Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-01-13


fore the House commerce commit
tee today against the Quarles-
Cooper bill conferring greater
powers on the interstate commerce
commission. He declared himself
opposed to the giving of rebates,
and asserted that no well-managed
road now gives them, and that any
method to absolutely prohibit them
would be welcomed by the railroads.
Opposition to government rate making
for the railroads was continued today be-
fore the House committee on interstate
and foreign commerce.
The committee refused by vote of
to 3, to go into executive session to con-
slider motion by Representative Davey
of Louisiana to close the hearings on the
question January "a.
President Samuel Spencer of the South
ern railway resumed his argument of
yesterday against the Quarles-Coop
bill.
Mr.. Spencer, taking up the increase in
the receipts of railroads in 1908, of $780,
O0O, 700, over the year 1899, emphasized
again that the year 1890 was the lowest
rate period in the history of railroading.
He said that if the character of the tom
mage had been precisely the same during
the years 1899 and 1903 there would not
have been the S155,000,000 difference in
rates.
There are, however, fluctuations going
on in classification all the time. but these
reclassificationS have not resulted in in
cfeaSlng rates.
Classification Of Freight.
Answering question as to whether there
would be any objection to uniform classi-
fcation of freight throughout the country.
Mr.. Spencer said there might not be, al
though 1t would without doubt throw the
rates of certain railroads out of line. II it
was done violently and suddenly it would
result in a commercial upheaval. The put
ting of freight into classes to avoid rate
on every commodity, he safd had been
matter of evolution; certain groups of roads
had worked out their own classification,
and to disturb it would mean a general re-
adjustment of rates.
Asked If freight rates were the same both
ways on a given road, Mr.. Spencer said
there was often a great difference in rates
on the same commodity each way on the
road.
Answering Representative Richardson of
Alabama, Mr.. Spencer said: Speaking un-
officially for, might say, rs per cent of the
railroads of the country, I assert that YOU
cannot make law forbidding rebates too
drastic to suit u.s."
No well-managed road now gives rebates,
he continued, and any method to absolutely
prohibit the practice would be welcomed by
the railroads.
Reverting again to the result of reclassi-
hcation of freight, which is constantly
going on, Mr.. Spencer said the result was
uniformly reduction and not an increase
in rates.
Power Of the Commission.
Asked as to what power the interstate
commerce commission had regarding rates,
MIR. Spencer said: 'It has power to state
what is an unreasonable rate, and we have
the right to test that assertion in the
courts"
The comforting on the commission of the
power to declare what is a reasonable rate
he maintained, would be prejudicial to the
commercial interests of the country.
Confessing that he had not read the pend
ing bill with the idea that it granted au-
thority to the commission to raise rates, in
naming reasonable rate" Mr.. Spencer
said that in his mind such authority would
be carried in the measure. But he doubted
If the authority would ecer be exercised.
He indicated that the readjustment would
uniformly be a reduction in rates.
Carriers, he said, did not expect an arm
of the government to help them to raise or
maintain rates, but they ought to be left
free to cooperate with each other in the
way of making reasonable agreements
should be made public if necessary. 1t was
Indispensable that carriers should know
what each other was doing on a rate ON
any particular commodity.
IF legislation is to take place in any
FORM he continued land we hope it will
not be in this form, it should include some
thing that will insure stability of rates, and
that those rates should be high enough to
r M a n 1ia aryyion
formed In this connection there are three,
four or five statements in reports of the
interstate commerce commission that thera
are many instances in this country where
rates arc entirely too low.
The nan does not live" asserted Mr..
Spencer. who can draft law that will
grant authority to any body of men that
can be exercised effectively to abolish dis
elimination between localities. 1t is i'm
pos sible to do away with complaint of dis
elimination on the part of localities
Would Infict Injury.
The present bill. he said. would infiict an
irreparable injury on a railroad which has
fixed rate, after careful consideration, by
having that rate set aside and another
named by the commission, and the whole
matter tied up in the courts.
The bill. he said, would be conferring
aromaa6cs* powers upon one body. The
commission was created to institute pro-
ceedings against carriers. Here 1t was pro-
pesad to invest the body with judicial
{lsaattion-tke power to condemn a rate as
Then the next step contem-
plated was to give them authority to name
q new rate for the future-a function under
tn Law and decisions of the courts legis-
tive function. This would make the COM
mission, first, q prosecuting body next
judicial body, and lastly legislative body.
Mr.. Spencer asked the committee II 1t was
not worth while to stop and consider most
the effect OF the pending. bill in
view Of the unprecedented powers It grant
ed Speaking for the railroads. he said:
s.Alf we have the right to ask Is that the
subject shall be given a very Thorough and
careful consideration before action is
taken.'
The granting OF the power proposed, he
meant that eventually. II not
speedily, the commission would be forced
TO make every railroad rate In the coun-
try.
President spencer's Suggestions.
In closing he suggested that IN HIS opin-
ion the only le0islation necessary on the
subject at tho essent time. II indeed any
Was necesSarr 6aa the Stop0fHe az &ppoala