The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-26
ONE EFFECT OF THE RATE Law
SCHEDULES FILED SHOW REDTC-
TION IN FREIGHT CHARGES.
The commission VIII soon Begin Hearings
on Complaints or shippers Of Jnrea-
sOnable charges anu DETERMINATIONS
Against individuals and communities.

WASHINGTON, Nov. 25.-The railroad
rate law passed at the last session of Con-
gross has had a wholesome effect in the di-
rection Of reducing charges for the trans
portation Of commodities in interstate COM
nerce. Since the new law became effective
on August 20 schedules to the number of
ls3OO?. both passenger and freight. nave
been fled with the Interstate Commerce
commission. OF the total, 81 900 schedules
relate TO freight traffic, embracing hun
dreds of thousands of single rates. II was
said authoritatively that so per cent, and
probably IS per cent. OF the rates made since
August IS we're reductions of previous
charges. In nearly every instance where
application has been made for permission
20 change a rate upon less than thirty days
notice a desire to reduce freight charges
prompted the railroads 10 make such appli-
cation.
There has been a great deal of gossip re-
Gently 70 the effect that the Interstate Com
merce act will be amended further at the
coming session of Congress. 1t is not
known, however, that President Roosevelt
contemplates recommending changes in
the law until the statute has had q fair test,
and the understanding lis that he will not.
As the law has been in operation a few
months only, doubt is expressed here that
q serious effort will be made in any quarter
10 reopen the question this winter.
The Interstate Commerce Commission
NAV recommend in its annual report that
authority be given to it to place a valuation
on railway properties of the United States,
but il is hardly expected that Congress will
grant such authority at this time. Valua-
ton Of the railroads by experts is urged o
the ground that it is impossible for the
commission to determine accurately what
are fair or reasonable rates until exact in
formation is at hand as to the amount of
money that is invested in the railroads OF
the country. The valuation plan il one OF
the pet hobbies Of Senator La Toilette, the
prince of grand stand reformers.
Early next month the commission Will
begin hearings in tho complaints OF shippers
which involve allegations OF unjust or I'M
reasonable charges and determinations
against individuals or communities. The
commission up to this time has been en-
gagged largely in the work of preparing
rules and regulations in an effort to educate
shippers and carriers alike as TO the meaning
Of the various provisions OF the law or what
will he expected of them under the law.
From the present indications 1t will
probably be several months before the
rat law is put to the test OF judicial pro-
odure in ths courts and the country really
kAN
Federal Constitution, can exercise the rate
making power. The commission has been
accused of proceeding with a view to put
ting Off a decision on this issue, but under
an order just made it will soon begin hear
ings in a case involving the mooted CUES
tions. This is the complaint OF the Texas
Cattle Raisers' Association against nearly
every railroad in the West, in which II is
allie ged that excessive rates are exacted in
the transportation of stock from the ranges
to the Northern feeding grounds n from
the feeding grounds to the packing centres.
The rates in this case were subject TO re-
vie W by the commission a year or so ago and
a de cision was handed down that the rates
complained of were unjust and unreason-
able. The case was reopened under the
new law. which gives the commission
powers il did not possess under the old.
Il is asserted by men here who know that
If the case goes against the railroads. II
will result in sending to the United States
Supreme our the question OF whether
Congress has the power to confer upon a
Government body authority to determine
what are Just and reasonable rates.
Great progress has been made by Prof.
Henry c. Adams, 81 atistician of the com
mission, in the work Of devising a system
OF uniform bookkeeping, blank forms,
Classification of accounts, methods OF max
ing reports, &C, such az Is required OF the
railroads under the law. He has sought the
advice of railroad accountants in this mat
ter, and the indications are that an account
ing system will be evolved satisfactory to
both the Government and the carriers.