The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-03-11
The Ethics Of Rate Regulation.


gests the idea that should be upperfnost
in the minds OF the senators from South
ern States when the Hepburn bill is taken
up FOR debate and amendment. They can
not be too careful In their scrutiny OF the
bill and OF all amendments that arc Of
fered to sec to Y that power Is not
might be used to the disadvantage of the
Southern States as compared Switli other
SECTIONS OF the country.
That the Hepburn bill will give this
power, unless II is very radically changed
before It's enactment, seems 10 be beyond
question. The extent to which II would go
Dolliver, who Is looked. upon as its
foremost champion in the Senate, IN his
fse e or o he tine rate
case, in which the commission had at.
tempted to change rates from Cincinnati
and Chicago to southeastern points. 50
ny TO give to those cities advantages over
~ hmond I'D other Eastern cities, dec'nr-
Ing Tint .'the court was right in think
nv that u Congress had intended to con-
said.
dent Of. this. problem would do that If
ne could. and no Congress. In my opinion,
velopmont of widely separated, regions.
the interests OF competing markets. the
growth of rival scapOrts contending for
Of the railways. Which have o grown gro IN, up
with them, and. the natural laws of BUSH
ness which have created them. and stake
tn their worldly prospects ON the decision
ary were raised t2 correspond with y he
size ,sS,,,G q sue such Job. power Ike that
han human 10 Wsao # i did w not ea
us into sectional conflict. based on COM
mercal advantages. 1t Is need
less Therefore for me t. say that tho
undertake to do any such thing
But is Mr.. Dolliver right as to what
the Hepburn, bill proposed to do? Is 1t
commission to exercise exactly the power
that, In his opinion. would be attended
With grave danger OF sectional conflict?'
studied.the Hepburn bill arc correct. that
measure, In. It's present form. would con-
fer upon thu Interstate Commerce Com
order as was made, in the maximum rate
case. Mr. .Dolliver's study of the bill he
was defending must have been very. su.
o f1r It j. t.
the Hepburn bill with i the S record of Of
the maximum rate case and reach any
other conclusion than that this bill would
give The commission power to re-n1ake
its order in that case and to divert bust
ness ness, from on Richmond and other Eastern
The Hepburn bill would give power to
the commission to prescribe "the just and
reasonable .and fairly remunerative rate
or rates. charge or charges, to he there
| mum TO be charged whenever It finds
that rates complained of ARE unjust or
unreasonable. or uniustly discriminatory,
or, unduly preferential, or prejudicial.. or
otherwise in violation OF this act This
act Is the present Interstate commerce
law which the Hepburn bill proposes to
amend. 1t would leave unchanged tho
third section OF this act which makes It
unlawful for a common carrier ito make
or give any undue or unreasonable prefer
enee or advantage to any particular per
subject any particular person. or
| locality, to any undue or unusual
| prejudice or disadvantage in any respect
| The complaint in the. maximum rate
| case was that the relation of rates to
| Southeastern territory was such as to be
unduly prejudicial to Cincinnati and Chi
/ cago as compared with the rate from
| Eastern points. The commission sustained
the complaints and after setting forth
tables OF maximum rates; ordered the
| cease and desist from charging higher
| rates on the traffic embraced In the num-
| bered classes from those cities. respec-
| lively. than those in the two, preceding
| tables. and to make all the necessary re-
| adjustments In their tariffs"
1t will be seen that the Hepburn bill
\
/ commission. Responsible to no one but the
I President of the United States. to decide
( what constituted an undue or unreason-
/ able preference or advan, age 10 any par
| undue or unusual prejudice or dlsadvant-
| age to any locality. II Mr.. sDolliver could
have his way he would deny the right
commission. to apply TO the courts for Its
| review He would give to this political
| body absolute and despotic powers to de-
vn1a atal
| tages to be enjoyed by each rival locality.
| Under such law exactly the same COM
\ plant could be made that was made In
| the maximum rate case and the commits
sion could issue Just such an order as
was issued in that case. Whe;i the order
| in the maximum rate case was issued 1t
| lied the commission to fix rates. The
| Hepburn bill would legalize such an order
| and, unless 1t should be amended so as
\ to provide for the broadcast possible judi
cial review. there would be no way in
/ which the order could be set aside unless.
! possibly, the roads leading from Chicago
| and Cincinnati might be able to convince
the courts that the rates ordered by the
| commission were so low as to oonfiscate
! their property. The business OF merchants
In Richmonds with points In the South
| but these merchants could not institute
| proceedings for judicial review and neith
er could the roads leading from Rich
to provide explicitly for the Institution
! of proceedings by any one directly or In
directly affected, whether a party to the
sion or not. and 1t would have to be so
broad as to enable the courts to con-
slider the reasonableness and Justice. not
only of the, rates ordered by, the commits
plained Of and sought to be set aside. $50
Every Senator from the South Ghoud
| insist on such amendments to the Hep
| burn bill as would make 1t impossible
| for political commission, n majority
Of the members Of which would Inevitably
be Northern and Western men, to exer-
| else despotic power over the commerce
| of this section. Better. by far, would II
| be for them to resist to the uttermost
every propositionto confer the rate-mak-
| ing power on the commission and to favor
| legislation under which all questions as
to the rea q Of rates would be
who has. rlooked, into the question knows
| that 1t Is possible to frame legislation
! under which complaints as to eXorbitant
and unreasonable rates could be passed
| upon by the courts and under which every
| charge in excess Of a reasonable rate
could be- summarily enioned Bills to
| 1tsl, ih,,,a