Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-04-19
The Interstate Commerce
Committee in Session.
Sante Fe Railroad Manager
Discusses Various Phases.
States That There are At Present
Three Evils.

n;urayer of the Sante FEE railroad. lie
discussed The railroad ana sald IL WIS
l., fair estimate that 430,0O0 person"
| vouid b,- interested in any legislation
affecting the road.
| Sue;kiue of the railways in general.
h.. sand they had some difficulty in
keepi.lg uI their betterments and inn
nrovnments. If it was ATTEMPTED to
Ia,iius, railway rates in times OF pros
| r.rity and large business on basis
| of earnings. what would happen, he
| asked in bad times
| There We're three evils complained of
he said. upon which the demand was
made for legislation 10 fix rates: First
| that railroad rates We're excessive:
| stconu. that there were diScriminHt lens
| aa,,iii:t shippers: third. that there
were determinations against localities.
| He insisted that railroad rates We're
not excessive as under the common law
| the carriers were prohibited from max
| ing unreasonable rates. and from MAX
| ing unjust Determinations. Congress
has 40 constitutional right To fix Il rate
which would not give shippers real
soma ble return or would be conliscatory
of the property OF the railroad.
! Taking up the Esch- Townsend bill,
| Mr.. MarowetZ said Congress could pre-
| scribe general rules for the regulation
! of interstate traffic and could delegate
| to a commission to determine primal
| t&cie what rates are unreaSonabiy high.
subject to review by Il court. In his
| opinion Congress could not delegate
! power upon the commission to fix ar
| bitrary rates without prescribing reg
| u'ntions governing its acts. Congress
could not confer judicial powers upon
the interstate commerce commission,
nor impose on courts Legislative flInc-
tons.
Replying to questions. Mr.. Mo-
rawetz said that Congress could not
| authorize courts to fix rates. 1t could
| confer upon the courts the power to
| determine if Il rate was excessively
| high or a rate extremely low.
The grant of discretionary power. Mr.
NOr:tWetZ said. to iix rates and a1juS;
| he relative rates of different localities
| would vest the commission with prac-
| .ical!" autocratic pOwcr. and place il
| n practical control Of property Of vast
| value.
| In the course of his remarks. Mr.
| hose who thought the interstate COM
| rercn commission was useless. Thu
commission had devoted too much of its
| line to hearing and writing opinions
vhich il cannot enforce.
The commission when it believed that
| my provision of the law was being vio-
| ated, should institute Il prosecution.
| Why don't they bring suits unda'
1 Mnv
| Il understand" remarked Senator
| Oollver, that an action is soon to be
| ,.ousht against the Atchison for vio-
| alton Of the law.
| II know nothing mora about it than
| have read in the newspapers. replle'i
| Mr.. Mora wetZ. He expressed a willing
| ,ess TO answer any questions regarding
he Atchiyon and the alleged violations
| If The law.
MI Morawetz sail that should n
| curt in discriminating Il case, state
| what might be lawfully charged as a
| maximum rate. the railroads no doubt
| woult, adept it. or Congress could pro
| vide that such rate should go int"
| effect.
| In order to correct the difficulties en-
| ,ountered i'm securing Evidence OF lis
| .,imnations and rebates. he suggested
| hat he commission have the power to
| lirect that the books be examined by
| 'Npert accountants.
| Mr.. MorawetZ further said:
1T should be provided that all fast
freight lireS. all private car lines and
| all water lines engdg"i in Interstate
traffic SHOULD he subjected to the pro-
| visions of the Interstate commerce act
Suitable provisions should be made
for the protection Of the railway COM
panies and shippers in the United
| States against abuses OH the part of
| carriers outside Of tn, United States
| VINO participate in Interstate traffic.
Finally carriers should be author
iZed to arrange among themselves for
the making and maintenance of rea-
| sOndble rates. do not row wish to
| suggest thdt the right should be given
To curriers' to enter into pooling agree
mentS or to make any binding agree
| meiitS for the making and maintenance
of rates. Rut il is obviously Impossible
| for the various railway companies
| throughout the United States to carry
| on their business and to serve the pub
lie unless their officers can meet and
reach and understanding upon matters
| Of common interest. They should be
| permitted to do this necessary act
| without running the risk of becoming
criminals under the provisions of the
| Sherman act.
Senator Foraker asked why water
lines should be subjected to interstate
commerce regulations.
"To prevent rebates and discrimin-
atiors.' replied Mr.. MOrawetZ.
"Whenever you put the water lines
under government control" remarked
| Senator Cullom. "you nut rates upon
railroads everywhere. Water lines reg
| uiate railroad rates.
Nv. MorawetZ said that carriers now
get together and discuss rates. at
might be called a combination" he
said. among the railroad men,
"Ihat is in violation of the law re-
marked Chairman Elkins.
vest" replied Mr.. MorawetZ. "They
violate the law every day" remarked
Sen ator Eikirs.
Chaos would ensue if they did not"
| renlind Air MoraWetZ