Omaha daily bee., 1906-02-13

ment of a railroad commission court, or.
as in France and Germany. by the simple
operation of direct government control, the
conclusion on this point is the same. 1t
is proved beyond a doubt that personal
determinations can be utterly extirpated,
and if it has been in other countries it can
be done here by suitable legislation.
On the second point of excessive rates
the experience of other countries demon
strates that whatever good effects govern
ment rate making has had 1t has not low
cred rates, but, on the contrary, has made
them not only higher but inelastic. Where,
as in Russia, rates are low, although not so
low as ours, the railroads are run at a
loss and the loss is maze good out of the
pockets of the taxpayers In England.
with ma ximum rates fixed by Parliament,
in schedule and the prohibition against
raising rates without the consent of the
s0a fh nd rates rates are
cline in accordance with the fall of prices
or indeed, in any substantial degree.
rates are so per cent higher than ours and
show the same quality OF infiexibility and
the same lack of adaptation to changing
conditions which We find in England. We
have the lowest average freight rates in
the world, and yet our railroads are run
expense to the taxpayer. Government rate
making in this country-directed as 1t can
only be against place Determinations and
excessive rates-therefore, If the experience
of all the rest OF the world is OF any value
and | regard IL as conclusive, would either
not reduce the rates at all Or Il IT. reduce ,S
profits of the, roads and lower the. wages
of those employed upon them, unless we
ment ownership. with the roads run at
loss and the people taxed to carry them on.
DISCRIMINATION Between Places.
The third and last point is that of dis
elimination between localities That dis
ordinations exist under our system. which
work injustice, 1t would be folly to deny.
but it would be still greater folly to es-
tablish new series of discrimination,
working a larger injustice. in the hope OF
curing the original inequalities. Whatever
attempt to remedy place dis snd
than the disease. The experience of the
world leads me to- doubt most seriously
view to curing place determinations, can
be effected without bringing a change for
the worse; but If II is to be tried at all: it
ought not to go beyond the fixing of a
maximum rate by the commission, with
the most absolute protection against hasty
or prejudiced action through provisions for
an appeal to the courts of the country.
This certainly is as far as We can safely
go.
Mr. Lodge combatted the idea that the
railroads are owned by a few men and
that they are inimical to and independent
of all other interests. He said
We all want to see the settled and estab-
lished sections of the country thrive, but
to the railroads the well-being of such
sudden and ill-consdered revolution in our
methods of railroad management would
and probably earry disaster to our trsds
and commerce in a degree which 1t is i'm
possible TO estimate.
For these reasons, he added, we should
proceed with the utmost care in railroad
legislation. and continued:
We should have proper legislation in
regard to 1.-THE railroads: there should be
government supervision and regulation; We
should stop the intolerable abuse OF re-
bates or Determinations between persons,
because, il we do not. we may ind our,
selves precipitated into that worst OF all
is equally essential that the legislation we
undertake should not itself lead to govern
ment ownership, the dangerous pitfall we
legislation should succeed, but 1t can only
succeed by being effective against the evils
the utmost a care n those arecfons wSere
experience has shown that some OF the
remedies now proposed have introduced
furious than those which it was sought TO
remedy.
Some Possible Dangers.
Pointing out possible dangers TO the pro-
posed legislation. he said the first of these
is found in the possibility OF failing 10
provide effective remedy against per-
sonal Determinations That which is 10
be feared as to rebates" he said. rs that
the law will not go far enough and will
not be intelligently effective"
He suggested that the power delegated to
a commission should not go beyond that OF
fixing maximum rate on freight.
Mr.. Lodge expressed the opinion that
there should be ample provision for review
OF the findings of the commission by the
courts.
He concluded:
There seem TO be now prophets Of a new
dispensation, who wish 10 depart from the
line marked out by the president in his
message and accepted in the house bill OF
last year by removing. so far as possible
| from the proposed law all proper provisions
| Tor review by the courts. This seems to
me TO strike at the very heart Of the