Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-08-20

as the binding of the arteries or veins
leading to member of The human
body destroys its life.
Failure of Old Interstate Commerce
Law and Causes.
The result of twenty years opera
ton under the interstate commerce act
of 1887, passed to restrain abuses of
unjust discrimination and unreasona-
bleness of rates, was that the railroads
came TO regard the action Of the COM
mission 1t created as of no Importance.
The delays, due to the necessity of re-
sorting to the courts to try out the
merits of every order of the commits
Sion, before it became effective, made
the remedy Of the complaining shipper
or locality so slow and burdensome
that in contested cases, it was no
remedy at all. The commission was
not, under the old act, authorized to
fix reasonable rates. 1t could only
say that particular rate was unreason-
able and order a railroad to change
its rate and make II reasonable. The
railroad might fix new rate at any
thing less than the rate declared to be
unreasonable, and If the reduction
made was not sufficient q new action
new rate was also unreasonable.
President RoOseveIt's RecOmmenda-
tlOn-New Rate Bill.
Made aware of the moribund condi-
tion of railroad regulation under the
old law and of the widespread abuses
which prevailed in railway manage
ment, President Roosevelt recon-
mended that the powers of the COM
mission be largely increased by first en-
abling the commission to fix rates and
second by making its order effective
against the carriers without resort to
courts to compel performance. He
asked that 1t be made an administra-
tive tribunal with real power. This
was done by the passage of the rate
bill in June, 1906. The new act enables
the commission to fix rates and gives
efficacy to all of its orders by provd-
ing that they shall go into effect thirty
days after they are made, unless sus-
pended by an order of court, and fall
ure to comply with them Is punishable
by fine of $4,000 a day during the
delinquency. Express companies,
sleeping ear companies, and oil pipe
line companies are brought under the
jurisdiction of the commission as COM
mon carriers.
The new law requires the publica-
lion Of rates charged for such inclden-
tai services. Railroads are compelled
to furnish cars without discrimination
for the movement of traffic. After
May 1908, they are confined in their
business strictly to transportation by
a provision fOEbidding them, after that
date to transport for themselves any
thing but what Is intended for their
use as common carriers. The new
law makes radical changes In the mat
ter OF publication of rates. Under the
old law, by means of what was called
the midnight tariff" a railroad COM
pany gave favored shippers advance
information of a contemplated reduc-
tlon of rate and Immediately restored
the old rate when these shippers had
profited by It. Thirty days notice is
now required Of any change In the
rates unless the commission, for good
cause, modifes the requirement.
Resembles National Banking Act.
Again, the new law enables the COM
mission to prescribe a uniform system
of accounting for railroads. Under the
old law the commission could call for
report of the railroads; might ask
questions OF railroads, but II had no
way TO compel a compliance with Its
request. Under the new law, annual
reports must be made under oath, and
penalties are prescribed for failure to
file them. The carrier Is forbidden to
keep any other books than those pre-
scribed. The commissions authority,
under the new law, Is thus In many re-
spects like that of the comptroller of
the currency over national banks,
which has the confidence and approval
Of the country.
Great Opposition by Rallroads--
Their Arguments Against Bill.
Never before was there such q
united opposition by the railroad In
terests to any national measure as
they Instituted against the rate bill.
The objections urged against II
were three: First, II was said to be un
unwlsc departure from the lalssez
falre doctrine of as little doctrine as
possible. and was a long step toward
socialism and government ownership.
Outraged Public Opinion Carried
tile Blll.
The revelations of Infidellty to trust
obligations In the Insurance investlga-
tions In New York, the fraudulent dis
ordinations In the traffic Of the coal
carrying roads disclosed by the in
quiry made by the interstate commerce
commission and the disclosure OF Sc
cret rebates on an enormous scale
granted the Standard oil company by
The railroads In the report of Mr.. Car
| field. as commissioner OF corporations.
overcame such a gpeciOus argument,
created a strong public opinion In IA
vor OF a radical remedy against All
dishonest corporate practices. and held