Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-19
FIXING RAILW AY RATES
VICTOR MORAWETZ EXAMINED
AT LENGTH.
Gives His Views as to the Regulation
Of Common Carriers by Congress
and q Commission,

and q Commission.
Mr.. Victor Morawetz. chairman of the ex-
ecutive committee of the board of directors
of the Atchison Topeka and Santa Fe Rail-
way Company. continued to testify before
the Senate committee interstate COM
merce yesterday afternoon until 80 o'clock.
He was asked numerous questions by men,
bers of the committee after The Stars re-
port of the proceedings was closed. and ex-
planned his position on many regal points
that had been referred TO In his testimony.
Powers Of Congress.
Mr.. MOrawetz said that the court in de-
termining whether a rate was too high
could be required to fix a maximum rate
that could have been lawfully imposed, but
could not fix the rate for the future, but in
reply to a question by Mr.. Dolliver he said
| that Congress could provide that the rate
which the court found was reasonable there
after should go into effect. Congress could
| fix what should be maximum and minimum
rates. and possibly could delegate this
power to commission. The grant of dis
| cretionary power to fix rates and adjust the
relative rates of different localities would
visit the commission with practically au-
| tocratic power and place it In practical
| control of property of vast value.
In discussing the provision of the consti-
ton that mo preference shall be given by
any regulation of commerce or revenue to
| the ports of one state over those Of an
other. Mr. Morawetz said that If the dis
crimina ton, In fixing rates. was incidental
and not direct. there would be no violatiO
of the Constitution.
Special Railway Court.
| Mr. Morawetz doubted the ACCESSIBILITY of
| establishing a special court for railroad lit
igation. If there was such court it should
| be composed of circuit judges, who would
| not be permanently sitting as rail-
| road court In order to correct the difficult
| ties encountered in securing evidence of dis
criminal tons and rebates he suggested that
| the commission have the power to direct
! that the books be examined by expert ac-
| countants.
| Relative to routing of shipments. Mr..
| Morawetz said that shippers should not
| have the choice of selecting connecting
lines. By presents to wives Of shippers and
| other methods rebates were granted and the
law eyaded.
Have not clerks been paid s. or $40 to
cause routing?" asked Senator Elkins.
II know Of such cases"
Have you laid that information before
| the interstate commerce commission?
asked Senator Clapp, amidst the laughter OF
the committee.
Mr.. Morawetz, discussing matters further.
said
cit should be provided that all fast freight
| lines, all private car lines and all water
lines engaged in interstate traffic shall be
subjected to the provisions OF the inter-
state commerce act.
Suitable provisions should be made for
the protection of the railway companies and
shippers of the United States against abuses
on the part of carriers outside of the United
States who participate in interstate traffic.
Agreement Among Carriers.
| 'Finally carriers should be authorized
to arrange among themselves for the max
81
I do not now wish to suggest that the right
| should be given to carriers to enter into
| pooling agreements or to make any bindlng
agreements for the making and mainte-
nance of rates. But it is obviously impos-
| sible for the various railway companies
| throughout the United States to carry on
their business and to serve the public unless
officers can meet and reach an understand
| ing upon matters of common interest. II
| is practically impossible for the railway
companies to establish schedules of rates to
| the satisfaction of the community If their
traffic officials cannot from time to time
meet and reach an understanding as to
what these schedules shall be. They should
be permitted to do this necessary act with
| out 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. :,
replied Mr.. Morawetz.
Control of Water Lines.
whenever you put the water lines under
government control" remarked Senator Gull
lom, you will put rates up on railroads
everywhere. Water lines regulate railroad
rates" Mr.. Morawetz said that carriers
now get together and discuss rates. 1T
might be called a combination" he said.
"among the railroad men,"
THAT Is no violation of the law" re-
marked Chairman Elkins.
Yes" replied Mr.. Morawetz.
"They violate the law every day." re-
marked Senator ElkinS
"Chaos would ensue If they did not" re-
piled Mr. MorawetZ.
Chairman Elkins asked if the law should
be changed so that it would be impossible
to charge more for a short haul than long
haul.
at would be revolutionary for the rail-
roads, replied Mr.. Morawetz. 1T would
compel the railroads to give up the long
haul business, especially the Pacific coast
business"
In answer to a question of Senator Ell
kins, Mr.. MorawetZ said that foreign lines
engaging partially in United States COM
merce should be subject to United States
control, the same as roads in the United
States. Mr.. Elkins suggested that they
could and would be reached by this gov
eminent.
Senator Elkins asked If it would be we'll
| to have the railroad presidents and traffic
managers, under oath. make report every
three months to the government that their
roads had not violated the law.
1T would not be practica BILE" replied Mr..
Morawetz. "Timid and honest presidents
would not accept places under these cond-
tions."
AS a number of senators desired to ask
Mr.. Morawetz questions, he was requested
to be present today at II o'clock, to which
hour the committee adjourned
Senator Morgan's Statement.
Senator Morgan's statement, submitted
Monday. has been printed for the use of the
committee. The Alabama senator makes
quite an elaborate review of the rights of
states and the general government relative
to transportation companies. In the course
of his remarks he says:
Congress confer Jurisdiction upon
the interstate commerce commission or any
other governing body, to legislate as to
rates or any other matter that concerns the
relations of common carriers to the public
in all cases where such carriers are within
the exclusive Jurisdiction of Congress. 1
see no difficulty in empowering the inter-
state commerce commission to enact regula-
tons for the control of the dealings of rail-
tfrv,eS xv,ftI