Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1916-12-08
new RATE-M MAKING
METHOD NECESSARY
Commission Would Put Bur.
den of Reasonableness of
Changes on Carriers.
DEPARTURE IS RADICAL

Washington, Dec. 1.-The Inter
state Commerce commission in it:
annual report today to congress rec
commended a sweeping change If
methods of establishing freight and
passenger rates so that shipper:
would not longer be compelled to
show a proposed rate unreasonable
or see it become effective. Carriers
seeking to alter rate would be COM
PEELED to show the change was rea-
sonable.
The recommendation is that by
statute congress fix the interstate
rates, fares, charges, classihcations,
rules and regulations existing at a
specific date, prior to that of enact
ment, as Just and reasonable for the
past and provide that no change
therein after that specified date may
be made except upon order Of the
commission; with provision that such
statute shall not affect the proceed
ings pending at the time OF enact
ment." .. 81. .t
The purpose OF the suggestion is
said to be mainly to correct flaws in
the present method by which an in
jurcd shipper seeks reparation for
payment OF higher rate than suisse
quently is approx d by the commits
sion. ~,
Means Radical Change.
1t was said, however, that the eff
feet of such legislation would be radi-
cal upon methods of rate establish
ment. At present tariffs proposing
rate changes filed by the railroads be-
come operative on fixed date unless
suspended by the commission and
shown on hearing to be unreasonable,
unjust or discriminatory. If existing
rates are declared by statute to be
just and reasonable, it was pointed
out, the burden will be on those who
wish Ito change them.
THE necessity for fexibility in Or
der to fairly meet rapidly changing
industrial and commercial condi-
TONS" says the report in this connec-
ton, lis fully recognized, but the
soundness Of the theory of leaving
each carrier free to initiate its own
rates and thus investing each OF them
with the power to overthrow or SER
iously disturb an adjustment that is
recognized as reasonable and fair by
the overwhelming majority Of the
carriers and shippers interested there
IN, may well be doubted.
All rates, fares, and charges have
been open to complaint for period
OF more than ten years, within which
the commission had power to fix the
future maximum rates. For a period
OF more than six years all proposed
increased rates have been subject to
protest and suspension before bccom-
ing effective. Obviously there should
come q time when as to the past the
general level Of the rates and the re-
lationship of rates should be fixed as
reasonable.
Plan Is Constructive.
The adoption Of such plan as
this would make it possible to apply
the energies expended upon rate con-
trovcrsies in the direction Of con-
structive work for the future instead
OF expanding them upon controver-
sizes as to reparation for the past
with every probability that in a ma
jority Of the cases the one who ulti-
mately bore the charge will never be
reached by the reparation.'
To relieve car shortage the COM
mission, asks legislation giving IL
authority to prescribe rules govern
ing interchange OF cars, return to
owning roads, loading conditions on
foreign roads and compensation for
the use Of cars.
1T seems to us beyond question:
says the report, "that largely in
creased railroad facilities are neces-
sary to adequately handle the COM
mercc OF the country and that in some
way those facilities must be provided.
Obviously this cannot be done BY
leaving these matters for determine
ton by unanimous vote of all the
carriers of the country. Within GER
tain limits the force OF competition
between carriers cannot be denied.
The carrier that desires to participate
IN the movement Of traffic must carry
It as cheaply as its competitor. II
must accord as liberal rules and reg
ulations as are accorded by its COM
petitor, and these competitive inAu-
ences make unanimity of opinion as
to what are proper rules and regula-
tons more difficult OF attainment than
i would otherwise be. From these
facts and experiences, and a study Of
these considerations over a substan-
tial period, we are led TO the conclu-
sion that a reasonable degree Of the
desired and necessary improvement
can be reached within any reasonable
time only by vesting power to regu-
late these questions for all railroads
in the appropriate federal body and
also providing means by which rules
and regulations promulgated can be
enforced"
The commission further recon-
mends that unless the suggestion for
fixing existing rates by statute is fol-
lowed the law be changed to curtail
the present period of suspension and
resuspension of a filed rate from
fourteen months to4a year and that
railroads be required to give sixty in
stead of the present thirty days notice
OF proposed rate changes.
New WARMING Sent