Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-09
s SPECIFIC RATES.
DISCUSSION AT CAPITOL OVER A
POSSIBLE AMENDMENT.
Maximum Rate Adherents object to
Absolute Rate-Fixing Power
The Hepburn Bill.

There is much discussion at the Capitol
as TO the possibility of an amendment being
offered to the railroad rate bill empowering
| the interstate commerce commission to fix
| absolute and specific rates. instead of a
maximum rate, as provided in the Hepburn
! bill. Senator Bailey has intimated that this
| power is necessary to properly round out
the railroad legislation. and other senator's
are believed to favor this proposition.
On the other hand such legislation will
meet with violent opposition from those
who have been opposed to any change in
the power OF the interstate commerce COM
mission, and, as expressed today. will not
| be favored by several senators VINO are In
favor of the Hepburn bill itself. this latter
group taking the ground that such an
amendment would greatly increase the
probability OF the Supreme Court declaring
the law unconstitutional and wipine 1t of
| the statute books.
In the talk for and against the suggested
power TO fix absolute and specific rates, the
much discussed question of fixing the rela-
ton of rates is constantly cropping up, ana
speaking of the subject today, one student
voiced the opposition to the suggested
amendment in this way:
The House committee expressly aVoldeu
| giving the commission authority TO fix ap-
| solute rates because Ii was feared that 70
do so would make the bill unconstitutional l.
| and for the further reason that, with inc
| exception of two or three men, the mem
| bers of that committee We're opposed 10
| giving the commission authority TO TX tue
relation of rates. The remarks OF Senator
| Deliver on the maximum rate case ana ms
declarations to the unWisdom or giving
| to the commission the power that IL at
! tempted to exercise in that case malcdee
| that he is in line with the House commit
in
| jurisdiction over the relation OF rates
| Whether Mr.. Dolliver Is correct In beheV-
! ing that the commission would not nave
| that power under the Hepburn Bill or not,
there could be no question as to the au-
tLcrity TO fix the relation OF rates peihs
given If the commission should be empoW-
cred to fix absolute rates.
Relation of Rates.
LAS long as only maximum rates can pe
fixed there is nothing TO prevent any rah-
road from reducing any rate, whether II
is one that has been passed upon by the
commission or not. 1t is commended, for IN
stance that if the commission should Or
der a reduction in the rates on cotton
piece goods from New England mill points
TO Chicago fixing maximum rates that
should not be exceeded, there would be
nothing to prevent the roads leading from
southern mill points TO Chicago from meet
ing the reduction and maintaining the old
relation of rates, even though maximum
rates from these southern points might
also have been fixed by the commission.
The roads from the southern points might
even reduce their rates below the level at
which they would be profitable in their
efforts to enable the mills in their section
to meet the competition of the New En-
gland mills; there would be nothing In the
law to prevent them from doing so. II,
however, the commission could make abb
solute rates it might fix the rates from
barD n q level
that could not be changed without new
order, and. in that event, the southern
roads would be unable to meet reduc-
ton in the rates from New England
whether it might be made voluntarily by
the roads leading from this section or
whether it might be ordered by the COM
mission.
THAT it is not impossible that the inter-
state commerce commission. II 1t had the
power, would change the relation of these
rates on cotton piece goods to Chicago so
as to favor the New England mills, 1t is
contended, is shown by the recent address
of Commissioner Prouty before he Mas
sachusetts state board of trade al Boston.
Mr.. Prouty was endeavoring 10 refute the
impression that rate making by the COM
mission would be inimical to New England.
He cited several illustrations of rates that
were not favorable 10 New England, among
them the rate on cotton piece goods from
New England to Chicago, in comparison
with the rate from Atlanta TO Chicago.
Both of these rates are the same, 90 cents
a hundred pounds
He pointed out that cotton piece goods
formerly took first-class rates, and argued
that the measure of advantage given to
these goods might be indicated by the diff
ference between the ffrst-clasS rate and the
rate on cotton piece goods. He pointed
out that the first-class rate from New Eng
land to Chicago was - cents, showing a
concession of 20 cents on cotton goods
from New England, while the frst-class
rate from Atlanta to Chicago was S1.47,
showing a concession of 90 cents to the
southern mills, from which it appears
said he, that the southern line discrim-
mates ninety-two points in favor of the
southern mill, while the New England line
discriminates twenty points in favor of the
New England mill" Mr.. Prouty did not
promise his New England audience In so
many words that If the commission had the
power It would give New England mills
more advantageous rates to Chicago than
those enjoyed by the southern mills, but IT
Is contended that his language was such as
to justify his hearers in believing that at
least member of the commission stood
ready to change these rates so as to favor
New England If the commission should be
given power to do so.
Its Power.
at is pointed out that If the commission,
by fixing absolute rates, could change the
relation of rates on cotton piece goods so
as to give to the New England mills ad-
vantages over those in the south 1t could
change rates on other commodities in the
same way and could determine the relative
advantages TO be enjoyed by rival produc-
ing localities and by rival markets through
out the United States. This, it is pointed
out, would lead to that danger of sectional
conflict that Senator Dolliver is so afraid
would be involved in giving to the commits
sion even the less degree of control over
the relation of rates that II attempted TO
exercise In the maximum rate case
1T is held that II the commission should
be given authority to make rates that could
neither be raised nor lowered without a
nevy order from that hody would have