Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-25
.COuzens Measure
Is Seen as Blow
To Carrier Rates
Railroad Economists De-
clare Bill Would Seriously
Affect Present Structure.

Who pays the freight? whoever ooeS
is deeply concerned in the measure
which is known as the Couzens resolu-
ton and which has been passed by the
Senate. This measure would take away
from the Interstate Commerce Com
mission the right to approve railroad
consultations pending new legislation.
Railroad economists who have studied
the situation declare that this legis-
lative measure not only affects pending
consultations. but the entire rate
structure of the country. If this meas
ure is passed, they assert, it will in
validate every rate problem regarded
as solved up to this time.
The result. they say, will be the
making OF factory delivery price and
a consequent refusal of producers to
make a delivered price. The slowing
down on retail trade seems obvious
at least the factory producers count
on 1t.
Hines Analysis.
The carriers occupy a unique posi-
ton They are common carriers and
they have in some instances a nonop-
oily. Whether they nseded competition
was question that lay with the In
terstate Commerce Commission. The
carriers have obeyed the law and have
set frsight and passenger rates accord
ingly, but now, If the old operations OF
the Interstate Commission are ques-
toned. the cost Of transportation is in
question.
Walker D. Hines, one of the out
standing authorities in the field Of
public utilities, analyses the situation
as follows
/. The Couzens resolution throws the
railroads back on the unrelieved prohi-
billions of the antitrust laws, with re-
sulting uncertainty.
2. 1t establishes the principle Of direct
congressional interference with the
commissions statutory discretion, with
inevitable impairment of the commits
sions morale.
8. The holding company" provision
seems to go even to the length of
rendering unlawful the continued exer-
else of a rail carriers control If its
subsidiaries, where that control was
acquired prior to the transportation act
and therefore without authority from
the commission.
THE resolution suspends until March
4, 1881, with strong prospects of long
extensions thereafter If the resolution is
once adopted" Mr.. Hines said, the
powers Of the Interstate Commerce
roads or railroad control and over rail-
road consultations in all cases where
any such step would involve eny viola
ton Of the antitrust laws as they
existed prior to the transportation act.
Commission Orders.
"Since 1920. the commission has made
orders authorizing acquisitions of rail-
roads or for railroad control affecting
about $4,000 miles of railroad, which
would have been impracticable as to
the bulk of this mileage under the anti
trust laws because of involving the
elimination of some substantial compe-
tition, and much of the remainder
would have been uncertain because of
the well known uncertainty as to low
the courts would apply the antitrust
laws to doubtful cases.
"A very grave feature of this matter
is the precedent thereby established of
direct congressional interference with
the commissions discretion in the exer-
else Of powers conferred upon it by the
interstate commerce act. II this resolu-
ton Is passed. It will set the fashion
for any disgruntled and more or less
organized minority to rush to Congress
to prevent. by joint resolution. the con-
t1nued orderly exercise by the commits
sion OF its statutory functions in other
respects. The intimidating effect upon
the commission should readily lie appre-
ciated. Even railroad having no i'm
portant concern as to this part of the
resolution NAV find itself seriously en-
barrassed by the,next attack which may
come by virtue Of this precedent"
Copyright. 1901