The Birmingham age-herald., 1905-04-21
WOULD IMPOSE
 ON RAILROADS Congress Has No Right to
 Regulate Rates REBATES \ THING OF PAST Says Congress, With Absolute Power Over National Banks, Does Not
 Attempt to Fix Rates
 of Interest.
REBATES \ THING OF PAST

Washington, April 20.-Lucius Futile. president of the Boston and Maine rail- road. was heard by the Senate commit tee on interstate commerce today He de- nied that the government had any au- thority over railroads because of the right the roads have in eminent domain. but only under the constitution and the gem eral police power of the government to prevent oppression. There was no stiff necked opposition among railroad men to government regulation of railroad. MT. Futile discussed the right and necessity O. eminent domain for public utilities.
 MT. Futile said there was not the least doubt about the right of Congress to regulate everything pertaining to inter- state commerce. subject only to eonsti- tutional limitations. He declared that the only valuable property right of a rail- way is the right to make its rates. The road could not remove it's property or abandon it's operation, and it must there- fore be enabled to make a rate which will give 1t a fair return on its invest- ment
 Three Systems In New EnqIand.
 Mir. Futile said there were practically three systems in New England. The Bos- ton and Maine dominates the northern half of New England Men in that region doing business must depend upon that road. and yet he said in twelve years not a complaint had been made to the interstate commerce. commission Tho same was substantially true of the New York. New Haven and Hartford, and the Boston and Albany Stability and uni form rates were necessary rather than lower rates
 He asserted that no five men could fix railroad rates for the country Messrs Gould, Morgan, Hartman and Vanderbilt could not either singly or to- gether fix rates on their lines, any. more than blacksmith could repair watch. Boards of directors did not discuss or fix rates This was left to expert traffic managers
 MT. Tuttle discussed at some length the reasons why there were low rates on cer- tain commodities; also the effect of water rates on railroad rates from North At lantic ports to southern points. and said that the railroad rates were lower from Chicago, Cincinnati and other points in the west because the railroads must meet the water rates. At times railroads, he said, must carry merchandise at a positive
 
 country moving.
 Subject to National Laws.
 Discussing the long and short haul propositions. Mr. Tuttle said the higher charges to intermediate points were sub ject to natural laws, and these could not be changed by Legislation. He believed that large amount of the transcontineg- tai business was carried at q loss On he Pacific coast there was competition vith | {. which carried goods by water He con tended that if Congress attempted n aav that there should not be charged high CT rate for a short haul than fora long haul, ii would destroy business ol hank rupt the railroads.
 MT. Tuttle said that Congreis win absolute power over national b,nks did not attempt to fix the rates of i5forest if Congress should provide thgt national banks should not charge moEo than 4 ner cent he believed most oY thon, uo,,ld liquidate The reason wK .hero vas a nehiahu ior .hc ies uiaIion of railroad rates ne salu' ""S Dkcause the roads move their propertyr
 MT, Futile said he f,aa o,,o oon,nlaint to make against the .t.to. nnnrnerce commission. It wens ta low too often. and did not settle end ,, casas bv neso- tation instead or so Ter cent of the cases being thus settled. tthoro should he 30 per cent.
 MT. Futile said the c,,s-,o, sbouid be relieved of much of s,.. ,e,.eeent duty. It should investigate easel and tnrn them oyer to the department os iust,ce The commission should not be n n,as, court. put puner pe,"esH the Aeople and the railroads.
 Are Things. of the Apast In reply to Senator Cullom. Mfr ruttIe said the rebates and unjust dNsertnoina tions were things of the past. ffta could see no need for changes in the ' nresen, law. save to make the nterstatsS com. merce commission an investigatingAr and prosecuting body. The agitation that aha, been going on by the people was due tC the constant reiteration of the interstaat, commerce commission that 1t should be clothed with power to fix rates. It was also due to the belief that rebates still were granted. which he did not believe.
 "A railroad president" remarked Sem ator Deliver stated in this city not long ago that the railway business of the country was honeycombed with rebates and discriminations.
 ",rhe man who made the statement" said MT Futile. mi ght have had per sonal knowledge of these things, His statement might have been in the nature of a confession.
 Further answering Senator Cullom. Mir. Futile said that the competing shippers could find out if rebates were being granted He thought that if railroads were giving rebates. they coule manipulate their books so that they could not be detected. He did not think the interstate commerce commission had made any strong effort to enforce the Elkin's law against rebates.