Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-27
NO DISSENTING VOICE
Unanimous Report on the Hep
burn Rate Bill.
THE PRESIDENTS VIEWS
Power Given to Establish, but Not to
Initiate Rates.
THE PENALTY FIXED AT $1,000
Interstate Commission Increased by
Two Members--Salaries Raised
to $4,000.
HE PENALTY FIXED AT $1,000

ported to the House of Representatives this
afternoon by the unanimous recommends
| ton of the eighteen members of the inter-
state and foreign commerce committee.
Mr.. Hepburn. chairman of the committee,
prepared the report, which is, in part, as
follows:
1.-THE committee on Interstate and foreign
commerce instructs me to report back to the
House H. r. 1881. To amend an act en-
titled IAN act to regulate commerce." ap-
proved February 4, 1851 without amend
ment- and to recommend its passage. This
recommendation is participated in by every
| member OF the committee. eighteen mem
bers being present when the action was
taken, and al concurring therein
1.-THE subject of enlarging the powers Of
the interstate commerce commission Is one
that has received the attention Of this
committee for several years. During that
period nearly all of the interests involved
In such change in legislation as is pro-
posed have been heard through the repre-
sentatives of those interests before the
committee. The subject has also received
the attention Of the committee on COM
merce of the Senate, and Ave volumes of
hearings have been published that were
accessible to your committee. In the prep
aration of this bill the committee have
been aided by their study of all the bills
and probably have borrowed something
from each one. 1t will be noticed that
many of the features of the Esch- Town
send bill, reported at the last session of the
F1fty-eighth Congress with the recommen-
dation of a large majority of the commit
tee. are preserved in this bill
Demands of the Shippers.
For some time the shippers of merchau-
disc throughout the country have very
generally been demanding through the
press, through conventions, and through pc
titions, an enlargement of the powers of
the interstate commerce commission. so
that certain abuses frequently perpetrated
by common carriers by rail could be pre-
vented. 1t has been believed by a large
portion of the shippers that railway rates
were In many instances too high, and that
favoritism through rebates and other forms
of discrimination were INDUCED In by va
rious methods by the carriers. This bill
seeks to remedy those evils by amend
ments to existing laws. The interstate
commerce law has been in force nearly
twenty years.
During that time the interstate commerce
commission and the courts have given con-
struction to many of its provisions. There
fore it was not deemed wise to attempt an
entire new enactment, but, on the contrary.
to preserve all of the law that could be
preserved, and only amend 1t in the direc
ton Of giving more of power, and making
more plain some of it's provisions
Prior to the enactment of the Interstate
commerce act of 1887 the friends of
| remedial legislation had before them two
| plans
One advocated by a distinguished repre-
sentative from Texas, Mr.. Reagan, propos-
| ing certain prohibitions and requirements,
| and penalties that the carriers should be
| subjected to, but providing no additional
methods for their enforcement and no new
aids for the discovery of wrongdoing or for
! securing the punishment of the wrongdoerS.
| fine law proposed was to be administered
| by the judicial system then in existence.
| The other scheme, presented by distin-
guished senator from Illinois, Mr.. Cullom,
| contemplated the creation of the interstate
| commerce commission as it now exists, with
| the duties and powers now imposed by law,
| with substantially the same prohibitions,
| requirements and penalties to be imposed
| upon the carrier.
The powers of the commission enabled
| them to hear complaints. to investigate
! facts concerning them, to search for viola
/ lions of the law and to aid the courts
! through their discoveries, in enforcing the
| law. This latter system was established by
| the act of 1881: was somewhat improved by
the amendments of two years later, and Is
| retained in the bill reported with the pow
! ers enlarged and made more definite.
Evading the Elkins Law.
| THE act known as the Elkins act of 1903
| gave additional strength to previous legis-
| lation through its more specific prohibitions
| relating to rebates Determinations and pref
| erences. Yet the ingenuity of some Of the
! carriers and shippers has resulted in avoid
| ing the provisions. of that act through the
| use of joint tariffs. involving, In some in
\ stances, railroad and Il mere switch owned
| by shipper, through arrangements where
| by excessive mileage was given to the
! shipper OF products who owned its own
! cars; through the use of refrigerator cars.
| through the permission given to fndepend-
ent corporations to render some service in
! cident to the shipment, as to the furnish
| ing OF ice in the bunkers of the car; by
what Is known the midnight tariff, a
| method involving an arrangement with a
| shipper 10 assemble his freights, have them
| ready for shipment at a particular date,
whereupon the carrier would give the nee
| essary three days notice of reduction in
| the rate.
| competing carriers and shippers would
know nothing about this arrangement. The
/ freight would be shipped at the new lower
| rate, and then there would be restoration
| OF the old rate and by other means and de-
! vices.
ut is proper here to say to those who
/ complain of this legislation that the neces-
| sity for it is the result of the misconduct
| of carriers. Not necessarily OF all, but GER
| tainly very many of them. have INDUCED
| in some form of violation of the law. The
| law OF today would be fairly satisfactory
| to all shippers IL the spirit OF fairness re-
| uured by IL had controlled the conduct OF
| the carriers, and the necessity for the pro-
| posed legislation Is the result Of and Is
| made necessary by the misconduct OF par
| ties who are now most clanoFouS aSainsl
| additional restraint. If the carriers had
In good faith accepted existing statutes. and
| obeyed them, there would have been no ne
| cessity for increasing the powers OF the
| commission or the enactment of new, CO.
| ercive measures.
This bill does not attempt to give power
! to the commission to readjust classification
| of freight The power to establish sys-
| TEN OF classification Is. in the Judgment OF
the committee. very much greater power
over rates than the provisions of this bill
| confer upon the interstate commerce COM
| mission. AS but little complaint has been
| made to the committee concerning CLASH
fcation IL was not deemed wise at this
| time to suggest new legislation upon that
! subject. So too, with the question OF the
relation of rates. The committee has no,
deemed 1t wise at this time to suggest ne "
legislation 20 change existing law upon that
| subject 1t is one of very great Importance
interesting, however. a rule, TO certain
particular communities rather than to the
| public at large. II involves conflicts be-
tween towns and cities rather than the pub
lie generally. and 1t relates more to the
building up Of certain local interests of a
| local nature rather than to the interests o,
the people of the whole country
Therefore, we thought best not to hamper
| or hinder the subjects of the bill by addina
At.a.a1- t.a...