Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-11-17
Pres. Wilcox Discusses
Railroad Rate Legislation.
Says Control Would Be Political
and Consequently Dangerous.
Present RdleS Are Not Eycessige..-Ouotes
Figures 10 Substantiate Claims.


the Delaware & Hudson Railroad, in
the Yale Review for November, out
Wednesday. Mr.. Taft's argument in his
speech in Akron, Ohio, on Oct. Il, in
which the secretary of war emphatical-
ly denied that Pres. Roosevelt contemp-
lated any scheme Of rate-fixing by
federal commission. i thus met by
Mr.. Wilcox:
General rate-fiXing would MANIFEST
ly be the commissions principal future
activity. In its annual report for 1895
(page 49,, the commission said: Every
case before the commission, however
trivial it may appear, involves IN II"
disposition the formulation OF primer
pies under the law which have an nm
mediate bearing upon the business and
the commerce. not only of the immedi-
ate locality, but often of the entire
country In its annual report Tor l'oi
the commission said page 80: 1t Is
probably nearer the truth to say that
the cases now pending before the COM
mission directly or indirectly AFFECT al
most every locality ana, therefore,
nearly all the people Il the United
States IN his testimony before the
Senate committee, Mr.. Bacon, the chief
advocate Of political rate-fixing, said
There are three cases within the past
year in which large sections Of the
country are intereSted-an immense
populatiou-une of which covers
large part 81 tho Pacific coast; another
covering the southeastern section of
the country, with reference To lumber;
and the third covering the whole coun-
try with reference to hay. The rates
from the different districts are so in
ter-relatUd with one another That they
must be considered as a whole Mir.
prouty, the leading member of the
commission III rate-fXing activities,
said before the SENATE committee that
the commission has not u case pending
before. il that does not involve a fu-
ture rate and that many single eases
involve une thousand rates
After pointing out that the mileage
Of the roads is 213,90i. the number OF
employees. .296 III, the operating eX-
pcnses. last year. 81 ,33S 1862 and
that there are annually filled more than
100000 tariffs, representing probably at
least 900, 900 rates, Mr.. Wilcox says:
THE proposed legislation has placed
these vast interests under the control
Of the mission, and the attorney
general has ruled that the commission
would be independent of the courts SO
long as the rates which IT fixed 90 llot
amount to demonstrable confscatlon-
Nothing could be more dangerous to
the value Of railroad property than the
system now proposed of committing its
future to the control Of political body.
whose. chief function would be to APP
pease those certain hostile claims. Con-
slant reductions, now here and now
Il FRO ~
erty.
THE frequent threat Of possible gov
eminent ownership, is, therefore, WITH
out force. That would be Tar prefer
able, because it would involve payment
of the value of the property before It's
earning power was destroyed; but the
effect Of the proposed schem" would
Toe to ineidiously break down the earn
,ng power without paying for the prop
,rty.'
In dealing with the complaint that
rates are exorbitant, Mr. Wilcox thus
:tunS up the situation:
In 1904 the rate per mile on freight
Was ~ cents per ton and on passengers
ras zoos cents each. The official publ
,Htious of the government show that
rom the year 1887 until 1904. inclusive,
rces generally increased seven per
.tnt.. while the rate per ton mile on
The railroads decreased 81 per cent.
Notwithstanding this rise in prices gen
s." lily. the freight rate in 1904, was on
0C56 of cent higher than the lowest
pint ever reached
Rate fixing by federal commission.
Mr. Wilcox argues will establish rig
4 methods of trlnsactins business
which would arrest commercial prog
ress. The traffic officials will he ,X-
\trcIacly reluctant to reduce rates. BE-
cause their restoration would to prac-
tically impossible. A rate even fixed by
the commission would be incapable Of
change without a proceeding as dilatory
as a lawsuit; and as the commission
proceeded the scope of this rigid cond-
ZION Of rates would constantly extend.
Every practical man must realize that
business is carried on successfully by
negotiation and agreement of the par
ties rather than by the Judgment of
any tribunal. Business by lawsuit
would be lamentable failure. There
IS no successful branch of business in
which the general future relations of
those engaged therein are regulated by
trative commission or court of JUS
tce."
As TO the remedy for adjusting griev-
ahces. Mr.. Wilcox thus puts the case
Tor the railroads: The true remedy
Ties IN the enforcement of existing sta
.u'es which will prevent rebates and
determinations; and the resorting nv
'he commission directly to the courts
without dilatory preliminaries. so as to
s expeditions action by the onlv
prahch of the government which is en-
powered by the constitution to admin
justice and determine, rights of
nS me Elkins law and is fully sane.
uohed by the supreme court. i, VIII,
prevent unjust discrimination and M
oue OF unreasonable preferences 60
lar as concerns reasonableness of +,,o
rates, it is obvious that the nras ant
hethod under which the commissio,,
mas power TO pass upon existing r.toe
II Is obvious that the present methoa
mas been effectual, since no case of IN
reasonable rates has ever been iudio;ni