Omaha daily bee., 1906-03-08
BE Thinks Penalties Cannot Be Enforced
Pending Review.
TlLlMAN AND BAILEY DISAGREE
South Carolina Man Says 1t May Be Neces-
sary to Reform Courts,
cLAPp QUOTES FROM KNoXs BILL
Power to Enjoin what Would
Seem Unlawful Rate or
Act Inheres In the
Court.

! the supposed friends of the Dolliver- Hep
| burn railroad rate bill was made decidedly
manifest today in the senate chamber The
! division Is over the question whether a
| rate made by the Interstate Commerce
! commission shall be suspended by the
| courts pending final adjudication. aud was
| brought to the surface in a brief debate
which followed a set speech by Mr.. Clapp
in support OF the bill. In reply to ques-
ton by Mr.. Tillman, Mr.. Clapp expressed
doubt as to the power so to legislate as to
enforce penalties proposed by the bill
pending a review of any given finding by
the courts
Mr.. Tilman and Mr. Bailey took sharp
issue with this statement. The former ex-
pressed the opinion that the issue is a vital
one and declared that II an order of the
! commission is not to be maintained until
a final judicial settlement in case is
| reached, it will be necessary TO reform the
| courts.
| Mr.. Bailey also contended that congress
| can so legislate as to maintain the COM
missions rate until the final order of the
court is issued and to prevent interlocutory
orders suspending such rates. During the
! day there were two speeches on the rate
bill. the one by Mr. Clapp in support OF II
and another by Mr. Scott practically in op-
devoted to the statehood bill and Messrs,
Perkins and Spooner spoke in opposition to
that bill as It stands. The senate will meet
| tomorrow at II o'clock
bill amending the law relative to terms
| Of the United States courts at Evanston.
! Wyo., was passed. also joint resolution
authorizing the secretary Of war TO sell
coal TO residents of Nome, Alaska.
At 1870 o'clock Mr.. Scott addressed the
| senate on the railroad question.
senator scott speaks.
Mr.. SCOTS argument was directed mainly
against the principle Of the government
~nership of railroads In which he In
cn led the control Of rates by the govern
meat. He admitted that there are evils
conhscted with the railroad system OF the
count. but said he would not vote frr
the pea ling railroad rate bill without
provision for ample court review.
On the JNneral subject of permitting the
government 70 fix rates he said:
From an Ia, innate relationship with rail-
roads as shipper for nearly thirty years
| | have given th.s subject my consideration,
As a senator of ne United States / have
tried to study the subject of government
roads and all shippers AS consequence
am forced to the confusion, from every
standpoint, that the roa,l7 are better able
TO fix rates In accordance with the laws
Of trade than government
Mr.. Scott declared that as r the charge
OF unreasonable rates there Is Iractically
no foundation for it, lie referred to the
fear that the railroad consultations would
have the effect in the future of s, crtly
advancing rates, but he expressed the opI..
ion that that question could be dealt with
when 1t presents itself, If II ever does.
Experience of Germsny.
, Discussing the combination in favor Of
] 1s,; H.
, senator entered upon an analysis of the
effort to. prevent such determinations In
Germany, Austria, Australia and other for
! eign countries He gave especial attention
to the German system, saying:
4 Broadly speaking, after twenty-five years
Of experiment and trial, the situation in
the Capitalization of trade and commerce
has changed only for the worse. The
scheme has been failure; commerce and
In certain favored cities than ever before
and discrimination has been increased in
stead Of decreased. Sectional interests and
trade interests are at swords psints con-
corning the preservation OF established
d prevent that increase of competition be-
q tween rival purchasing and distributing
centers. which was inevitably good with
e the development of loug-dlstance traffic.
= Railroad rates are in politics. No great
state measure in tn" German empire can
be carried through without coalition of
discordant interests on the railroad aues-
. tion. SO bitter is the feeling, so intense
: the rivalry, that the German government
. has been forced 10 go into the canal build
I ing business on a most extensive scale;
= has been forced to grant export bounty
A duties, levy import duties, and in every
way possible Try TO placate diverging and
sectional interests. Virtually. freight or
e traffic barriers have been built around sec,
. | each section stands today by itself, fight
I ing for commercial interests.
e discrimination Must he Abolished.
lIzA ~
elimination. Of which the speaker said very
little is practiced He characterized as a
very pronounced evil the handling of one
a shippers product at the expense Of an
other. He said:
This is one OF the worst evils OF railroad
management today. II should be eradi-
stringent measures are necessary TO ac-
complish this end. The railroad. as a COM
mon mon eaTrier' 1nr must ana hie ought OF right
, | cilities. / may digress here for a moment
10 speak Of the great coal interests of the
$ country and 10 express my belief that IL Is
q ! a most dangerous course for a railroad IA
. pusue to be found as the owner Of or par
e of coal lands This | would hold true with
a | any of the great necessities Of life, and
believe that the railroad in the future, as
n In the past, should devote Itself entirely 70
h It's duties public carrier.
: The problem OF rate-making Is the prob
" lem Of commerce: the problem of compro-
: missing the daily struggles going on be-
d tween the great trade centers OF the coun.
= tries II extends further than 10 the mere
u settlement Of the price TO be charged by
p one railway In carrying a ton OF freight
II enters into the very essence OF our hap
piness and prosperity as a country The
. more IL is studied the more complica ted
j the problem seems TO be. and the more sure
1 am that the ate-making power is safer
in the hands Of the railroads than II is IN
any body Of men appointed for that pur-
pose.
He closed with the declaration that whiIs
he considered the railroad more ca
pable of regulating rates, he was willns
g TO permit the experiment OF "A rate-mal5in,
, commission 10 be made because OF IA,
e popular demand. lie added:
+ l am absolutely and uneQuvucally op
e posed 20 giving them that power without 4
Ia provision for broad and general revision
10 which the shipper and carrier can an.
lBSA when the rate ess slSnatea u saLskT