The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-01-17

Washington, January 12.-Samuel
Spencer, president of the Southern rail-
way, and authorized to voice the SEN
timents of the New York Central, Erie,
Chicago, Milwaukee n st. Paul,
Northern Pacific, Illinois Central, Della
ware, Lackawanna and western and
ether railway companies, spoke vigor-
ously today before the House commit
tee on interstate and foreign COM
merce against the Cooper-Quarles BILL
or any proposition to authorize the in
ter state commerce commission to fix
railway rates. Mr.. Spencer is the first
direct and official representative Of the
railways to be heard by the committee,
note of the opposition to rate-ixing by
the government.
Mr.. Spencer said the Interstate COM
merce law and the commission had been
in operation for eighteen years. Before
its operation the rebate, the secret con-
tract and discriminatory devices Of
various kinds were the rule. Now the
1everse is the case. Rates are substan-
TALLY maintained.
There is no difference of opinion
continued Mr. Spencer, "between the
railroads of the country, Congress and
the President on the subject that re-
bates are wrong. We agree with the
language of the president that 1.-The
highways of transportation must be
kept open to all upon equal er1ns On
that basis the railway companies are
ready and anxious to aid and co-ope-
rate. But I on think any additional
legislation is necessary in order to pro-
coed against that particular class of
abuses. If such legislation does appear
to Congress to be necessary, the rail-
ways of the country will certainly
stand, and I have no hesitation in say
ing so, in cooperation and aid to that
end.
THAT particular phase of regulation
has already been pronounced by the
commission as fully covered by existing
statutes. It simply becomes a question
Of enforcement of the law"
Asking the question as to the neces-
sity for the proposed legislation, Mr..
Spencer said about ninety per cent. Of
! all the claims or questions of various
kinds which have been presented to the
Interstate m commission dur-
ing hat time a W been adjusted with
out formal hearing and decisions on
the part of commission. That" he
said, docs not indicate either a fight
or non-co-operation on the part of the
railroads."
Of the remaining ten per cent. OF
the work of the commission scarcely
two per cent. was the subject of litiga-
| ton. OF 1874 cases decided against the
railroads., 43 went to litigation, showing
| acquiesence of the railroads in four
ffths of the decisions of the commits
| sion. OF the 43 cases, 25 related to rates
and in twenty-five of these the decis-
ions were reversed by the courts.
Referring to the personnel Of the
commission, Mr.. Spencer expressed the
confidence of the railway world in it
| and said it was justly worthy Of the
respect of the country. There was but
one feature of the Quarles-Cooper bill
which he wished to discuss specifically,
that was the portion comforting power
on the commission to substitute a rate
for one complained Of as unreasonable,
| after due hearing, said rate to remain
in effect subject to change only by the
commission or by the courts on appeal
by the railways.
The reasons advanced for the necessi-
ty Of this W were enumerated by
| Mr.. Spencer as, first it is merely re
storing a power which the commission
had for ten year exercised. This power,
Mr.. Spencer denia1 had ever legally ex-
listed and he reviewed the cases and lit
| igation which led to the decision of the
courts prohibiting the exercise Of the
power by the commission in 1897. at is
also Claimed" he continued, that this
| power would be a weapon in the hands
of the commission to prevent rebates.
| But a rate fixed by the commission can
be rebated Of evaded just as easily a.
any other. It has also been claimed,
but not officially, I believe, that such
a power in the hands of the commission
would act as a deterrent in the matter
of secret rebating and other devices for
evading a rate. But the use Of thai
Weapon would punish, not the evader OF
the rate. but the road which upheld the
rate, as its exercise would be to let the
rate dow to the lower figure, thus
| working no hardship on the road max
ing the less rate, but Furnishing the road
maintaining the regular rate"
The most important claim in the
whole situation Mt. Spencer believed 10
he that such power would enable the
commission to prevent Discrimination
between localities This question OF
adjusting rates between localities, lie
said, was the most difficult and intr.-