The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-01-08
President Taft Sends
Message TO Congress
Is Made For Amendment of Interstate Com
erce and Sherman Trust Laws and Federal Charters
For Corporations Are Recommended AS Solution of
Control of Combinations of Railroads
and Industries

to review by the supreme court of the
/ United States, with the provisions that
| the operation of the decree appealed from
shall not be stayed, unles the supreme
I court shall so order.
Z The commerce court should be EN-
powered In its discretion TO restrain or
suspend the operation Of an order of the
| Interstate commerce commission under
review, pending the final hearing and de-
termination of the proceeding, but no
such restraining order should be made
except upon notice and after hearing. IN
less in cases where irreparable damage
would otherwise ensue TO the petitioner
! judge of that court might be en-
/ powered to allow a stay of the COM
/ missions order for period of not more
than 60 days, but pending application
| to the court for its order injunction,
! then only where his order shall contain
! a specific finding based upon evidence
submitted to the judge making the or
der and identified by reference thereto
that such irreparable damage would re-
suit to the petitioner, specifying the ma
ture of the damage.
Initiation of Legislation.
Under the existing, law the Interstate
, commerce commission itself initiates and
defends litigation in the courts for the
enforcement or in the defense of its or
ders and DEGREES, and for this purpose
1t employees attorneys, who, while sub
ject to the control of the Attorney Cen
eral act upon the initiative and under the
| instructions of the commission.
| This blending of administrative, legis-
latiye and judicial functions tends. in
my opinion. to impair the efficiency of
the commission by clothing it with par
I tlsan characteristics and robbing it of
the impartial judicial attitude 1t should
occupy in passing upon questions sub
mitted it.
In my opinion all litigation affecting
the government should be under the
/ direct control of the department of JUS
! tice, and 1 therefore recommend that all
proceedings affecting orders and DEGREES
/ of the interstate commerce commission
be brought by or against the United
| States go nomine and be placed in charge
of an Assistant Attorney General act
! ing under the direction of the Attorney
| General
| The subject of agreements between
] carriers, with respect to rates, has often
been discussed in Congress. Pooling ar
engagements and agreements were con-
demned by the general sentiment of the
people, and under the Sherman antitrust
I law any agreement between carriers op-
Grating In restraint of Interstate or in
ternational trade or commerce would be
unlawful. The republican platform Of
1868 expressed the belief that the inter-
state commerce law should be further
amended SO as to give the railroads the
right to make and publish traffic agree
ments subject to the approval OF the
commission, but maintaining always the
principle Of competition between natural
ly competing lines and avoiding the COM
mon control of such lines by any means
! whatsoever.
Combination of Rates.
In view of the complete control over
ratemaking and other practices of inter-
state carriers established by the acts of
Congress and as recommended In this
communication, see no reason why
agreements between carriers, subject to
the act, specifying the classifcations of
freight and the rates. fares and charges
for transportation of passengers and
freight which they may have agreed to
establish, should not be permitted, pro-
vided copies of said agreements be
promptly filed with the commission, but
subject to all the provisions of the in
terstate commerce act, and subject to
the right of any parties to such agree
ment to cancel II, as to all or any of
the agreed rates, fares, charges or class
ifications by 30 days notice in writing
to the other parties and to the commits
sion.
Much complaint is made by shippers
over the state of the law under which
they are held bound to know the legal
rate applicable TO any proposed ship
ment, without, as a matter of fact, haV-
ing any certain means of actually as
certainng such rate 1t has been sug-
gested that to meet this grievance car
riers should be required, upon application
by a shipper, to quote the legal rate
in writing, and that the shipper should
be protected in acting upon the rate
thus quoted; but the objection to this is
that 1t would afford a much too easy
method of giving to favored shippers I'M
reasonable preferences and rebates.
I think that the law should provide that
carrier upon written request by an
intending shipper, should quote In writ
ing the rate, or charge, applicable to
the proposed shipment under any sched-
ules or tariffs to which carrier is party,
and that II the party making such request
suffer damage in consequence Of either
refusal or remission to quote the proper
rate or in consequence of a misstate-
ment of the rate the carrier shall be liza
BILE to penalty in some reasonable
amount, say $3.50. to accrue to the United
States to be recovered In a civil action
brought by the appropriate district at
torney.
such a penalty would compel the agen,
of the carrier to exercise due diligence
in quoting the applicable legal rate, and
would thus afford the shipper a rea
measure of protection, while not opening
the way to collision and the giving Of
rebates or other unfair discrimination.
Power To Take Action.
Under the existing law the commits
sion can only act with respect to ar
alleged excessive rate or unduly dis
| criminatory practice by a carrier on {
complaint made by some individual at
! fected thereby. I see no reason why thu
commission should not be authorized t.
act on its own initiative as well as upoI
the complaint of an individual in investi
eating the fairness of any existing rat
! or practice; and I recommend the amend
ment of the law to SO provide and als'
| that the commission shall be fully EN-
powered beyond any question to pas
| upon the classihcations of commodities
for purposes of fixing rates in like man
, ner as 1t may now do with respect TO tn
maximum rate applicable to any transpor
tation.
Under the existing law the commission
may not investigate an increase in rate
until after they shall have become ef
fective; and although one or more car
riers may fight with the commission
proposed increase in rates or change Il
Considerations or other alterations of tn
existent rates or classifications to be
come effective at the expiration of
days from such fling, no proceeding ca
be taken toward investigation of tn
reasonableness of such proposed chang
until after 1t becomes operative.
On the other hand, II the commission