Los Angeles herald., 1906-03-01
STRONG PROTEST AGAINST
PASSAGE OF MEASURE
Declares 1t Would Fail Utterly to
Remedy Evils Complained of and
CharacteriZes II as Rev.
dictionary
By Associated Press.


pared speech ON the railroad rate ques-
ton. His speech was protest against
any general legislation on the theory
that the existing Elkins law could be
so extended as to make it answer all
the requirements. He did not fail,
however, to point out what he con-
sidered the defects of the Hepburn
Dolliver bill. and he made the declara-
ton more than once that it would fail
to remedy. the evils complained Of
Mr.. Foraker conceded that some evils
exist in connection with the railroads,
but urged that all of them could be-
more effectively met by amending the
Elkins law than by passing the pending
bill. He announced his regret at diff
fering from the president, but said he
could not see his way clear to pursue
any other course. He gave q general
review of the history of the railroad
development of the country and passed
to the evils of the system, which he
said are necessarily incident to the up
building of so vast an interest.
Foraker's Attitude Outlined
Mr.. Foraker's attitude toward the
pending railroad rate bill was correct
ly outlined in his first paragraph. in
which he said of the bill: ut is so con-
trary to the spirit of our institutions,
and of such drastic and revolutionary
character, that its effect is likely to be
most unusual and far-reaching."
He discussed the railroad evils as of
three classes-excessive rates, rebates
and determinations. He found little
to complain of under the first heading,
but said that he thought a prompt and
effective remedy for excessive charges
should be provided.
more serious evil he found in re-
bates, and he traced the present extern
sive railroad consolidation to the fact
that the supreme court decisions
against pooling had left the roads with
out protection from the rebate system
except to resort to some general I'M
derstandlng. Referring to the Elkins
law he said:
There has been no serious attempt
to enforce this law to prevent dis
examinations as to localities, but a
glance at its provisions will suffice to
show that it is as broad, direct, ex-
plictt and efficient to remedy that kind
of an evil, whenever it may exist, as
1T has been found to be as to personal
determinations. That the law has not
been tested in this respect is not due
to any fault of the law. but because
no one has seen fit to invoke it,
Announcing his own position, Mr..
Foraker said:
believes IN Court Plan
Il believe in the court plan as con-
tradistinguiShed from the rate-making
plan, not alone because it is much
simpler, much more expeditions, and
without expense to the shippers but
because in addition to all that it avoids
all legal and constitutional questions,
While the Matchmaking plan as set
forth in THIS bill encounters a number
of such questions that are of the most
serious chatacter and some of them, in
my judgment, fatal
Regarding lthe right of congress to
make rates he said:
THE supreme court has never yet
passed on that question and there are
many eminent lawyers who are of the
opinion. that the court will hold, when
it does decide the question, that con-
gress does not have that power.
'Manifestly, it is utterly impossi-
BILE for congress by statute to fix all
the rates for Interstate commerce. 1t
must resort to some plan under which
it can avail itself of the help of some
kind of board, commission. tribunal
or agency. But when it undertakes
to do this it must take heed lest it
undertake to do it in such way as to
delegate legislative authority, and
thus make it's effect unconstitutional
for congress to delegate legislative
power.
Supreme Court Rulings
at is true that the supreme court
has upheld statutes enacted by the
states, comforting this power on state
committees OF commissioners, and that
the supreme court did indulge, in the
maximum rate case and perhaps in
other cases. in the character of ex-
pressions referred to, but il is also
true that the question now presented
was not presented to the court in any
of these cases. And it is also true that
the supreme court has never yet up
held a statute comforting power to
make rates on a railroad commission
as to that particular point which did
not make the power so conferred pure
ly administrative in character, or
which was not enacted by virtue Of a
constitutional provision that author
lied such legislation"
The speaker conceded that as con-
gress had the power to fix rates a COM
mission can be created and it can be
utilized only under some such statute
as those enacted by the Legislatures of
Iowa and Wisconsin, when, in 1873 and
1874, they passed their respective
statutes classifying the railroads ac-
cording to earnings and providing that
the officials chosen to execute them
should by computation, taking the
classification as a basis, determine
what statutory rates should apply
THAT was administrative" continued
the speaker. THE congress could also
utilize the commission in the fixing of
rates if it should see fit to resort TO the
policy of a mileage basis"
= Question of piffercntiaIs r.
Mr.. Foraker also commended that the
enactment OF the proposed law would
contraveIle section $ of article / OF tho
constitution, prohibiting preference
in favor of the ports OF one state over
those of another state. He cited the
differentials allowed in favor of Phila-
delphia and Baltimore, and Of New
Orleans and Galveston, and admitted
that these differentials are essential to
the diffusion of the export traffic, but
added that the differentials conflict
with one of the great purposes of those
seeking the kind of legislation that has
been proposed to secure to each locality
it's own particular rightful advantage
of location and thus avoid the prefer
ring in the making of rates of one
locality to the prejudice of another.
IF we invest the Interstate commerce
commission with the power to make
rates." he said, at must exercise that
mower subject to this prohibition of the