The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-05-08
YEAR Of GREAT PROSPERITY
IN EVERY LINE Of BUSINESS

business. Any one who has informed
himself of the extent of the additional
powers to be conferred, and has read
the luminous arguments in support OF
the measure, will rismiss the notion
that any injustice is threatened or VIII
be lone the railroads. The present
law was enacted in 1887. and for ten
years, or until 1897, the power TO pre-
scribe rates was exercised by the COM
mission without protest, and during
this period there is no record or a
hardship resulting from the action Oh
the commission. In 1897 the power
of the commission TO prescribe a rate
was contested, and the supreme court
decided that congress had not con-
ferred on the commission the rate
making power, distinguishing
the judicial power to condemn an IN
lawful rate and the legislative power
to prescribe a rate. The judicial pow
or to condemn an unlawful rate was
expressly conferred in the act creating
the commission, but no express proVl-
sion conferred the rate-maklns pow
or. The court virtually admitted the
right of congress to confer the power
to prescribe a rate by saying mat IL
such had been the intent OF the act the
power would have been expressly
given. and there is nothing IN the
opinion to justify h assumption thal
congress is without such power. rue
this position is c~ontrOveted ana the
claim advanced that congress cannoI
confer legislative power, but thls 10
successfully met by the contention lhaI
TO clOtbe the commission with power
to name a rate is merely an admlhls.
trative function, and is incidental ana
nococcarv To effectuate the legislative
purpose.
Since the adverse decision OF the
court the commission has pursued the
nractice of suggesting a reasonable
rate in place of the unlawful rate con-
demned. and by the adoption OF us
suggestions in a majority OF cases the
railroads nave given to the recommen-
dations Of the commission the practl-
cal force of law. AS now constituted
there is no power in the commission
TO enforce it's suggestions, n II inc
ratas heretofore named had not been
remunerative the railroads would not
have applied them. In the llgnt ol
this experience there is every reason W
believe hat with enlarged powers the
commission would exer = au'hol-
itv with greatest moderation, anu
there is no reasonable ground TO lear
arbitrary action. Any rate prescrlpeu
bv the commission unde us auueo
mowers would have to return just COM
nensation to the railroads, and the de-
sire of the commission to MAINTAIN d
reputation for just and
ruling wild incline it to err against
the nublic and in behalf Of the rail-
roads because the courts open the re-
view and the railroads are better
equipped to defend their rights tnan Is
public.
One of the instances IN which the
railroads refused to adopt the sugges-
+ion of the commission is the VIII
mington case, and it may not be "ltn-
ont nroft to refer to this case as
exemnlifving the need for enlarglns
the MOVERS of the commission. IL Will
he recalled that Wilmington filed a
netition for Norfolk rates on western
products, and that the nearing uesel-
oped that conditions at wilmington
we're actually and potentially cohlpet!-
tive. and that Wilmington was practl-
cally as near the grain helds OIL .ne
west as Norfolk, while Wllmlns.on
rates were substantially double NOT
folk rates. After the most eXlausIi'e
hearing. and a d~eliberatlon
over two wears. the commission decld'
cd that a reasonable and just rate 1of
Wilmington would be 1876 per cenI
of the Norfolk rate, the percentage rate
then being about 200. Translated lnte
fo,1res in a specific case under TINS
ruling the rate on grain from Clncln.
natl to Wilmington would be Is -
cents ner hundred with the Nor1olh
rate at 10 cents. The distance IRON
Cincinnati to Norfolk is 7O6 miles
and from Norfolk to Wilmington Io'
ui1es The rate on grain from GIN
cinnati to Norfolk is now loc per Hun
droo and from Cincinnati to llmln
ton zoe per hundred. 1t IS ren1al no
hle that this differential shouio SUI
oxist h,,t it is more remarkaole Ind
40 discrimination should be
"A NV two railroad systems tnat "
no+ baul a pound of western proouct
10 Virginia cities while practlcally ai
western shipments for Wilmington gu
tor hv these lines. The lower the rat
fuom the west to Wilmington III
- tho business of the railroads
55otb incoming and outgoing, wnli
no onIv interest that these lines nav
in virginia cities is in their distriout
ing business. We are aware OF tn
contention that Wilmington lache III
volume of business to Justll! wv
rate hit this reverses the prlnciple y
n r~c The rate is the cause-vol
pl no effect. Give Wilmington To
rate and the volume will be forth tn
coming. Nor must we overlook tn
tect that conditions have SO cnange
since h ruling of the commission ths
What might AVE been a
hardship on the railroads tnen can
: not be urged in behalf OF the Atlan oI
; Coast Line at least, 1or TINS :
49, controls a through connection
~ voct and should be Il position I
T 'ho -. discrimination. That tn