Omaha daily bee., 1905-12-06


II implies for harm TO morals II worse
than any possible harm to material in
terests and the debauchory Of politics and
business by great dishonest corporations
y far worse than any actual material evil
they do the public Until the national gov
eminent obtains. in some manner which the
wisdom OF the congress may suggest.
proper control over the big corporations
engaged IN interstate commerce-that IL.
over the great majority OF the big corpora
tions-t VIII be impossible TO deal ado
quately with these evils.
Railroad Rate Regulation.
i am we'll aware Of the difficulties Of the
legislation that l am suggesting. and Of
the need Of temperate and cautious action
IN securing t.. should emphatically pro-
test against improperly radical or haety
action The first thing to do is to deal
WIN the great corporations engaged in
nc business OF interstate transportation.
Is ! said In my message OF December 6
iaHt, the immediate and most pressing need
20 far as legislation Is concerned. is the
enactment into law OF some scheme 10
secure TO the agents OF the government
sucn supervision and regulation of tho rates
charged by the railroads Of the country
.sssseu W interstate traffic as shall sum
marty and effectively prevent the in,po-
sitlon or unjust or unreasonable rotes II
pts. hhciude putting a complete stop 10
lcpates IN every shape and form. This
power TO regulate rates like all similar
powers over the business world should
&c SNerclseo with moderation, caution, and
sen restraint; but II should exist 90 that
need arises "heh tne
ne nrst consideration to be kent IN
. I1uud Is that the power should be afIirn,a.
t. I've ano should be given to some admin
st,,o.s Oooy created by the congress-. II
gwen TO the present Interstate Conor,oxca
Soinnnlssion or to reorRanized Interstate
Snoiii,nerce commission, such commission
snouid De made unequivocally adninIstra-
i've. do not believe in the governrnent
- i'e sIg with private business more than
n.I necessary, l do not believe in the gov
eIniheht undertaking any work which can
Win propriety be left in private hands
out neither do I believe in the govern
IuehIf nlnchlng from overseeing anv work
when IL becomes evident that abuses arc
e Ie 70 optain therein unless there is gov
troa -. superVlsion 1t Is not my prov
,nce' 70 indicate the exact terms OF the
Jaw which should be enacted: hut I call
eue ATTENTION Of the congress to certain
eAisting conditions with which. II Is de-
slraoie to deal. In my Judgment the most
liipoI,ant provision which such law should
SOntaih Is that comforting upon some COM
petent administrative body the nou,ar 70
ueelue' upon the case being brought before
~, Wnether a given rate prescribed by a
railroad is reasonable and lust. and II A.
Is round to be unreasonable and unjust
enen, aIter full investigation of the COM
paint 70 prescribe the limit of rate be-
yond which it shall not be lawful to 20
-the maximum reasonable rate. as IT is
commonly called-this decision 10 90 INFO
erect within a reasonable time ana n
OBTAIN from thence onward, subject to re-
view ny the courts. 1t sometimes happens
at present not that a rate is too high,
put Nthat a favored shipper is given too
low a rate. In such case the commission
would have the right to fix this already
established minimum rate as the maxi
mum; and 1t would need only one or two
such decisions by the Commission IN cure
railroad companies OF the practice of civ
Ing improper minimum rates call yotlr
attention to the fact that my proposal Is
not TO give the commission power to initiate
or originate rates generally but to regu-
late a rate already fixed or originated by
the roads, upon complaint and after in
vestigation. 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 regu-
iation. The first necessity is to secure It;
and unless II is granted to the commits
sion there is little use in touching the
subject at all. .s.
illegal transactions often occur under
the forms OF law. It has often occurred
1
officer to buy large quantity Of some
commodity and then sitter It has jbeen
| 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
/ Il must not be forgotten that the big ship
pers 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 understand that any kind OF
commission paid on freight shipments
whether in this form or IN the form OF
! fictitious damages, or of a concession,
a free pass, reduced passenger rate, OF
payment OF brokerage, is illegal. II is
worth while considering whether Il would
not be wise to confer on the government
the right of civil action against the bene-
fciary Of a rebate for at least twice the
value of the rebate; this would help stop
what is really blackmail Elevator allow
ances should be stopped, for they have
now grown to such an extent that they
are demoralizing and are used as rebates
| 1.-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 in
stance, at once put stop to the EFFORTS
| OF any one iH~shipper or big railroad e
| discriminate against or secure advantages
over some rivala and such agreement
would make the railroads themselves agents
| for enforcing the law. The power vested
| In the government TO put stop to agree
| ments to. the detriment of the public
/ should, in my judgment, be accompanied
by power to permit, under specific con-
ditions and careful supervision. agreement
Dclearly in the interest of the public. But
| In my Judgment. the necessity for givine
| this further power is by no means as
| great as the necessity for giving the com
| mission or administrative body the other
powers have. enumerated above; and Il
| may well be inadvieable TO attempt e
| vest this particular power in the copf
mission or other administrative body unit
] Il already possesses and Is exercising VIVA
/ I regard as by far the most important OF
1 All the powers recommend-as indeed tbs
yitaNy Important power-that 70 nix giyer
| maximum rate. which rate, after the lapse
OF a reasonable time, goes into Iuil ehect
! subject to review by the courts
| IAN private car lines. Industrial roads
! refrigerator charges and the like should
| be expressly put under the supervision
| of the Interstate Commerce commission OF
some similar body so FAR as rates and
| agreements practically affecting rates arr
| concerned The privste car owners and
| the owners OF Industrial railroads are en-
/ titled TO fair and reasonable compensa'
| ton for their investment, but neither pri
1 yate cars nor industrial railroads nor spun
| tracks should be utilized as devices foi
securing preferential rates. A rebate II
\ icing charges Is just as pernieious as re
bate In any other way. No lower rats
4 should apply on goods imported thar
ieactuauv obtains on domestic goods from