Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-24
Effect on Senate Committee
of the Testimony Heard.
NO RADICAL ACTION
AGREEMENT IN OPPOSITION TO
DISCRIMINATING RATES.
Differentials and the Question of Uni
form Mileage Likely to Be In
tricate Problems

Now that the Senate committee on inter
state commerce has finished the taking of
testimony on the proposition looking TO the
fixing OF railroad rates by a government
commission. together with other forms for
the extension OF federal supervision over
the great Interstate transportation compa-
MES of the country. much interest is felt
to the impression that this testimony
has made on the minds of the thirteen SEN
ators who compose that committee.
Many who have followed these proceed
ings carefully are convinced that the COM
mittee will not recommend any bill TO the
Senate fayoring any plan for turning over
to any government commission the power
to fix railroad rates. The interstate com
merce commission now has the power TO de-
clare that a particular rate Is excessive.
and then it lies with the railroad company
either to accept that decision and lower the
particular rate or TO resist the reduction
in the United States courts.
Governmental Rate Fixing.
1t has been contended by those who favor
government rate fixing that when the com
mission decides that "a rate is excessive It
can as readily decide what the rate should
be and at once fix 1t, having Its decision
go into effect at once. leaving the railroads
the power to go into court to obtain re-
yersal of that decision. In this way the
government commission would have power
to fix not only the maximum but also the
minimum rate. Even among those who
have advocated government rate fixing
there is difference of opinion as to
whetf or the government commission should
be authorized to command the railroad to
keep up certain rates when they might
want to put them down to an abnormal de-
gree as q result of severe competition. Most
of the rate-fixing advocates say that it
will be sufficient to authorize the commits
sion to keep the rates down, and that the
railroads can be depended upon TO prevent
them from going too far down.
But one thing seems quite certain. The
committee as a whole is not in sympathy
with any plan for government rate liking
that will go beyond keeping rates reason
able. 1t is not likely that the committee
can be counted upon to take any action
that will go much beyond the present law
on that subject The members may agree
on some plan for further eXpeditng the
work of the Interstate commerce commits
sion, but they are likely TO leave the power
to fix railroad rates with the railroads
themselves with the present legal restric-
tons.
Agreement as to Discrimination.
The committee and the railroad and
other witnesses have agreed that discrimi-
nations between shippers are indefensible
on any ground, and should be effectualy
stopped.
Such determinations are now regarded as
chiefly confined to private car service and
other special facilities provided by large
shippers which form the basis OF special
concessions 1t has been generally claimed
that an enforcement of the Elkins act
would defeat all such Determinations, but
there is a general inclination the part
of the entire committee to strengthen the
law in that regard to the end that all DIS
ordinations between shippers may be pre-
vented. That is one and the only feature
of the investigation that gives no oppor-
tunity for a difference of opinion except
as to the method that is to be pursued in
bringing about the remedy.
As to Differentials.
The subject of differentials and rate dis
ordinations between communities has
proved to be the most vexed question that
the committee has had 20 deal with. Phil
adelphia, Baltimore and all the southern
ports are given a more favorable rate on
the through shipments of staple articles
from the west than is given to New York
and Boston on the ground that the natural
advantages of New York and Boston are
so great that unless such a differential
We're allowed the ports from Philadelphia
southwark along the Atlantic and gulf
ports would be practically abandoned for
export shipments for the great products OF
the far west and northwest. While the
railroads can make such a distinction in
dealing with the seaports, it Is questionable
whether a government commission could
do So and in that one fact is said to be
tremendous argument for the southern sem
ators to proceed cautiously.
The destruction OF such dinerential. IL
Is said, would deal a death blow TO SOUTH
ern ports Senators Tilman Of South Caro-
lima, McLaurin of Mississippi. Carmack OF
Tennessee and Foster Of Louisiana are
members of the committee.
Uniform Mileage Rate.
Closely connected with the differentials is
age rate by which 1t would be impossible
to give the far west rates that are proper
tionaliy very much lower than local rates
on the railroads. That would add an i'm
mense charge to the shipment OF -four and
grain, cattle hogs and all live stock for
export. Senator's Cullom of Illinois. Dolli-
yer of Iowa, Foraker of Ohio, Clapp of
Minnesota and Willard OF Nebraska have a
constituency particularly Interested In that
phase of the railroad problem.
The necessity, which the railroads claim
they meet, to fix rates so that business can
be transacted. is urged a reason why a
uniformity of rates on any mileage basis
can never be realized.
All these questions will be discussed by
the committee before next December in or
dr. to determine what legislation can be
recommended to the Senate. The commit
tee met al o'clock today to talk the mat
over but the final sessions at which action
by the committee will be taken will prob