The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1905-12-08

/ emphatically protest against improp-
| erly radical or hasty action. The first
] thing to do is to deal with the great
| corporations engaged in the business
| of interstate transportation. AS said
| in my message of December last the
| immediate and most pressing need, so
| far as legislation is concerned is the
| enactment into law of some scheme to
secure to the agents of the govern
ment such supervision and regulation
of the rates charged by the railroads
of the country engaged in interstate
trafhc as shall summarily and effec-
lively prevent the imposition of unjust
or unreasonable rates. 1t must include
putting complete stop to rebates in
every shape and form. This power to
regulate rates, like all similar powers
over the business world, should be eX-
ercised with moderation, 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 nnd should be given to
some administrative body created by
the congress. If given to the present
interstate commerce commission or to
a reorganized interstate commerce
| commission, such commission should
| be made unequivocally administrative.
I do not believe in the government in
than is necessary. l do not believe In
| the government undertaking any work
| which can with propriety be left in
| private hands. But neither do l be-
| lieve in the government flinching from
| overseeing any work when 1T becomes
| evident that abuses are sure to OBJ
| tain therein unless there is govern
mental supervision. 1t is not my prov
| ince to indicate the exact terms of the
| law which should be enacted; but L
| call the attention of the congress TO
certain existing conditions with which
| it is desirable to deal. In my Judg-
| ment the most important provision
| 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
if it is found to be unreasonable and
unjust then, after full investigation
of the complaint to prescribe the limit
of rate beyond which it shall not be
lawful to go-the maximum reason
able rate as it is commonly called
this decision to go into effect within
reasonable time and to obtain from
thence onward, subject to review by
the courts. 1t sometimes happens at
present, not that rate is too high
but that a favored shipper is given too
low a rate. In such case the commits
sion would have the right to fix this
already established minimum rate as
the maximum; and it would need only
one or two such decisions by the COM
mission to cure railroad companies Of
the practice of giving improper mini
mum rates. I call your attention to
the fact that my proposal is not to
give the commission power to initiate
or originate rates generally. but to
regulate a rate already fixed or origi-
10
and after investigation. A heavy
| penalty should be exacted from any
| corporation which fails to respect an
order of the commission. I regard this
power to establish a maximum rate.
| as being essential to any scheme of
real reform in the matter of railway
| regulation. The first necessity Is to
secure it; and unless it is granted to
| the commission there is little use in
| touching the subject at all.
Rebates Really Blackmail.
Illegal transactions often occur un-
der the forms of law. 1t has often oc-
CURED that a shipper has been told
by traffic officer to buy a large
quantity of some commodity and then
after it has been bought an open re-
duction is made in the rate to take
effect Immediately, the arrangement
resulting to the profit of the one ship
per 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 1t
clear so that nobody can fail to under
stand that any kind of commission
| paid on freight shipments, whether in
| this form or in the form of fictitious
damages or of concession, free
pass, reduced passenger rate, or pay
ment of brokerage. is illegal. 1t Is
worth while considering whether 1t
would not be wise to confer on the
government the right of civil action
against the beneficiary of rebate for
at least twice the value of the rebate;
this would help stop what is really
blackmail. Elevator allowances should
be stopped for they have now grown
to such an extent that they are de-
moralizing and are used as rebates.
The best possible regulation of rates
would, of course, be that regulation
secured by an honest agreement
among the railroads themselves to
carry out the law. Such general
agreement would, for instance, at once
put stop to the efforts of any one
| big shipper or big railroad to dis
criminate against or secure advan-
tages over some rival; and such agree
ment would make the railroads them
selves agents for enforcing the law.
The power vested in the government
to put a stop to agreements to the
detriment of the public should, in my
Judgment be accompanied by power to
permit. under specified conditions and
careful supervision, agreements clear
ly in the interest of the public. But,
in my judgment, the necessity for
giving this further power is by no
means as great as the necessity for
giving the commission or administra-
tive body the other powers l have
enumerated above; and 1T may well
be inadvisable to attempt to vest this
particular power in the commission or
other administrative body until 1T al
ready possesses and is exercising what
I regard as by far the most important
of all the powers / recommend-as in
deed the vitality important power
that to fix a given maximum rate,
which rate, after the lapse OF reason
able time, goes into full effect, subject
to review by the courts
All private car lines, industrial roads,
refrigerator charges, and the like should
be expressly put under the supervision
of the interstate commerce commission
or some similar body so far as rates and
agreements practically affecting rates are
concerned. The private car owners and
the owners of industrial railroads are en-
titled to a fair and reasonable compensa-
ton on their investment, but neither pri-
vate cars nor industrial railroads nor spur
tracks should be utilized as devices for
securing preferential rates. A rebate in
icing charges, or in mileage, or in a divi-
sion of the rate for refrigerating charges
is Just as pernicious as a rebate in any
otbar UNIV No lower rate should annlv