Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1905-12-08


wages; it damages the small investor.
discourage thrift, and encourages gam
bling and speculation; While perhaps
worst of all is the thickness and dishon-
esty which it implies-for harm to NOR
ais is worse than any possible harm to
material interests, and the debauchery
of politics and business by great dishon-
est corpora tons is far worse than any
actual material evil they do the public
Until the national government obtains,
in some manner which the wisdom Of the
Congress may suggest, proper control
over the big corporations engaged IN IN
terstate commerce-that is, over the
great majority of the big corporations
it will be impossible to deal adequately
with these evils.
Railroad Rate Regulation.
The first thing to do is to deal with
the great corporations engaged in the
business of interstate transportation. The
immediate and most pressing need, so
far as legislation is concerned, is the en-
actment into law of some scheme to
secure to the agents of the government
such supervision and regulation OF the
rates charged by the railroads of the
country engaged in interstate traffic as
shall summarily and effectively prevent
the imposition of unj just or unreasonable
rates. 1t must include putting com
plete stop to rebates in every shape and
form. This power to regulate rates, like
all similar powers over the business
world, should be exercised with modera-
ton, caution and self-restraint; but it
should exist, so that it can be effectively
exercised when the need arises. The
first consideration to be kept in mind is
that the power should be affirmative and
should be given to some administrative
body created by the Congress- If given
to the present interstate commerce COM
mission or to a reorganized interstate
commerce commission, such commission
should be made unequivocally admins
trative. l do not believe in the govern
ment interfering with private business
more than is necessary. l do not believe
in the government undertaking any work
which can with propriety be left in prl-
vate hands But neither do ] believe in
the government fiinching from overseeing
any work when it becomes evident that
abuses are sure to obtain therein 1less
there is governmental supervision. 1t
is not my province to indicate the exact
terms Of the law which should be en-
acted; but I call the attention of the
Congress to certain existing conditions
with which it is desirable to deal. In
my judgment the most important pro-
vision which such law should contain is
that comforting upon some competent ad-
ministrative body the power to decide,
upon the case being brought before 1T,
whether a given rate prescribed by a
railroad is reasonable and just, and IT
it is found to be unreasonable and I'M
just, then, after full investigation of
the complaint, to prescribe the limit of
rate beyond which it shall not be lawful
to gO-the maximum reasonable rate, as
it is commonly called-this decision to go
into effect within a reasonable time and
to obtain from thence onward, subject
to review by the courts. heavy pen
atty should be eXacted from any corpora
ton which fails to respect an order OF
the commission.
Illegal transactions often occur under
the forms of law. 1t has often occurred
that a shipper has been told by traffic
officer to buy large quantity of some
commodity and then after it has been
bought an open reduction is made in the
rate to take effect Immediately, the ar
rangement resulting to the profit of the
one shipper and the one railroad and to
the damage of all their competitors; for
it must not be forgotten that the big
shippers are at least as much to blame
as any railroad in the matter OF rebates.
The law should make it clear so that no
body can fail to understand that any
kind of commission paid on freight ship
ments, whether in this form or in the
form of fictitious damages, or of con-
cesson, a free pass, reduced passenger
rate. or payment of brokerage, is illegal.
1t is worth while considering whether
it would not be wise to confer on the
government the right of civil action
against the beneficiary of a rebate for
at least twice the value of the rebate;
this would help stop what is really black
mail. Elevator allowances should be
stopped, for they have now grown to
such an extent that they are demoraliz-
ing and are used as rebates.
The best possible regulation of rates
would, of course, be that regulation Sc
cured by an honest agreement among
the railroads themselves to carry out the
law. Such a general agreement would,
for instance, at once put a stop to the
efforts of any one big shipper or big rail
road to discriminate against or secure
advantages over some rival; and such
agreement would make the railroads
themselves agents for enforcing the law.
There should be publicity of the ac-
counts of common carriers; no common
carrier engaged in interstate business
should keep any books or memoranda
other than those reported pursuant to
law or regulation, and these books or
memoranda should be open to the inspec-
ton of the government. Only IN this
way can violations or eyaSlOnS OF the
law be surely detected. a system of ex-
animation of railroad accounts should
be provided similar to that now conduct
ed into the national bands by the bank
examiners; few irst-class railroad ac-
countants, if they had proper direction
and proper authority to inspect books
and papers, could accomplish much in
preventing willful violations of the law.
| urge upon the Congress the need of
providing for expeditions action by the
interstate commerce commission in all
these matters.
Labor and Capital.
The national government has as a rule
but little occasion to deal with the formid-
able group of problems connected more or
less directly with what is known as the
labor question for In the great majority of
cases these problems must be dealt with
by the state and municipal authorities and
NOT Inv the national government. The ma
tional government has control of the Dis
trict of Columbia, however, and it should
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