Show of Railroad 1 1 T Rate T mm mm T Vie w Views lews o JLe J. J L I JOSEPH BENSON BENSOM FORAKER Was as as horn born Jul July j I SIG on fill a i fi farm 11 rm n 11 arna H Highland count county r Ohio enlisted Jul July 1 11 H 1 1 U us a- aa a tl in company A A. A ninth Eighty rc reg- reg k J Ohio volunteer ith it tt h regiment be hc served ed until the thet ther t r close of lf the thie war at which time 11 ho lie hl held III hi the lank of oC first lieutenant and hrc hi-evet captain was graduated from Cornell lI university Ithaca N N. Y July Jul 3 1 I 1869 was vas admitted to the bar hal and entered upon the thc practice of oC the Jaw law at Cincinnati Ohio October r 14 1 was a elected jud Judge e of or the superior court of Cincinnati in April IS 1879 9 r resigned on account of If ill III health May 1 I IS was elected United States senator January Januar 15 1896 to succeed Calvin S S. S BrIce and amI took his seat March larch 1 1 I was re elected January 15 1902 to succeed himself His term of service ser will expire March 3 1909 I TOn l EnS ss cs c CS Proposed talC Italo Hill Bill As s s t Cit Constitutional n HI Rights hl Mr 11 Pre President this proposed rate raie legislation cg raises of or the thc most I important questions we wc have had to todeal deal leal with since the civil war ar It is isso the of inc Ine in- in so o contrary to spirit our e c and of such uch and ro character th that t if not In its Immediate effect at least least- as H a precedent the consequences are lIkely likely like lIke- I ly to be he mo mot t unusual ano and reach far f j ing n 1 In n view of or these f facts I make malc no Dl u apolo apology y for taking the time lime 0 of oC h ho senate enate n peal at len t upon the subject t. t although U q-U lon s I I I I. my elf hr to the It legal Jegl l questions arising I rl a ud not M eak lot foi 01 y- y cl c only for fOl myself my- my self Jf 4 4 Railroad building in this count country I S I commenced about 1830 Its beginning begin begin- ning was as like that Uial which we are now witnessing as to electric railroads At the thc beginning all railroad railroad rail rall- road co companies were organized ed under the state slate laws and as a rule to build only short hort state Intra lines Jines The principal principal principal prin prin- connected d. d The Vile Thele cipal cities were ele first connect le less leg g important cunn connections followed Branches spurs and lateral lines came later In that mat early period the different railroads were so m o separate and distinct In iii their organization an au l an I operation and considered themselves cs such competitors of or each cuch other that thc they I resisted all tu suggestions of or cooperation co co- operation I It further Appears arS from this report oC ot tim the Intel Interstate Commerce commission commis cominis- sion Ion that there are jno about I individuals officers agents ag and em em- on the lla ie pay rolls of or the these e companIes companies com corn to whom these railroads pa pay payout out annually in salaries and wages was I about It Is further shown hown by this report that thaI the gross g grossI I r earnings s as- as aggregated almost t 2000 I L.- L. while their operating expenses ex ex- pen es amounted In round figures ules to that thai the net earnings s amounted In round figures ure to S S These figures sureH show the enormous almost Incomprehensible a aggregate regato of oC values ulues Invested ItI In railroad properties proper propel ties and the reach far r ing lug character of the business of oC the these e carriers the great Icat number of pelI persons In connection immediately employed tt t therewith and that there arc alC millions roil mil L lions of If people not immediately connected connected con con- wilh the railroads who arc are Interested in iii thc their 1 prosperity as holders holders hold hold- ers CIS of oC their securities and antI otherwise S It Is not lo tO be 10 wondered at nt that the jhc f r of such Much great It at Interests i i I should have been attended cd with lUt many abuses and evil practices f While all thin Is t true there ar are I nevertheless instances perhaps k man many mans in lit the whore where rules rates in iii rind and of themselves arc are excessive anti and yet t comparatively U lly these arc are but iut few and unimportant This rids Is shown h by the tf testimony of If f all who haJ ha have havo J 1 spoken CeO on 00 the subject The Interstate Interstate Inter Inter- state Hato Commerce commissioners In their annual reports have ha repeatedly stated In effect what the they said in their th h report for tOL 1893 that extortionate extortion 1 ate ato charges charge are aru rc seldom the subject of complaint and and- that rates that rates as aM a whole are arc low enough l. S On this subject President Pr lIons lIons-c- noo lt fl said in h his lih remarks to the railroad rail rail- road who called upon him himat at the White HoU House e in November I 1305 05 to lo protest a against aln t this proposed ed edle le legislation on the ground that they e feared it Il ml might hl prejudice them thom b by t pulling their theil wages In jeopardy Thero has hax been comparative ve little j to me inc of or C the railroad rates rate lein ux UH a ah h whole le loo 00 hl high h 4 The Thc Elk lp law has ha proven a It most q f en efficient measure for COL good and that since Its Ih pa- pa paI I e lh tiC practice of I In rebates and allowing among has haK been lal largely large large- ly discontinued and arid that In s-o s far faras faras as as- there al' al are arc sun still violations of the of that character the they can can be broken up un altogether li b by a a. mere en enforcement enforcement en- en I of its provisions Such was the general situation l when in December 1904 a demand arose for forIt It legislation n giving the rat making rate power po to the stale interstate Commerce commission lon This d demand mand had no nu place h In the dI discussions of the I cal ral campaign of or that year rear It was i not heard of until after aCter the election It had bad been set sot forth a number of oC times thues In a general way In Democratic platforms but It never commanded any an serious attention until the President President dent lent mentioned It In his annual message His Ills popularity was so great and amI he so 80 thoroughly commanded d the confidence of all classes of people that there there- was an Imme immediate and very general acceptance of his recommendation dation This found expression lon in the Townsend Esch bill which passed the house linus-c at nt the last lust session almost un unanimously un- un but failed to receive favorable favorable favor favor- able sho consideration In the senate The Thc I President r renewed his r recommendation I tion 1011 in his Ja last st annual maa massage e and the house house- has with now no even greater greatel unanimity pa pasted passed ll the Hepburn- Hepburn bill I S S S During During- the whole period of or our country's s existence no one down Iowa to to this moment has ever claimed or even suggested either at the bar or 01 oron oron on the bench clonch that It was tho the Intention lion tion of the framers of the tion to confer on congress by hy the commerce clause power to lix rates of compensation for fOl the carriage of passengers ers or freight In foreign com corn commerce merce S. S a aBut But If it should be he that I am mistaken mistaken mis mis- tal taken en In claiming that tho the power CI to fix lix rates rales I Is not comprehended within th th-a th power lu to regulate interstate commerce commerce com corn merce and It be assumed that congress congress con con- gress s has the power I to to fix the compensation com coin of a carrier for COI the transportation transportation trans trans- lIe he sells then the further question arises arises- how shall shaH congress exercise that thal power lOWer Manifestly It If I is utterly impossible totS for congress h by r statute to fix lix rates for Cor interstate commerce In all the le legislation of oC more than th thana a century no such uch proposition has hax ever evel before been heen successfully ly presented present present- ed lo to the lIw American congress S It would be he an ah absolute dl disaster to tho the country coon coun try If Ir It H should be bc successfully p presented pre pIe rented no now were It not that it Is Impossible for fOl such a measure to re receive receive re- re the sanction of or the courts not alone because of or the bad results which would follow follo from flom this thit particular lar Jar legislation but hut also ahm because if such a commingling lIn of oC power can be le sustained as ax to lo legislation of or this vastI vastly vast vast- I ly 13 Important character it will be he a precedent of or such commanding force that it will be he idle to ever hereafter in connection cOlln with legislation talk lalk about three Independent and coordinate co or departments of nf government the powers of which are arc not to 10 be d blendt-d and merJ merged It will be a fitting filling time when we vote yote on this bill In to demonstrate that there are an still three departments of government go and that they are arc still as our fathers intended separate and Independent a as aswell well as co The effect of this provision can not be lie avoided a by b a a Juggle lc of fir words wons In- In lond d to lo show sho that the commission does docs not fix an any specific rate and put It Into operation hut but only lillY that It names a rate which In iii Its jurg- jurg ment Is Is- Is Isa a reasonable and just rate and amul thereupon the law lav operates to give he that judgment ment effect as a t maximum m maxi mum rate for the fact act remains that It Is the judgment of or the commission commis sion slon and not the the- judgment of nr ConTress Con- Con Tress that thai prescribes the rate and amid according to the best t authorities that thatis is fatal to the measure S S S Now ow as to the time application of or all this Ibis If conTe congress j undertake UI to exercise exercise exer exer- cise else Its Ih power to regulate Interstate commerce It must exercise e that power subject to all tho restrictions and limitations imposed upon It IL by br the Constitution It U must t. t e. avoid a in the exercise of or this power to re regulate coming In conflict with any other cOlU constitutional provision that has application to lo It S S S SIf If Ir Irn an n order bo he made malIc that a a carrIer shall charge charo only a c certain rate rale for forthe the transportation of a certain article between given points o el every charge ofa ot of ota ota a different rate for such will be he a separate offense There may be therefore many offenses for foi each day dar Ia that the tue order I Is not ob ob- ob- ob served lh There Ho will surely be he a as man roan mana a 8 there are arc shipments charged for forat forat or I at a rate And Ami there will ill be as man many I more n as ae there thOro are alc agents etc of the tHo carrier nr IJ In the of of- onse Upon thIs theory tho the result to the railroad would be e a an as man many penal- penal 4 44 4 tt 4 44 4 f 4 4 4 44 4 4 4 1 44 4 4 4 4 4 I 4 No o question before congress has attracted moro more general attention than has lie rate ralo bill hili As AsI 44 4 4 reported it provides that If ft fl shipper feels unjustly oppressed by y the thc I rate ralo to exacted of him h by a railroad roll rail 4 I 4 road company compan ho lie ma may appeal to lo the Interstate commerce lon for 01 s. es-s. The rite commission 4 4 will hear heal both skIes sides will Il fix a rate ralo which In its Judgment J Is equitable Under certain conditions s 4 Those These condItions arc are now IlOW mailer of uC amendment Pending a n 4 4 either side may appeal proposed court It Is the contention of the of the Ume bill that the commission 44 4 t- t hearing bearing b by liy the lie Federal I the sponsors It Is held the old uld rate rale shall stand until the Is concluded and antI antII 44 4 Ii 4 rate rale shall stand stant By ly some ome Il aton I 4 If It the railroad com company pan loos looses looss s It Is to I refund to the time shipper the excess of or amount charged over 4 I 4 the declared mae rale Perhaps the most favored orel a plan huiatt Is to have the excess s paid palt into court COUlt and hold held holt 44 4 4 In iii escrow until the suit Is determined Senator of Iowa Io Is champion of the measure neasure Sen- Sen elator el- el 4 I 4 ator el o of Ohio Is opposed to lo an any tate rate re regulation of uC the sort proposed In thc he pending lull bill hiI 4 4 The Inter Iller Republican presents today Illustrative from flom both bolh addresses r addresses Mr FotI ForI For For- 44 4 I 4 akers aker's having been delivered Feb 26 G and und that of oC Mr Mm MI Doll er Feb 27 j. j I 44 4 f 4 i 4 4 4 tt tIes of each as there were we ship ship- at al rates oth other r than limn those prescribed pres- pres i 1 h by the tho thC commission lon Increased I IhY bv by the th number of agents et etc 1 participating In the offense e There Thero might be ten len or 01 twenty or OJ a hundred of or the these e offen offenses cs 0 or even thousands in ill il a single day lay On top of or all this In Ii II las inso ase of a continuing violation there is is I to be for or each cach day an nit additional 1000 It IL I has been claimed that the in of a continuing nth entire penalty case I violation Is to be only a day But assuming that this construction Is I correct then the lie penal penalty prescribed v be per pe er ta day or 01 oral at the rate rale rte of o per month S S S SIn In a given case a f dollar II might hl be a would become point at al which a rate extortionate and 60 GO cents a point at nt which a rate rato would become con ca clory c lory v A rate rale anywhere between these thes f figures ules would be in a legal logal sense ense tho the of i and beyond power tho he courts coults without special statu statutory tor to review It i. i because it expressed ex ex- pressed the legislative will will If l the therle rate were wele fixed at 90 cents It might yield a i 1 net revenue to the carrier o of G 6 per cent If I fixed at 80 SO cents a net revenue Ie of A 1 per lel cent if IC fixed at 70 cents a net revenue of 2 p per pei 1 cent If fixed at al GO 60 cents no revenue at al all Even C G per cent might be be under certain eel tam tain circumstances an unreasonably low return for UI the carrier canler Much more might this be true as to lo toI I 1 I per cent centor or 2 per cent and yet et as th the II bill bi Is framed the courts are arc denied Jurisdiction tion to review all al such questions and andIn andIn In iii lon this denial there is strong probability proba proba- if not absolute certainty certainly that great and Irreparable wrong ma may be done Vh Why should this jurisdiction be withheld from the courts Who Vho distrusts distrusts dis dis- trusts them Only violators of or the law have ha e ever had occasion to fear Ceal the justice they admInIsterS administer The They have hC c been from the tho beginning of oC the I Common law the sure bulwark of the tho liberties and und rights of or the Anglo- Anglo Saxon race Unmoved ed b by passion prejudice or O public clamor the they have ever eVel been the conservative steadying rea reassuring factor In American government govern govern- ment All Al this is is- intensified by the fact that In the law as it now stands th there Ie is a complete provision for COI this review revlon a as well vell as for Cor the thc protection of t the right ht of trial b by Jury S S S SNo No o wonder vonder the tho committee felt Cel constrained cop con strained In concluding Its report to say that that that- No member of or the thc committee interstate and foreign Jel n commerce bo- bo that the provisions of this bill bl will 1 be tic satisfactory to lo al all pel persons ons who may mar be |