The Birmingham age-herald., 1905-04-19
MaaWe'z Speaks Before the
 Senate Committee
REPRESENTS THE SANTA FE
Senator Morgan Issues Statement De- fining Jurisdiction of Congress- In Regulating Freight Rates In
 the United Siaes.

Washington, April 1S-Vfctor Mora wetz of New York opened the hearing before the Senate committee on interstate commerce today. He is chairman of the executive committee and general counsel of the Atchison, Topeka and Santa Fe railroad He made statement regard ing the mileage, stock, bonds and em- ployes of the railroad He said it was a fair estimate that 450,OO0 persons would be interested in any legislation affecting the road.
 Speaking of the railways in general, he said they had some difficulty in keep ing up their betterments and improve ments. If 1t was attempted to adjust railway rates in times of prosperity, and large business on a basis of earnings. what would happen, he asked, in bad times? He insisted that railroad rates were not excessive Under the common law the carriers were prohibited from making unjust discrminations. Congress had no constitution right to fix a rate which would not give the shipper req sonable return, or would be confiscatory of the property of the railroad. Taking up the Esch-Townsend bill, Mir Moro- weitz said that the language relating to the fixing of rates by the commission and for review of such rates by court was subject to questionable construction and indefinite as to the meaning, and should be carefully considered
 Could Not Delegate Power.
 In his opinion Congress could not dele gate power upon the commission to fix arbitrary rates without prescribing regu- lations and rules governing it's acts. Re- plying to questions MT. Morawetz said that Congress could not authorize courts to fix rates. It could confer upon the courts the power to determine if a rate was excessively high, or if rate was eonfscatorily low
 2 i,s Ar Morawetz said that tle court in determining whether rate was too high could be required to fix a maximum rate that could have been iawrulIy imposed but could not fix the rate for the future, but in reply to a question by MT. Dolli- yer he said that Congress could provide that the rate which the court found was reasonable thereafter should go into ef- feet Congress could fix what should be maximum and minimum rates and possi- bly, could delegate this power to com mission.
 The grant of discretionary power to fix rates and adjust the relatives rates of different localities would vest the com mission with practically autocratic power and place it in practical control of prop erty of vast value
 MT. Morawetz spoke of the commission as a political organization because it was proved that not more than three should be of the same political party. It might occur that the commission would be sec tlonal and that 1t would discriminate in favor of northern cities against southern cities or other points.
 In discussing the provision of the con- stitution that no preference shall be given by any regulation of commerce or reve- nue to the ports of any state over those of another MT. Morawetz said that if the discrimination in fixing rates was incl dental and not direct. there would be no violation of the constitution.
 Commission Is Not Useless.
 In the course of his remarks Mr Mo- rawetz said he did not agree with those who thought the interstate commerce commission was useless. He thought the interstate commerce act was useful The commission had devoted too much of it's time to hearing and writing opinions which 1t cannot enforce.
 The commission when it believed that any provision of the law is being violated should institute prosecution.
 why don't they bring suits under the Elkin's act?" asked MT. Morawetz
 sl understand remarked Senator Deliver, that an action Is soon to be brought against the Atchison for violation of the law.
 T know nothing about it more than I have read in the newspapers" replied Mir Morawetz. He expressed willingness to answer any questions regarding the Atchison and the alleged violations of the law
 Mir. Morawetz said that should a court in determining a case state what might be lawfully charged as maximum rate the railroads no doubt would adopt it, or Congress could provide tha. such a rate should go into effect Mir. Morawetz doubted the advsablity | of establishing a special court for rail- road litigation. If there was such court it should be composed of circuit judger who would not be permanently sitting as a railroad court. In order to correct the difficulties en- countered in securing evidence of dis criminations and rebates. he suggested that the commission have the power to direct that the books be examined by ex pert accountants.
 Relative to routing of shipments, Mir. Morawetz said that shippers should not have the choice of selecting connecting lines By presents to the wives of ship pers and other methods rebates were granted, and the law evaded.
 Have not clerks been paid $5 or s10 tc change routings?" asked Senator Ellins
 'I know of such cases.
 Have you laid that information before the interstate commerce commisson?' asked Senator Clapp. amid the laughter of the committee.
 MT Morawetz discussing matters fur ther, said:
 What Provisions Should Be.
 Ut should be provided that all fast freight lines, all private car lines and all water lines engaged in interstate traffic should be subjected to the provisions of the interstate commerce act.
 Suitable provision should be made for the protection of the railway companies and shippers in the United States against abuses on the part of carriers outside of the United States who participate in in- terstate traffic.
 Finally carriers should be authorized to arrange among themselves for the 
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