Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-08-20
up the hands of those supporting the
bill
Second Objection--IncOmpetency of
Commission TO Fix Rates
Proved Too Much.

Second observation-disclosures of
Commission TO Fix Rates
Proved Too Much.
The second ground of opposition was
that a tribunal like the commission
was utterly unable to fix rates-that
the fixing of rates was such difficult
matter, that only the. expert traffic
managers of railroads were competent
for the work; that each rate was so
connected with every other that II was
impossible for a body of laymen to
reach safe and just conclusion in re-
spect to any one rate, without creating
hopeless confusion. This argument
proved too much. If the commission
could not fix rates, then neither 1t nor
a court could safely determine whether
rate was unreasonable for exactly
the same expert knowledge was needed
TO say that rate was unreasonable
as to say what was a maximum reas-
enable rate.
Constitutional Objection by Railroads
Without Weight.
The third and final objection was
that the law was invalid in that con-
gress was thereby delegating its legis-
lative power to another body, and was
violating the general constitutional
rule that delegated power cannot be
delegated. The rule has an exception.
There may be delegation of legislative
power where the purpose in the original
conferring the power can be SUBJ
served only by its delegation TO an
agent 1t is admitted that the consti-
tuition gives congress the power to fix
rates Obviously, howeve,, it is inn
possible for congress as body to
spend the time and labor 20 do So If
the power Is to be exercised at all,
/ practically 1t can be done through a
tribunal or an agency Ike that of the
| Interstate commerce commission.
Hence congress may delegate the
power under proper Legislative limita-
tions ana rules of decision.
Small Vote Against the Bill
The opponents of the bill were not
able with these objections to muster
more than seventeen negative votes in
the house, of representatives, or three
votes in the senate.
Opponents of Rate Bill Now BelittIc
IL and Praise Elkins Bill. I
The opponents of the measure con-
tinue to denounce it, but now instead
of pointing out its disastrous effect,
they say IL is failure and that in the
year since its passage, 1t has not
helped a single shipper. They insist
that the only effective and all-suff-
cient law to regulate the railways is
the Elkins act passed in 1903, and
that this IS shown by the fact that all
the prosecutions in which convictions
have been had against railway COM
panies and favored shippers in the
last two years, have been under the
Elkins act. and not under the rate
bill.f Let us look into the facts in re-
ia al 1nf -
prosecutions which have been insti-
tuted have been criminal indictments
against the Sugar trust and the Stand
ard Oil company, and certain railways
and their agents and officers for taxi
ing and giving secret money rebates.
They could not have been brought un-
der the rate bill, because the acts
prosecuted were committed before the
passage of the rate bill.
Effect of Ell1lns Bill on Existing
Criminal Prosecutions Was to Save
Rebate Givers and Takers From Jail.
1t is true that these prosecutions
were instituted under the Elkins act,
but It Is also true that had the El-
kins bill never been passed, the same
acts could and doubtless would have
been prosecuted as giving and receiv-
ing unjust discrimination against the
persons committing them under the
amendment to the interstate commerce
act of 1889. which the Elkins act sup
planted.
Railroads Favored EllSins Bill Becaus
OF Abolition of Jail Penalty.
It is we'll understood that the Elkins
bill was passed without opposition by,
and with the full consent of, the rail-
roads and that the chief reason for
this was the elimination of the pen
itentiary penalty for unjust dlscrimi-
nations. Experience has shown that
a mere fine is generally not enough to
deter a corporation from violation of
the law because it then becomes a
matter of mere business speculation.
The Imprisonment of two or three
prominent officers of q railway COM
pany, or a trust, engaged In giving or
receiving secret rebates, would have a
greater deterrent effect for the future
than millions in fine.
Rate Blll Restored jail Penalty.
In the rate bill, congress amended
the Elklns bill and restored imprison-
ment as part of the punishment for Sc
cret rebates. Had the rebating and
dishonest practices of the railroad
companies and the trusts, been as
clearly known to cOngf ess and the
public, when the Elkins bill was con-
sidered, as they We're when the rate
bill was passed, the Elkins bill would
not have passed so smoothly.
II the Rate Bill Is Ineffective Why
Such Railroad Opposition?
If the rate bill was likely to be a
failure and to accomplish nothing In
the regulation of their business, the
query naturally arises why did the
railroads spend so much money and so
great effort to defeat It? Why was IL,
If II had no effect, that in the interval
between the time of Its passage and
its going into effect, there were filed
with the interstate commerce commits
sion more notices of reduced rates
than ever had been filed In the pre-
vlous twenty years of the life of the
interstate commerce law?
Good Eject Of Rate Bill Naturally
Not Shown In Statistics.
The rate law has not been in opera.
tlOn year, and the beneficial results
from its operations though clear, are
not ready to be presented In a statistl-
cal array. Moreover, the chief benefit
of the act Il likely to be It's influence
In discouraging attempts to renew the
old abuses and such benefits do not
appear In statistics. The immediate
effect Of the act has certainly been to
compel railroads to regard the COM
mission now as the important tribunal
whose views they must follow. They
are manlfestlng every outward dispo-
sltion strictly to comply with the law
and to avoid prosecution or complaint.
The time has gone by In which the ac-
ton of the commission can be Ignored
or laughed at.
The Attitude OF the Country Toward
the Rate Bill.
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