Jasper County Democrat, Volume 9, Number 10, Rensselaer, Jasper County, 9 June 1906 — RAILROAD RATE BILL [ARTICLE]

RAILROAD RATE BILL

Brief of What Is Contemplated In This Important Measure. A SQUARE DEAL FOR SHIPPERS It Makes Pipe Lines Common Carriers, Puts Express and Sleeping Car Companies Under Authority of Interstate Commerce Commission, and Makes Penalty of Imprisonment for Givers and Takers of Rebates. The rate bill is one of the most important pieces of legislation enacted by congress for many years. Its purpose is to abolish the evils complained of by the public against the common carriers, and to further carry out President Roosevelt’s idea of "a square deal.” _______ In addition to the specific evils which are conclusively reached by the bill, it is drawn in such a way as to meet almost every condition that would work a disadvantage to shippers. Generally speaking, it provides that the Interstate. Commerce Commission shall upon complaint have the power to fix and determine a reasonable rate, and such rate shall be binding and continuous for a period of two years, unless suspended by the commission or set aside by the courts. Not only is it a great Improvement on the original interstate commerce act of twenty years ago, but it is safe to say that no more important legislation has ever been attempted by congress, and a careful scrutiny of the bill discloses that a tremendous stride has been taken in behalf of the people. The bill as it passed the senate is much stronger than when it lets the house. It has been debated and deliberated upon by the ablest lawyers of the country, and has been strengthened in many peaces, and while it does not go so far as the radicals would have it go, yet it is conceded by all the students of the question of transportation to be a great step in the right direction. An able and vigorous administration of the law will guarantee all the enjoyment of transportation facilities upon an adequate, impartial and reasonable basis. The following is a list of changes made froin the present interstate commerce law, and a comment as to their probable effect: By this act pipe lines are made common carriers, and made subject to the same law applicable to any other common carrier. This guarantees to the public the use of any pipe line in the transportation of oil, and will give the shipper the advantage of sending his oil through a pipe line rather than by rail, if it can be done cheaper. This will take away from the Standard Oil company one of the great advantages that they have over the independent companies. All traffic between points in any territory is made subject to the interstate commerce law, and the regulations thereof. Express and sleeping car companies are brought under government control by this act, which will necessarily do away with any discrimination or unreasonable charges by either of these companies. Switches and terminal facilities are brought under the provision of this law expressly, so that there can be no question now as to the control of all matters relating to those facilities. Also all freight depots, yards and grounds are brought under its provisions. All private cars, such as refrigerator cars and the ventilation and icing charges are put under the supervision of the commission, and the carrier is specifically required to furnish transportation upon reasonable request. This Includes the furnishing of cars. Hitherto the law has only applied to the discriminations in furnishing of cars. Now a shipper is not required to show discriminations. He can assert his legal right to have the cars furnished him within a reasonable time. This is a provision of great benefit to the public. The carriers under this law are required to establish through routes and just and reasonable rates applicable thereto, which is an additional benefit to the public. One of the great complaints as shown by the report of the Commissioner of Corporations on the i oil business, was that the carriers were in combination with the Standard Oil company, and would refuse to pro-rate a shipment of oil for an independent company. Under the present law this I difficulty is removed. Common carriers are prohibited from transporting ak interstate business any commodities which they own or manufacture except for their own use. The principal purpose of this Is to prevent the railroads from engaging in outside business and marketing their own products to the detriment of some competitor in such outside busi- | ness. This especially affects the railroads which own and control vast coal mines. By owning the mines they can fix the price of coal to the public to a large extent, and also manipulate their accounts so as to cover up either the profits of the rallrtmds or of the mining business. Carriere are under this law required to put in switch connections, with private sidetracks, upon reasonable terms. Wherever a person has a mine or a

factory the carrier must give him railroad connection. Formerly it was in the power of the railroads to discriminate against any mine or factory, and refuse to give them switch connection. Discriminations in quality of service are also prohibited by this act. A number of Southern states have laws requiring the railroad companies to have the so-called “Jim Crow" car. Under this law such cars must be just as good as any other car, and the accommodations in such cars must be the same as those in the other cars. This law prohibits changing of any tariff schedule under thirty days’ notice to the public and to the commission. This provision is of great benefit, and an improvement on the old law, which permitted an advance to be made on ten days’ notice and a reduction on three days’ notice. The commission may allow changes on less notice for good cause shown in particular cases. The object of this is to prevent discrimination through sudden changes in favor of particular individuals. This was called the system of midnight tariff changes, whereby the carrier would publish an extremely low rate, and as soon as the favored shipper had availed himself of it would place the rate back at a Ijigh figure. All charges for special services, including terminal, storage and icing, must be published. This prevents a combination between the carrier and the company furnishing or receiving such special service. The private cars are by Section 1 of the act made subject to law*, and by another provision it is required that all charges, w’hether made by the carrier or under its authority by a private car line, are to be published. Rebates are prohibited and the violation of the anti-rebate section is made punishable by imprisonment. This strengthens the act very materially, and goes to the root of a very great evil, for though many officers of railroads would risk being fined, very few of them care to stand the chance of imprisonment. The person receiving such rebate is also brought under a very strict provision, as the United States government can, within a perl-., od of six years, bring an action to recover three times the value of any rebate received' The government can at any time within the six years bring an action to recover three times the value of the accumulated rebate. The shipper, therefore, is liable to be brought into a federal court any time and required to pay greatly for his illegal advantages. Heretofore the Interstate Commerce Commission has been required to include in all of its decisions a statement of its findings of facts. Under the present law it only furnishes a statement of facts where it awards damages, thereby enabling it to shorten its decisions and promptly dispose of cases. When the carriers fail to agree upon a division of joint rates the commission may make a supplemental order prescribing a just proportion of rate to each carrier. The commission may establish a joint rate where no reasonable, satisfactory through rate exists. Where the owner of property transported furnishes any service, the charge therefor must be just and reasonable. and the commission is authorized to fix charges for such service. This reaches the shipper who furnishes the private car or branch line connecting with the main line. This bHI also gives the commission the authority to prescribe the forms of accounts and records, and the right to examine them. This is similar to the law governing the examination of national banks, and is a very important provision, as it makes the books and records of the carriers accessible at all times. Another very important provision of the rate bill is the section giving the commission the authority to send a referee to take testimony in any case. This changes the present clumsy system of requiring the testimony to be taken by the commission itself, and it enables them to expedite matters, get evidence and dispose of cases promptly. The receiving carrier is made responsible for all goods lost, damaged, etc. Under the former law, the shipper would have to locate the carrier responsible and suit it in the proper district, which often entailed great expense in locating the negligent carriers and in bringing the action at some great distance from home. This bill provides that the initial carrier is responsible, and that this carrier can recover from the negligent carrier. Any action brought by any carrier under this act must be heard by three or more judges. This includes also a hearing on an application for preliminary injunction. No injunction can be granted until the commission has had five days' notice. The court can be convened under the expediting act and appeals taken directly to the supreme court of the United States, in which court they take precedent over all cases except criminal cases. The bill which passed the senate with the approval of all but the two senators from Alabama, and one senator from Ohio, will go a long way toward correcting the abuses of the common carriers, and will prove a popular law with the people of all , parties. Where the bill is criticised it will generally be because it did not go far enough. However, it is a start in the right •direction, and will no doubt be strengthened and enlarged upon as time goes on. The Russian government has directed the local officials at Batoum to do everything in their power, to secure the arrest and punishment of the murderers of Vice Consul Stuart at Ba* toum last week.