The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-05-16
A QUESTION OF METHOD.


In his annual report delivered before
the convention of the National Associ-
alton of Manufacturers President D. NJ.
Parry outlines in a clear and forceful
manner the difference existing between
the two sides in the controversy which
has been going on in the halls of con-
gress on the question of government
rate making. Mr.. Parry says:
The country has witnessed during the
past year a very remarkable discussion
on the subject of rate legislation. The
principal point at issue is that Of gov
eminent fxation of rates. The rebate
evil plays no important part in the con-
trOVersy because it could exist as read
lily under a system of government rate
making as under the present system
and because further there is no differ
ence Of opinion regarding it, the entire
country being practically unanimous on
the proposition that the evil of fayOring
some shippers to the injury Of Compel
ing shippers should be summarily dealt
with by the government, It is interest
ing to note that a number of rebate
cases have been successfully prosecuted
in recent months, thus tending to show
that there is nothing particularly the
matter with the present law, although
1t seems something might be said re-
garding its reimbursement.
There is not only no controversy over
the question of stamping out the rebate
evil, and that by drastic enactments If
need be, but also there is no controversy
over the proposition that the railroads
must be made to live up to their COM
mon law obligation not to charge unrea-
sOnable or discriminating rates Of any
kind The method to be pursued in ac-
complishing this end is what has oc-
casioned the battle Of the rates that has
been Waged so strenuously in and out
OF congress. On the one hand are the
radicals, who assert that the railroads
have by combination eliminated COM
petition and are now welding a dan
gerous power Of taxation over industry
which power is to be curbed only
through government rate making or at
least through the rates initiated by the
railroads being made subject to mOdifl-
cation and veto by an administrative
board. They desire this power Of gov
eminent rate revision exercised with as
little interference from the courts as
| possible, insisting that the courts should
4 be appealed to only on questions of law
or to determine whether the board is
violating the provisions of the United
| States constitution as to the confisca-
| ton Of property What they wish par
/ ticularly to avoid is q hearing in court
on the merits Of cases in which the
/ board substitutes new rates for those
rates declared by 1t to be unreasona bic
! or discriminating. Opposed to the radi-
/ Gals are the conservatives. who believe
that all corporations, including even the
railroads, are entitled to right of trial
by court on charges Of wrong-doing
brought against them. They assert that
/ the dissemination of a question whether
a rate Is unreasonable or discriminating
t is essentially a judicial function, that
/ the interstate commerce commission
should be an investigating and prose-
cutting agency, taking charge of all COM
plants preferred by shippers at the gov
/ ernmenfs expense, and that laws should
be enacted which will insure expeditions
/ handling OF all cases by the commits
sion and their prompt adjudication by
/ the courts. They also assert that
/ bureaucratic rate making is sociaHstic
/ and foreign to our Institutions; that il
IS IN all likelihood unconstitutional:
that It IS not justified by conditions, and
that If would be certain to result in far
greater injury to industry than the
evils now justly complained Of They
declare that the alleged unrestrained
try's industries is amply disproved by
the fact that the rates are at the pres
ent on the whole the lowest in the
world, although prices in this country
are generally the highest in the world
and by the further fact that railroad
/ capital earns on an average only about
5 per cent. They assert that as mat
ter Of fact railroad rates are now de-
pendent upon the competitive laws OF
trade and that to substitute system OF
government rate making would be to
make the rates dependent upon the po-
/ EticaI power Of various cities and sec
! tio4s. thus threatening serious readjust-