The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1910-01-13

! the part OF carriers They contend that
this would be in effect to take from the
owners of the railroads the management
of their properties and to cIothe the in
terstate commerce commission with the
original rate-making power-a policy
which was much discussed at the time
of the passage of the Hepburn act in
1866, and which was then and has al
ways been distinctly rejected: and in re-
ply to the suggestion that they are able,
by reSorting to the courts, to stay the
taking effect of the order of the commits
sion until its reasonableness shall have
been investigated by the courts where
as, the people are deprived of any such
remedy with respect to action by the
carriers, they point to the provisions Of
the interstate commerce act providing for
restitution to the shippers by carriers, of
excessive rates charged in cases where
the order of the commission reducing
such rates are affirmed It may be doubt
ed how effective this remedy really is.
Experience has shown that many per-
haps most shippers do not resort to pro-
ceedings to recover the excessive rates
which they may have been required to
pay, for the simple reason that they have
added the rates paid to the cost of the
goods, and thus enhanced the price there
OF to their customers, and that the public
has in effect paid the bill. On the other
hand, the enormous volume of Transport
tation charges, the great number of sep
arate tariffs filed annually with the in
terstate commerce commission, amount
ing to almost 100000, and the impossible
fty Of any commission supervising the
making of tariffs in advance of their be-
coming effective on every TRANSPORTATION
line within the United States to the ex-
tent that would be necessary if their ac-
tive concurrence were required in the ma
king Of every tariff. has satisfied me that
this power, if granted, should be con-
ferred in very limited and restricted
form
Commission Should Probe Change.
I therefore recommend that the inter
state commerce commission be empow-
cred whenever any proposed increase Of
rates is filed, at once, either on com
plant or of its own motion, to enter
upon an investigation into the reasonable
ness of such change. and that 1t be fur
Their empowered, in it's discretion, to
postpone the effective date of such pro-
posed increase for a period not exceed
ing 60 days beyond the date when such
rate would take effect. If within this
time it shall determine that such in
crease is unreasonable, it may then, by
its order, either forbid the increase at
al, OF TX tne maximum beyond which
it shall not be made If, on the other
hand, at the expiration of this time. the
commission shall not have completed its
investigation, then the rates shall take
erect precisely as It would under the ex-
listing law, and the commission NAV con-
tlnue its investigation with such results
as might be realized under the law as It
now stands.
The claim is very earnestly advanced
by some large associations of SINNERS
that shippers of freight should be en-
powered to direct the route over which
their shipments should pass to destina-
ton, and in this connection it has been
urged that the provisions of section Is
of the interstate commerce act, which
now empowers the commission. after
nearing on complaint, to establish
through routes and maximum Joint rates
to be charged, ETC., when no reasonable
or satisfactory through route shall have
been already established, be amended so
as TO empower the commission to take
such action, even when one existing rea-
sonable and satisfactory route already
exists, if it be possible, to establish ad-
ditional routes. This seems to me to
be reasonable proposition 7 know of
no reason why shipper should not
have the right to elect between two or
more established through routes to which
the international carrier may be a party.
and to require his shipment to be trans
ported by such routes as he may desig-
nate for that purpose, subject, however.
in the exercise of this right to such rea-
sonable regulations as the interstate com
merce commission may prescribe.
The Republican platform of 1908 de-
clared in favor of amending the inter-
state commerce law but so as always to
maintain the principle Of conlpe tition be-
tween naturally competing lines. and
avoiding the common control of such
lines by any means whatever. One of
the most potent means of exercising such
control has been through the holding of
stock of one railroad company by an
other company owning a competing line
This condition has grown up under ex-
press legislative power conferred blythe
laws of many states, and to attempt now
to suddenly reverse that policy so far
as it affects the ownership of stocks here
tofore so acquired, would be to inf1ict
grievous injury, not only upon the cor
porations affected but upon a large BODY
of the investment holding public.
Plan to End Rail Combine.
I. however recommend that the law
shall be amended SO as to provide that
from and after the date of it's passage
no railroad company subject to the inter
directly, acquire any interests of anv
kind in capital stock or purchase or
lease any railroad of any other CORPORA
ton which completes with it respecting
business to which the interstate com
merce act applies. But especially for
the protection of the minority stockhold-
ers in securing to them the best market
for Their stock, / recommend that such
prohibition be coupled with a proyiso
that it shall not operate to prevent anv
cornoration which, at the date of passa pc
of such act shall own not less than one
half of the entire issued and outstanding
capital stock of any other railroad com
pany from acquiring all or the renain
der of such stock; nor to prohibit any
railroad company which at the date Of
the enactment of the law is operatinp, 2
railroad of any other corporation under
lease executed of a term not less than
Ok wears from acquiring the reYersionerv
ownership of the den1ised railroad h,,t
that such provisions shall not operate to
authorize or validate the ACQUISITION
+broueh stock ownership or otherwise
of a competing line or interest therein in .
violation of the antitrust or any other
law.
The Republican platform of 1908 fur
thor declares in favor of such national
LEGISLATION and supervision as will nre
vent the future over-issue of stocks and
bonds by interstate carriers, and in order
IN carry out it's provisions I recommend
me enactment of a law providing that
no railroad corporation subject to the in
terstate commerce act shall hereafter for