The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-24
LIGHT ON THE
RATE QUESTION
Bacon Of Milwaukee Clears Away
Mistaken Notions Encour-
aged by Railroads.
BY w, w. Jermane.

ing atmosphere has been much be-
logged. during the past few weeks by
the reiterated statements Of witnesses
appearing before the senate committee
on interstate commerce that the effect
OF the legislation asked for by Presi-
dent Roosevelt and the shippers of the
ment the general rate-making power,
ands as an inevitable consequence, so
confuse commercial and industrial con-
d!tlons as to bring on period of fnan-
clal and industrial stringency border
ing on chaos. - .#
10 this reiterated statement E. P.
Bacon OF Milwaukee, who is at the
head OF the interests demanding leg
Islation, has made a careful reply, emf
braclng the shippers side of the con-
troVersy,. which he has introduced as
a part OF his testimony before the SEN
ate committee. His statement follows:
The Bacon Statement.
The objections and arguments presented
to the senate committee on Interstate
commerce by the representatives of the
railway interests in opposition to legisa-
ton charging the powers of the inter-
state commerce commission, have been
directed against form Of legislation that
has not been proposed in any Of the nu-
merous bills that have been introduced
In congress on the subject during the past
six years, and so far as am aware is
not contemplated by any of the advocates
of legislation for the protection of the
public interest against undue exactions or
discriminatory rates or practices on the
part of the carriers of the country.
The burden of their contention is that
to confer upon any government body the
authority to fix all the rates for the
transportation of persons and property
turnout the country would be disastrous
to the commercial interests of the coun-
try, as well as to the interest of the car
riers, and that no governmental body
could be established that would be cap
able Of dealing with the subject in this
way. .f....-
am ready, as a representative of the
commercial interests Of the country de-
manding this legislation, to concede these
points, once for all, and will say, in fact,
that were such legislation proposed as has
been argued against by the railway In
terests, the interests which I rep
resent would, I believe, oppose it as
strenuously as they have advocated
the form of legislation which is
embodied in the successive bills that have
been introduced in congress at their In
stance, the consideration of which re-
suited in the passage by the house of
representatives ~ of what is generally
known as the Esch-Townsend bill.
What the Bill Intends.
1t ought not to be necessary for me to
say that this bill does not provide for con-
ferr1ng upon the interstate commerce
commission, or any other government
body, any such power as that which has
been contended against by the represen-
tatives Of the railway interests. It goes
no further than to provide that when
rates are complained of and found to be
either unreasonable per Sc, or discrinin-
ative in their effect, the commission shall
have power not only to order their dis
continuance, as under the present law
but to require the substitution of such
rates as in its judgment are reasonable
and % term this athea~Arate-rnalk-
power, as has been done,f seemswte
me, whether so intended or not, to be
misleading. It would more properly be
called the rate-revising power.
It Is hardly conceivable that any body
named by the president to administer
equal justice between the public and the
carriers would be likely to exercise this
power otherwise than with due consider
alton Of the interests Of both parties, OF
that in it's purpose to protect the public
against injustice on the part OF the car
rier it would inf1ict injustice upon the car
rier, The arguments that have been Of
fered by opponents Of proper government
al regulation Of rates, it thus appears tt
me are chimerical and hardly worthy OF 6
passing thought.
- Examples from Abroad. .,, &.
The senate committee has had the ben
eft Of a presentation Of railway conditions
and governmental regulation in Germany
aand Great Britain, which has been inter
esting and instructive, but the conditions
of traffic in those countries ana the metn'
DDS of regulation are so different IRON
those prevailing or contemplated In TINS
country that they seem to AFFORD little, II
any. guide to the solution Of the question
that confronts us. According to the IN
formation presented, railway rates II
Germany are primarily fixed py the
government and IN Great 1r'an
schedules of maximum rates are
prescribed by the board Of trade.
body corresponding in a large degree Win
our interstate commerce commission, ano
It Is provided that any rates hxed py tne
carriers that are below the maximum
rates prescribed, shall not be increased ex-
cept with the consent OF the poard "
trade. Neither of these systems pears
any resemblance to that now IN eiiect %
that it Is proposed to put into eihect A.
this country. Hence am unable TO see
that the information has any p raStioa
hearing upon the legislation contemplated
other than to warn us against the aoop'
ton Of either of those systems, WHICH, 81
far as my information extends, no oilt
proposes shall be done ...
| Proposed Legislation.
Having considered two phases OF legls'
-, nIt,i,b have heen StrenuOuSly oD'
iacted to by the railway interest, altne
80 advocated by any one. SO far as
ba1a observed let us turn our attenuot!
to the legislation actually proposed.
maintain that in the present STATE Oh lily
law the primary requirement OF the ~ ~,
To regulate commerce." namely, tnat al
charges made for any service rendered o.
to be rendered in the transportation o.
passengers or property, or IN conhectio !,
| herewith, shall be reasonable anu JUST,
| ia without means of enforcement eAcep
| to such extent as the carrier Whlch, upol
| fu]I hearing, is held to have violated !
and has been notified, in accordance Will
the provisions Of the fifteenth section O
sold act ''to cease and des1st from sucf
violation" may determine for itself VIVA
change it will make In the rate con
demned. It is the purpose OF the ieglsla
| tion proposed to invest the interstate
commerce commission with the author1t!
and impose upon it the duty OF determin
ing what change is requisite In the rat'
| to bring it into conformity with the stan
| dard laid down In this primary REQUIRE
ment of the act, such change TO De pu
into effect by the carrier upon que no.,ce
It is only by this means that practica
effect can be given to the Fundamental
principle Of the act. Without this 1t IS
| mere declaration without force or enec