Arizona republican., 1911-12-21

! points to Pacific coast points they re- fly on market competition. under 1 which they give lower rates from all the interior cities twO- thirds of the way across the continent to the same i coast cities than to inter-mountain points. This is the kind of diycrimin- | alton the commission mas attempted tC minimize"
 1 While the commission recognizes the 1 full effect of water expedition upon | the rail rates it says we have the frank admission or the railroad man. ! agers that they have subsidized or | brought some of the steamship lines and terrorize6 others until they can make the boast that the effect of the sea has been neautralized.
 A railroad policy of rate making must certinly be subject to limitations of the law. or else there is no law. To say that there is a long short haul section under which a carrier may not charge more for the shorter than for the longer haul. but that the rail- roads may. to any extent they please carry out a policy or blanketing the country for the benefit of the farther points and not the nearer points. iS to say that railroad may. without re- straint effect a ruinous discrimination and give no Justification save its own determination of whim There can be no regulation of rates as to dis crimination or preference under such an interpretation of the law
 The commerce. court intimates that the mistake of the commission is in having attempted to fix a relation of rates instead of establishing reason able rates; but. as we have already pointed out. there is no way in which
 the discrimination found to exist in these tariffs can be prevented except hy fixing q differential. since we have Ho power to establish an absolute rate or fiX a minimum charge below which the carrier is not free to go.
 We feel strongly that water com petition. even when the widest rcas- enable latitude is given to the effect Of market competition. cannot by any possibility justify higher rate from omaha to Reno than from Omaha tO San Francisco: from St. Paul to Spo- kane than from St. Paul to Seattle.
 Upon the other hand. it should be- noted that the opening of the Panama Canal may so add to the intensity of this. water competition as to call for some modification of the conclusion Eow reached
 The commission holds the fixing of reasonable rates to be a legislative function. rot subject to review by the a has delegated that power to the com mission, and the intemation is clear that the courts. in the opinion of the commission has no power to review such rates as may have been estab- lished through the orders of the com m.Ssion in the trans continental cas- es
 The report declares that during the last year 652 cases. emDodying 507 for nal decisions were disposed of. Dur ing the year SSl formal complaints were filed and r. proceedings of in- quiry were instituted by the commis- ticn there were instituted 43 proceed sion on its own initiative In addi- ings of investigations and suspensions of tariffs containing proposed increas- es ad rates: 1925 informal complaints; 5653 claims: ana 5.723 applications for relief from the operation of the long-and- short haul provision.
 Al sessions of the commission held in Washington and elsewhere. 943 hearings were held at which more than 5000 pages of testimony were taken. In the twelve months ended November 90. 1911, 121,S29 tariff publications were filed. an average of more than 400 for each working day.
 An elaborate discussion is present. ei of the work of the division of in quirv showing that since December 1. 1910. G. indictments for criminal vio- lationS of the act to regulate com merce were returned. The aggregate of fines assessed was $214.225. Many investigations were made that dis closed practices not of sufficient gray ity to warrant prosecution but of such doubtful propriety that the commis- sion ordered their discontinuance. In this connection the commission says significantly.
 Tt becomes Increasingly evident that entire freedom from discrimina
  separation of the business of transpOr tation from every form of commercial or industrial enterprises"
 In conclusion the commission recom- mends that the law be amended to as to require telephone, telegraph and cable companies to publish, file. and post their interstate tariffs; to make the Elkins act applicable to such com panies: that transportation companies be required to adopt system of uni- form classification of freight: tO pro- vide additional safeguards in railroad transportation for employees and the public: to relieve the commission of the jurisdiction of the street railways of the District of Columbia: to pro- vide for the regulation and control of capitalization and suitable provisions for the valuation of railway property: | and that suitable building be provid- ! ed for the use of the commission. TRANcE0RMERc FIR