Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-07
TAFT MAKES PACT
WITH TRUNK LINES
Western Railroads Will With
draw Advance in Rates e.
fective June /.
EASTERN ROADS LIKELY
TO FOLLOW THE LEAD
Business World Regards Crisis as
Happily Passed.
REQUIRES CHANGE IN BILL
President Sends Special Message to
Congress Explaining Terms
of Agreement.
Business World Regards Crisis as
Happily Passed.
REQUIRES CHANGE IN BILL

his administration were receiving con-
gratulations today on having reached an
agreement with the western railroads,
under which all advances In rates are
to be withdrawn pending passage by
Congress of the railroad bill, railroad
and other stocks in New York and Lon
don were advances as a direct result.
and business men the country over were
taking a more optimistic view of things
than they had entertained since filing Of
the Injunction suits in the federal courts
in Missouri.
A conference which is being held at the
White House this afternoon is expected
to result in an announcement that the
eastern roads will abide by the terms Of
the agreement entered into with the west
ern trunk lines and that the advance in
rates they had proposed to make effective
July will not be put into operation.
Both Sides Satisfied.
White House yesterday in the struggle
between some of the best railroad brains
of the country and the best legal brains
of the administration, and both sides
profess to be we'll satisfied with the agree
ment reached, even if both do not claim
the victory. The agreement itself is very
simple.
The railroads will not attempt to put
into effect the rates which the federal
court has enjoined them from enforcing,
nor will they contest the injunction. The
administration will proceed no further
against the railroads in the matter OF
rates, pending passage of the railroad
bill, but the injunction will remain opera
tive until that time.
Under the railroad bill, in its present
form and as it probably will pass, the
interstate commerce commission will
have power to pass on the reasonableness
of rates, and the railroad companies will
be privileged to enforce any rates which
the commission will approve.
The bill as il now stands in the House
provides that the clause giving the COM
mission power to investigate and suspend
rates filed by the railroads shall not be-
come operative for sixty days. In order
that the agreement reached yesterday
might be binding on the roads the Presi-
dent today sent a special message to
Congress advising that the bill be changed
SO that this clause will become operative
Immediately upon its passage.
a long conference was held at the
White House today to determine whether
the railroad bill in Congress shall so to
conference or whether the House will ac-
cept the Senate bill. Representative Mann
would not agree to acceptance Of the
Senate bill, neceSsitating a conference,
which, it is hoped, will settle ali differ
ences in short time.
Text of Presidents Message.
President Tafts message to Congress
was as follows:
ITO the Senate and House of Representa-
tives:
"A recent effort by large number of
railroad companies to increase rates for
interstate transportation Of persons and
property caused me to direct the Attor-
ney General to bring suit and secure
from the United States court in Missouri
an injunction restraining the operation of
such increased rates during the tendency
of the proceeding.
This action led to conference with the
representatives of the railroad COM
panies so enjoined. and the agreement by
each of them to withdraw the proposed
increases Of rates effective on or after
June 1. and not to file any further at
tempted increases until after the enact
ment into law of the pending bill to
amend the interstate commerce act or
the adjournment of the Congress; with
the further understanding that upon the
enactment of such law each would sub
init to the determination of the interstate
commerce commission the question of the
reasona bleness of all increases that each
might thereafter propose.
1T is my hope that all of the other
railroad companies will take like action
In order. however, that each may have
the benefit OF speedy determination of
the question, whether or not its proposed
increase in rates are juStifiable, pro-
vision should be made by Congress to
vest the interstate commerce commission
with jurisdiction over such question as
soon possible.
Sixty-Day Clause Fatal.
t.:Ln. the Senate amendment to section
1s of the act to regulate commerce as
contained in II. r. 1885 the Interstate
commerce commission is empowered i'm
mediately upon the filing of a proposed
increase IN rates, VI llS own IlOtlOn, or
upon complaint, to enter upon an investi-
CATION and determination of the justice
and reasonableness of such increase, and
in case 1t deems it expedient. to suspend
the operation thereof for a period speci-
fed in the section to enable it to COM
plete such investigation. That bill. how
ever, provides that the at shall take ef-
feet and be in force only from and after
the expiration Of sixty days after its pas
sage.
This provision, if allowed to remain in
the bill, would enable carriers. between
the time of the enactment of the bill and
the time OF its taking effect, to file in
creases in rates which would become eff
fective at the expiration Of thirty days
and remain in effect and be collected from
the public during the pendency Of pro-
ceedngs to review them. whereas if the
bill be made to take effect Immediately,
such investigation will have to be made
before the public is called upon to pay
the increased rates.
II therefore recommend that this lat
ter provision be modified by providing
that at least section . Of the Senate
to the bill. which is the Sec
Continued on Second Page.)