The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-07-02
TAFT NOT USING
RATE AS CLUB
Railroads Not to Be Har-
assed Unnecessarily.
PRESIDENT AND KNAPP CONFER
Interstate Commerce Commission
viii Not Invoke Power Qf Rate
Suspension Except When fragrant,
Wrong Seems Imminent-PrOposed
Tariffs Not to BE Held Up.

law will not be used to hammer down
railroad rates.
| The administration does not intend to
make a club of that law. 1t does not
/ desire to harass the common carriers of
the country unnecessarily by the arbi-
trary suspension of rates Under the law
| just enacted. the Interstate Commerce
/ Commission IS authorized to suspend any
rate for eleven months pending its de-
| termination of the rates business. This
| power, regarded by some railroad men
/ as a menace to their prosperity. will not
| be used arbitrarily and indiscriminately.
| The commission will invoke 1t only when
| the facts II finds upon investigation war
rant drastic methods.
| That was the conclusion reached by
| President Taft and Chairman Martin A
Knapp of the Interstate Commerce Com
mission. at an hours long talk at the
Evans cottage. on Burgess Point, late
this afternoon.
Discuss New Measure.
Mr.. Knapp, contrary to the early I'M
| derstanding had been summoned to Bev-
erly TO talk over the application Of the
/ new law with the President He was
| able TO discuss its features. and particu-
larry the one granting the commission
power to suspend rates, with full knowI-
edge of the situation.
The President has never thought that
the commission should hold up every
tariff proposed by a railroad. He wished
to see that body given power to apply
this brake on occasions where II had TO
take restraining action: that was ALL
Information has come to the President
that since the law was enacted railroad
men have become afraid of that clause,
that they feared that no rate raised
would stand a chance before the scruti-
nizing eye Of the commission. This i'm
preston, being erroneous. he wished cor
rected. and a reassuring note sounded.
Already the commission. It was pointed
out after air. Knapps visit. has refused
to suspend the vehicle and automobile
rate. It refused because there was no
prima facie evidence that it was unrea-
sonabe. This same method will be en-
ployed in the future II there is a prima
| facie case against a proposed rate the
commission viii suspend and investigate
| further; If there is not good ground to
begin an investigation it probably will
not do so
Wall Street In Alarm.
any wholesale use of the rate suspen-
sion power, he does not. on the other
hand. think that the cries of alarm from
Wall street have any basis In reason.
He has been informed that there has
been a lot OF speculation In the street,
based upon the fears of railroad inves-
tors that the power Of suspension meant
a loss TO the roads.
To the Summer Capital. too. have come
stories that the new law. and partieu-
larry this same clause. would frighten
European investors, and that in conse-
quence when crop moving time comes
the country would suffer This view Mr..
Taft fails TO share.
Altogether, the administrations atti-
tude seems to-day to be that the new
law Is being tried out" There is not
10 be any resort to it in haste with
repentance at leisure.
II became known definitely here to-
day that the talk between the President
and Col. Roosevelt was almost exclu-
slvely social. AS one Of those who was
pr sse-+ on the porch at the time put It,
I'VE sat around in a ring and talked
about everything" The colonel told
about his trip through Africa and Eu-
rope and if there was any touch of
politics, both he and the President de-
cided they would not let that part out
at all.
Talked of Peace Commission.
There was some mention of the new
international peace commission, for the
Craftsmanship of which Col. Roosevelt
has been suggested. but no decision was
reached as to its composition. About
Gov. Hughes and the possibility Of his
declining the Supreme Court position
which the President has offered there
was nothing learned al ALL
The President was distressed to hear
that the New York legislature had de-
feated the Cobb direct primary bill. He
thought the defeat most unfortunate"
as he told friends. because II the bill had
become law the principle of the direct
primaries would have been given a most
favorable try-out
From now on the President probably |
will see members of his Cabinet who are
now travelling every once m while. The
first 10 come will be either Secretary of |
the Navy Meyer. or Secretary of the In
terror Ballinger. Both, it became known |
to-day, have business Of pressing nature |
that needs Presidential attention.
Outside of the talks with Cabinet off, |
GERS and the big time he is going to have |
on the Fourth, shooting along through |
Boston and its suburbs, the President in |
tends to rest until about July is as hard |
as he can rest. Already he has acquired |
fire coat of tan from his golfing and |
motoring expeditions. and looks as II the |
few days here had helped immensely.
Riots at Cuban Primaries.