New-York tribune., 1910-07-15
MAY Join WITH CANADA
Creation of an international
Railroad Commission Probable.
STATE DEPARTMENT ACTS
Body with Supervisory Authority
Over Carriers of Both Coun-
tries Proposed.

Washington. July I4-An international
railway commission, with supervisory au-
4horitv over the railroads OF the tn,ten
States and Canada, Will probably result
from the action taken to-day by this gov
ernnaent in the appointment OF Martin A
Knapp. chairman of the Interstate Com
merce Commission. as the representative
Of the United States TO confer with J. L.
Nabee. chief of the Railway Commission OF
Canada The State Department made the
following announcement OF Judge knapps
appointment:
The Secretary of State has designated
Martin A Knapp, chairman of the inter
state Commerce Commission, as the repre-
sentative OF this government TO confer Viii
the recently appointed Canadian repreSei,,11- sen
a-ive J. p Mabee. chairman OF the -hail-
way Commission of Canada on the SGo9ect
of the 5oint control of International tTAlIlc
rates. II is understood that meetings be
.wean Nr Knapp and Mr.. Mabee will be
arranged at once to take place at points III
the United States or Canada or both, our
ing the remainder of the summer on the
co11pletjon of the conferences a report with
recommendations VIII be made by the COM
r1issiOners, either Jointly 10 ooth govern ven
nents or separately to their respective gov
ernments.
The appointment Of Judge Knapp and Mr..
Nabee is the result of a considerable cor
respondence and diplomatic negotiations be
tween the United States and Canada. The
subject was first brought up more than
wear ago in a letter from Mr.. Mabee TO
Judge Knapp. 1t was pointed out that the
Increasing traffic between the United States
and Canada would render full control over
rates in the future more difficult unless
some joint action were taken.
Difficulties in Present Situation.
II was realized that the acquisition of
Canadian terminals by American roads and
Of American roads and terminals by Ca
madam railways presented ever increasing
difficulties In the present circumstances
II is not possible 10 compel railroad or
press companies 10 establish joint through
rates TO and from points in the two coun-
tries. The Interstate Commerce Commits
sion may require roads under its iurisdic-
lion TO estab ablish through routes and joint
rates and the Canadian commission may
require the lines under its jurisdiction TO do
the same; bat neither body can compel two
or more carriers to do this with interna-
tieRal traffic and furnish TO the shipper a
through bill of lading from any point in
one country 10 any point in the other The
reasonableness of rates between points in
this country and points in Canada also is a
question Of serious Importance to shippers
IN order TO determine any given question
as 10 rates that may arise il is necessary
Ior the shipper 10 institute a proceeding
before the Interstate Commerce Commits
sion and the Canadian Railway Commits
sion, and even then the result is not salts
factory.
The difficulties practically preclude any
inquiry by existing tribunals into the rea-
sonableness Of combination through rates
as applied Jo International traffic No
power at present exists that can require
~i.a~-
transportation to establish what may be
officially regarded as reasonable through
joint rates and apportion them among the
carriers in the event OF a disagreement
The result is that the international traffic
moves on a combination OF rates local TO
the United States and to Canada, and if
this sum of the local rates is attacked il
must be through proceedings before both
the United States and Canadian commits
sions.
Out of this situation grew the suggestion
that a joint international commission
should be created which should have
supervisory authority over ali interstate
and international transportation lines
whether by rail or water, between the two
countries It has not been determined vet
whether such a commission might better
.be created 10y concurrent legislation or
through treaty arrangements between the
Two countries. At the conferences that sub
5ect viii be discussed and probably deter
mined
Diplomatic Negotiations.
When the question of creating such a
commission first presented 10 Chair
man Knapp, he suggested, i'll letter TO
Mr.. Mabee, that the project might better
he conducted through the regular diplo-
matte channels Than through the personal
if official. correspondence. In consequence
the Canadian government submitted the
proposition to Ambassador Bryce, who took
il up with the State Department.
The negotiations since have been con-
Quoted by ihe State Department and the
Canadian Department of Foreign Affairs,
Mr.. Mabee was designated by the Canadian
government as its representative, and the
State Department today issued a commits
sion TO Chairman Knapp. designating him
as the representative of the United States.
While ne definite arrangements have been
perfected for the conferences, it is probable
that Chairman Knapp and Mr.. Mabee will
meet in Ottawa in August. 1t is not i'm
probable that a conference may be held
later in Washington The representatives
of the two governments will endeayor to