New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-03
MEN TESTIFY.
Mr.. Bond Says antitrust act
Caused Consolidation.

Washington, May 2.-Hugh L. Bond. OF the
Baltimore and Ohio Railroad. continued his
statement before the Senate Committee on IN
terstate Commerce to-day. He argued that the
present law was adequate for all purposes put
declared It was unfortunate that the act was
weighted down with penalties. Determinations
as well as rebates between persons were now
prevented Mr. Bond said the commission
ought not TO be compelled to devote so much
time to hearings, but should bring suits when
II appeared that unreason able rates were being
charged. He believed that a law could be
framed which would enjoin any rate the court
should name as unreasonable.
The court could find, declared Mr.. Bond, what
is q reasonable rate. The court had the power
now 10 fix a maximum rate. He believed 1t
would be best TO leave it within the power OF
the court to enjoin an unreasonable rate leav-
ing it TO the railroads to fix rate in lieu Of the
rate so enjoined. The railroads agree or have
an understanding regarding many things. he
said because it was absolutely necessary in the
conduct Of business.
Asked as TO what caused the consolidation Of
railroads Mr.. Bond answered: THE antitrust
act" He explained that there was no method
of preventing weaker lines from cutting rates
The weaker lines were taken in so as to prevent
Generalization of rates
Robert Mather. chairman Of the executive
Pacific Railroad Company, and general counsel
Of the Rock Island and st. Louis and San Fran
cisco Railroad, was next heard. He said in part
Rates are not unreasonable and rebates are, or
can be. prevented under existing laws. Govern
ment regulation of common carriers seeks to ac-
complish two purposes: First the establishment
and maintenance or reasonable rates; an0' sec
ond, the prohibition of determinations. In the
present discussion two propositions may be con-
sidered as settled: First, that the railway rates
United themselves
reasonable; and, second, that determinations
which result from secret rate making and rebate
giving and other like devices have been done
away with under the existing law The first
proposition is demonstrated by the decrease in
the rate per ton per mile for freight transporta-
ton in the United States from 199 cents in
1870 to 1853 cent in 1903, and by the fact that
existing rates in this country are one-third the
rates charged in England and France and one
half the rates in Germany, and by the prevalent
prosperity of American commerce under the
present basis Of rates.
The evils Of secret rebates were ended by, the
passage of the EIkins act in 1903 and the con-
cededly general acquiescence Of the carriers In
The only evil demanding additional legislation
is preference between localities. and the question
resolves itself into this:
Is It necessary desirable that the Interstate
Commerce Commission should be given the rate
making power in order that preferences between
localities shall cease? The proposed legislation
Is not necessary for there seems to be nothing in
the commercial financial situation in the
country which demands such a radical departure
from plan Of rate making which has been long
established and under which our commerce has
grown to its present stupendous proportions.
That there is a public clamor for giving the rate
making power 70 the commission cannot be de-
MED, but that it is msled clamor is plainly ap-
parent. The evil which is in the public mind,
and which the public generally believes is to be
cured by the proposed legislation, is the evil Of
rebates and determinations between shippers
This was the keynote Of the Presidents mes
sage. If 1t We're clearly comprehended that these
practices are all prohibited by the original act
TO regulate commerce, and that all can be pre-
Pf Dllhl liz pIo T-CrJ1H
be at loss to put its finger upon any specific
evils to be remedied by new legislation and
would agree with the statement of the Inter-
state Commerce Commission itself that the tex
isting system Of laws applicable to the wrong
oolng is complete and ample. No amendment Of
the statute, therefore. is necessary"