The Washington times., 1908-03-01
The Fulton Bill.

The Interstate Commerce Com
mission has written a letter TO the
Senate Committee on Interstate
Commerce that will doubtless mean
the early death of the Fulton bill.
1t is a matter of genuine regret to
the friends of the commission, of
whom this newspaper has been one,
that it should have taken the posi-
ton which this letter defines.
Senator Fulton introduced a bill
to provide that railroad rates should
not be increased. in case there is
protest by shipping interests, with
out first an inquiry by the commits
sion and its approval. The bill was
inspired by the lumber interests of
the far Northwest, which have been
most injuTiously affected by the in
crease of rates on lumber from the
north Pacific Coast TO middle west
ern points.
Low rates We're voluntarily made
by the railroads originally, in order
to create traffic from that section.
A great business developed; i'm
mense capital was invested in it.
The railroads and the Iumbermen
alike profited, and the country de-
veloped. Then. when the business
was established, the railroads some
months ago raised the rates. This
threw out of joint the whole ad-
justment of affairs. The far North
west could not pay the increased
rate. It was enjoined by a Fed
eral court, but the threat of its en-
forcement almost Frustrated the
lumber business of that region.
Here was a rate which had been
in effect many years. The railroads
making it are the most prosperous
in the country-the Hill and Harri-
man systems They urge that they
need the additional moneys but
their cash accounts in recent years
have not especially indicated such a
need.
The Fulton bill proposed simply
that, in case OF such an increase of
rates being proposed, its merits
should be investigated. and until
there was a determination OF its
reasonabIeness it should not take
effect
Asked whether this would be q
desirable law, the Interstate Com
mission replied that it would not.
The shipping interests of the
whole country want just that law.
Why should the commission advise
against its enactment?
Because, according to the commits
sion's letter to the Interstate Com
merce Committee. first, it would be
unfair to the railroads to take awav
from them control of their rates to
such an extent. Second. it would
make too much work for the COM
mission; and third, it would tend to
make reductions of rates impos-
sible, because railroads, realizing
that TO raise rate would be diff
feult, would not make experimental
reductions.
None of these reasons appears
sufficient. They are the same rea-
: sons which State railroad commits
sions used to urge, in the days when
they were frankly controlled by the
railroads. Most of the State rail
road commissions fell into disre-
pute and degradation, because they
never wanted to assume any re-
sponsibility; 20 do anything; to have
any work imposed on them. They
never felt equipped to do the thing
that the people wanted. They were
sure the railroads could do it bet
ter. The public got disguised with
them, and rightly.
II will be a sad day for those
people who believe private owner
ship with Government regulation
the ideal method of handling rail-
roads when the Interstate Commits