together with accrued
interest, shall be repaid to the shipper or
passenger, and If the rate of the railroad
shall be upheld the amount, with accrued
interest, shall be paid to the railroad.
This plan, we believe, will give justice
to all and at the same time will remove the
temptation to a railroad to dispute the JUS
tice of rate merely to delay its being put
into execution