Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-07-03
RATES UNDER TAFTS EYE
Administration of New Law Discussed
by President and Knapp.
POWER TO SUSPEND IS LIMITED
Calling ore of Increases Only 60 BE
Used I'm Exceptional Cases
Tariff ON Lemons Is
Lowered.


BEVERLY, Mass, July a. President Taft
had long talk yesterday with Chairman
Knapp of the Interstate Commerce COM
mission regarding the administration Of the |
| new railway rate law.
At the conclusion OF the interview Il was
made plain that the added authority given
to the commission by the new statute is
| not to be used arbitrarily or for the pur-
pose of hindering the railroads in the con-
duct Of their legitimate business. The
power to suspend new rates, probably the
most direct weapon placed in the hands of
the commission, is to be used only in ex-
ceptional cases.
Chairman Knapp told the president that
the commission already had refused an
application under the new law for a sus-
pension OF increased rates on horse vehicles
and automobiles. He said that there was
nothing the face of things to show that
the new rates we're unjust or unreasonable.
The Interstate Commerce commission Will
not attempt to fix definite rates for the
railroads and the power Of suspension viii
be applied only to rates when a preliminary
hearing gives indication that they are ex-
cessive.
From time to time since the new law
went into effect there have been indications
that some OF the big railroads have been
the manner in which the rate regulating
clauses of the law would be employed by
the commission. Stock manipulators in
Wall street, the administration had been
informed, were trying to trade upon this
doubt and to make the most OF the situa-
ton to further their own advantage.
, 1t can be authoritatively stated that 1t
was never intended the new law should be
club or that 1t should be the means OF
profit taking by bears" In the market
: The commission will not run amuck'' and
will do nothing to jeopardize the interests
of investors There has been talk Of a
possible fright among European investors
and the embarrassing results that might
come from throwing over stocks at crop
; moving time. But the president sees moth
ing in the situation to warrant any such
views.
Mr.. Taft was pleased to find that the
commission already had its plans well
mapped out and that Its views of the
statute coincide thoroughly with those Of
the trainers of the bill.
Suspension of Rates.
It is felt that it would a great impedi-
ment TO the railroads to have every new
. rate suspended and put through the eleven
, months period of determination as to its
: reasona bleness. Chairman Knapp discussed
this feature Of the law at some length with
the president and cited the refusal of the
commission to suspend automobile and
vehicle rates as an indication that the
power of the suspension is not to be used
Unfortunately.
Further information regarding the inter-
view between President Taft and President
Roosevelt yesterday tended to confirm the
} reports of last night that the visit was al
most wholly of a personal and social
nature.
President Taft today expressed regret to
several of his callers over the defeat in
the New York assembly of the Cobb direct
4 primary bill, which was advocated by Gov
T ernor Hughes and publicly endorsed by
e Colonel Roosevelt.
President Tafts vacation is not to begin
until after his strenuous doings OF July I,
1 when he will motor into Boston and stop at
0 several cities on the way. When he is
d through with this engagement he is to go
= into seclusion for ten days.
. Mr.. Taft will summon his cabinet officers
/ from time TO time as he reaches their at
fairs The Navy and Interior departments
. are first to be considered. The Interior
e department matter is that connected with
+ the expenditure of the S2O,OOO,OO0 reclama-
S ton fund. s..
The president, with some friends, enjoyed
sail on the Sylph this afternoon.
1 Tariff on Lemons Lowered.
! WASHINGTON, July freight rates on
. lemons from the producing territory in
Southern California to certain destinations
today were reduced by the Interstate Com
merce commission from $1.15 per 100 pounds
to 100 per 100 pounds. The new rate Will
. become effective September l.
The order of the commission was made
, in the case OF the Arlington Heights Fruit
. exchange and others against the Southern
: Pacific company and practically all of the
railway lines in the country operating east
= and west The Citrus Fruit Growers of
y California attacked the rates on their
q products as unreasonable For many years
they had been paying a rate Of S115 on
n oranges, tangerines and mandarines, in
70 carload lots, and $1.OO per 100 pounds On
lemons. The railways made a lower rate
on lemons in order to encourage the pro-
duction of the fruit in this country.
A few months ago the roads raised The
ID rates on lemons to a.l6 per 100 pounds
Id Then the present case was instituted at.
tx lacking the freight rates on all citrus
ht fruits.
n In its decision the commission held that
c. the present rate on oranges from Southern
an California to eastern destlnatonswas moi
unreasonable and announced, too, that Il
In any case the advanced rate on lemon.
had been paid, reparstion to the shipper.
In would be awarded on tho institution oI
~ proper proceedings.
Is The questions of refrigeration and pre-
cooling charges on citrus fruit shipments
lie were reserved by the commission for ru
y, ture consideration.
o,