The state herald., 1906-04-06
RAILROAD RATE QUESTION AND
The PRESIDENTS POSITION

tion affect the country?
1t permits the railroads to dictate
to a considerable extent what towns
shall do the business. For instance,
the discrimination against Spokane.
already cited, has resulted In driving
out Of business there the Pacific Coast
Pipe Company that established plant
In 1900. BY a slight change In the
schedule the Louisville 4 Nashville is
able to divert cotton shipments from
the Port of Savannah to that OF Pensa-
cola. Thus the railroads have the
power of life and death over many of
the smaller cities. Furthermore, a
discriminatory policy that may help a
particular railroad may be injurious
to the whole country. 1t is rightly
contended that in such important mat
ters involving the fate of whole COM
munities an appeal ought to lie to an
Commerce Commission.
Are freight charges in the United
States generally regarded as too high
Undoubtedly they are, in many
cases, especially where road has .
monopoly. Thus, in 1903 rates on lum-
ber from Georgia to Ohio river points
were advanced cents per hundred
pounds. This meant $132,000 to Georgia
lumber dealers, and they protested.
Their contention was upheld by the In
| terstate Commerce Commission and
the Circuit Court. But as an appeal to
| the Supreme Court was taken they are
still paying $132,000 a year above q
just rate.
About what percentage OF com.
plants refer to rates as unreasonable
In themselves?
or 1853 cases decided by the Inter.
state Commerce Commission only ten
per cent. had to do with the unreason'
ableness of the rate, while forty per
cent. turned upon Determinations.
Why is It anybody else's business Il
railroad wants TO charge one man
less than 1t charges another
Because the railroad in a peculiar
degree is public servant. 1t owes its
very existence to the state which per
mits 1t to seize the land necessary for
its track. Therefore the state has the
right to compel 1t to treat all persons
alike and to regulate its charges. A
grocer may sell sugar at cents a
pound to one customer and at 10 to
another II he likes, for he has no spe
cial privileges from the state. But the
railroad is differently situated.
II railroads get their rights-of-way
from the states. why can the national
government interfere?
Because large part Of the traffic is
Interstate commerce which the consti
tuition gives Congress the authority to
regulate.
What relief has shipper from un.
! Just treatment under the existing
laws?
J He may appeal to the Interstate
Commerce Commission. which. after a
hearing, may order the railroad to
desist from maying what It regards
rs an unjust charge. Ii cannot fix
the rate to be charged. and since Its
decisions are usually taken into court
years must pass before they become
effective-the shipper meanwhile pay
Ing the old rate. In cases of secret
discrimination relief must be sought
from the courts under the Elkins law.
What does the President want To
have done ?
The principal changes which he de
sires have been embodied in the SO
called Hepburn bill which passed the
| House In January and is now before
the Senate. This bill recognizes the
Interstate Commerce Commission and
gives II authority when complaint Is
made not only to order rate changed
but 10 specify the maximum rate that
may be charged.
But could not the roads practically
nullify the commissions orders by
fighting In the courts?
No, for the bill specifies that the
new rate is to go into effect within
thirty days after the order is issued
unless court interferes. and tho
President favors a provision prepared
by Senator Spooner compelling the
railroad TO pay into court the differ
ence between It's charge and that or
dored by the commission. This money
would 20 to the shipper II the final
decision were In his favor. Such pro
vision. Il is believed. would prevent
the railroads from fighting the com
missions orders except when they
really believed them unjust.
How would the proposed law rem
edy evils resulting from secret dis
ordinations?
The commission is given large pow
ers to regulate private car line and
/ switch arrangements, icing charges
and most of the other eyasive practices
now indulged In. Besides. the railroad
that gave favored shipper cut
rate would risk having the commission
decide that all business must be nc
cepted nt the same rate.
What Is the attitude OF the railroad
interests toward the pending measure!
Tncy do not hope to prevent the
enactment OF the new law. But they
are fighiing to have II amended SO
that every ease decided By the commits
sion may be taken into the courts on
It's merits and heard from the begin
ming. That would insure sufficient
delays. practically. to nullify the law
President Roosevelt and his friends
are hghting TO have the court reviews
limited In scope.
what ls the lineup In the fight?
The railroads. aud many big ship
pcrs who Ee, unfair favors are on oac
side. The public In general is on ,hc
other
ACKNOWLEDGEMENTS