New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-07-02

Interstate Commerce COnlmIs-
sion Will Not Use Its Pow
ers Arbitrarily.
TAFT AND KNAPP CONFER
Rates VIII Be Suspended Only
Where There Is Prima Facie
Evidence Of Unreasonable
ness-Investors Safe.
rRy reIexrzph 20 The tribune ]


state Commerce Commission does not
purpose TO utilize the power delegated 20
it bv the new railroad rate lsw 20 sus-
pend every increase in rates and that u
will do so only In cases where there -
prima facfa evidence Of unreasonaoieness
was made clear to the President to-day
by Judge Martin A. KNAPP. chairman az
the commission Judge Knapp reviewed
the recent decisions OF the commission
which have been used so successfully BY
the bears in Wall Street 10 hammer
stocks. and declared that. with the n
gen1Iftv which is never lacking among
the .nanfpulators Of securities. rhe- effect
Of the decisions had been magnifed be-
yond all reason
At the close of the interview y was
made plain that the added authority
given 10 the commission by the new
statute is not 10 be used arbitrarily eV
for the purpose of hinderinS the ran
roads in the conduct 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 exceptional cases
It wss never intended that the new law
should be 2 club or that it should 0e
made the means Of profit making BY bears
in the market The commission VIII ho1
run arnucE" and will do nothing TO Jeop-
ardfze the interests Of investors
Commission a Conservative Body
The new law is being tried out The
President feels that it is in the nandS OF
.
bas beeu the aim of NJ. Taft 70 make
the commission. with its quasi-JudlclaI
functions. a conservative body He Is
anxfous above all that this character OF
the commission shall be maintained
The commission is anxious that there
shall be as little friction as possible ana
that nothing shall be done TO menace the
prosperity OF the railroads so long as
they comply with the law
In the case OF the protest against the
increase OF rates on automobiles and
horse vehicles the commission mas re-
fused 70 order a suspension because
there was no prirna facie- evidence OF
Unreasona hIeness. Judge Knapp also
cited the case Of the commissions hav-
ing sustained an increase Of the -four
rate between Buffalo and New York
from 10 TO II cents as evidence Of the
determination to deal justly with the
railroads. He declared that the Reno
rate was clearly unjustifable. and was
therefore ordered suspended. but he
called attention TO the fact that the or
der suspending certain Pacific Coast
rates was purely tentative or interIocu-
tory.
Work OF ManiPulators Deprecated.
The efforts OF spectators 10 distort
the work of the commission. to exag-
gerate beyond all reason the effect Of its
decisions and for personal gain to incur
the risk Of frightening European in
vestOrs just on the eve of the crop nov
ing season here is regarded by the adj
ministratiOn with decided Impotence.
There is one bright side TO the situation,
however. in it's opinion, and that is that
it will doubtless give an impetus 70 the
movement for federal regulation of rail-
road securities
President Taft sent for Judge Knapp
TO ascertain at first hand the views OF
the commission regarding its powers
under the new law. Mr.. Knapp said he
and mis- associates had. of course. given
the statute the most careful considera-
ton. and they were of the opinion that
there was no purpose to make the COM
mission rate-making body. but only 70
delegate 10 it such additional authority
as was needed To complete its power 70
prevent the collection Of unjust and I'M
reasonable rates. In a word. the com
mission does not regard its powers as
changed in nature. but merely ampIified
in accordance with the spirit OF the rate
law of 1906.
Mr.. Taft was pleased 10 find that the
commission already had its plans well
mapped out. and that its views Of the
new statute agreed thoroughly with
those of the trainers of the law
Judge Knapp spent about an hour
with the President and then left Beverly
for Washington
The Talk with Mr. Roosevelt.
! Speaking Of the call of ex-President
Rooseve I. President Taft confirmed to-
/ day the report which appeared in The
Tribune this morning. that il was most
delightful and chiefly social in its nat
ure. He also mentioned the fact that
T the progress of the general peace move
ment among European powers end the
( opportunities for usefulness OF the newly
! created peace commission were some
+ what extensively discussed. but he gave
no intimatiOn OF Mr.. RoOsevelt's atti-
/ tude toward the proposition 10 make him
head of the commission.
I AS one who was present expressed IL
I to-day. We all sat around in ring
and had a mighty good time Mr.
Roosevelt told many interesting stories
! of his experiences abroad, both in Africa
and Europe. We found that he had lost
none OF his characteristically vigorous
and picturesque power OF describing in
/ dividuaIs and situations. and mis- visit
was a JOY to US all
/ The President expressed TO friends to-
dav his extreme regret over the action
of the New York Legislature. saving he
regarded the Cobb bill as an eminently
fair compromise. and one that would
have given the direct primary PROPOSE
/ ton a fair trial without entirely aban-
doninS the older form of political ma
chinery He is not prepared to make
I any forecast OF the results. however
The President announced that he has
/ r.oO-oa ATis