President Hadley thinks one hearing is enough, provided it is a hearing before a court, not before the Commission. Like the railroads, President Hadley has no use for the Commission. The reason perhaps is the conscious or subconscious appreciation of the fact that rate-making involves a vigorous administrative element, which the Commission has shown a tendency to use with great effectiveness, while a body constituted as a court, by its very nature and traditions, is loath to exercise administrative power or in any way disturb its exercise by the companies except on the clearest kind of proof of the adequacy of the new rate or condition proposed, which cannot in many cases be obtained at all except by bona fide trial of the new rate or regulation, since a rate that is even below the present operating cost may develop traffic enough to give it ample justification. Courts do not like to trust to future proof. If rates do not seem justified on existing facts as shown by accounts presented by the companies, the courts are apt to turn the new rates down without a trial, as the United States Supreme Court did in the Nebraska case when the law of that State fixing rates on local traffic was declared unconstitutional. The companies made the division between through local costs to suit themselves, and the Court not only accepted their figures, but neglected to take into account the fact that lower rates might easily develop new traffic enough to cover the slight additional margin needed even on the companies’ own showing.
President Hadley says: “What the United States needs is an act under which the Commission will take part in the making of tariffs and give effect to the public interest in the general questions of railroad management, leaving the specific cases of violation to be stopped or punished by the courts.” Very good. But how is the Commission to take part in the making of tariffs? If it is to do any more than to give advice (the efficacy of which is nil when it comes up against the Beef Trust, Standard Oil, or other big private interest), it must have authority, general or particular, to fix rates when the railways do not make them just and reasonable. In England Parliament fixes maximum rates on the basis of Board of Trade studies, and the commission acts as a court. The plan has not prevented either discrimination or extortion, but has taken the life out of the railways to a large extent. In this country it is proposed to try the plan of letting a public board fix individual maximum rates when injustice is shown. As there is an appeal to the Federal courts and as Hadley declares that the courts insist on retrying questions in their entirety, it would seem that the very system President Hadley advocates would really come into being under the Hepburn Bill,—the Commission will have a part in fixing the rates, and violations of law will really be determined by the courts.
INDEX
[References are to pages.]
- A
- ACWORTH, W. M., Appendix [B].
- ALABAMA MIDLAND CASE, [95].
- ARMOUR CAR-LINES, [151], [174]–207.
- mileage, [175], [188], [190].
- speed of cars, [177], [178].
- passes, [180].
- exclusive contracts, [177], [180], [182], [190].
- icing charges, [181]–186, [194]–196.
- espionage, [185].
- fixing rates, [186]–189.
- lax inspection, [188]–189.
- low minimum carload, [189].
- rebates and profits, [190], [191], [194].
- cipher code, [197].
- AUSTRIA, [315].
- B
- BACON, E. P.,
- testimony, [111].
- BAKER, RAY STANNARD,
- on Beef Trust, [153].
- BALTIMORE,
- discriminated against, [226].
- BARBED WIRE CASE, [88].
- BASING-POINT SYSTEM, [98], [208] et seq.
- BEEF,
- billed for export, [225].
- BEEF TRUST. (See Armour.)
- BELGIUM, [315].
- BIDDLE OF SANTA FE,
- BISMARCK, [316].
- BLANCHARD, GEORGE R.,
- “BLIND BILLING,”
- Standard’s cars, [75].
- BOOKS DESTROYED, [248]–250.
- BOSTON & ALBANY, [105]–107.
- BOWIE COMPRESS, [68].
- BRICK CASE,
- New Jersey to North Carolina, [157].
- BROKERS, TICKETS, [20].
- C
- CALEDONIAN COAL CO., [126]–129.
- CALIFORNIA FRUIT TRANS. CO., [180].
- CAMDEN IRON WORKS,
- rebates, [122].
- CANADA, [327].
- CANNON FALLS CASE, [212].
- CAPITAL CITY GAS COMPANY’S REBATES, [164].
- CARLOAD, MINIMUM, [189].
- CARLOADS & L. C. L., [156].
- CAR-MILEAGE,
- CARS DENIED, [66], [160].
- CASSATT, A. J.,
- CHAOS OF RATES, [156], [157].
- CHARLOTTE, N. C., CASE, [208].
- CHATTANOOGA CASE, [97].
- CHESAPEAKE & OHIO,
- CINCINNATI MAXIMUM RATE CASE, [218].
- CIPHER CODE,
- Armour, [197].
- CITIES,
- growth of, at expense of country, [219].
- CLASSIFICATION,
- COAL,
- COCKRELL, COMMISSIONER,
- COLORADO FUEL & IRON CO.,
- rebates, etc., [124]–141.
- COMMODITY,
- COMMON LAW,
- requires impartiality, [1].
- CONFISCATION,
- fears of, ungrounded, [290].
- CONTRACTS,
- COOLEY, THOMAS M., [43].
- as arbitrator, [152].
- CORDELE, GA., [100].
- CORRIGAN OF CLEVELAND, [34].
- COTTON-SEED-OIL CASE, [162].
- COYNE BROS., [183].
- CUMMINS, GOVERNOR, [117], [211].
- D
- DANVILLE, VA., [209].
- DAVIES OF CHICAGO,
- strawberries carried free, [145].
- DAVIS, C. WOOD,
- passes cost $33,000,000, [12].
- DEAD-HEAD,
- DECADE OF FEDERAL REGULATION, [104]–109.
- DEFIANCE OF LAW, [238]–240.
- DEMURRAGE, [143].
- DENMARK, [315], [328].
- DENVER,
- DEPEW, CHAUNCEY,
- on pooling, [267].
- DEPRECIATION OF LANDS CAUSED BY REBATES, [26].
- DISCRIMINATION,
- motives for, [23].
- history and investigations, [24], [120].
- early cases, [25].
- varieties discovered by I. C. C. first year, [47].
- H. F. Douseman, [54].
- passes, [2]–15.
- reasons for, [2].
- C. & O. coal, [64], Appendix [A].
- great number of, [2].
- in facilities, [66].
- by classification, [70], [155].
- confiscates land values, [26].
- Hepburn cases, [27] et seq.
- Standard Oil, [73]–76.
- beef, [76]–83.
- between localities, [87]–94.
- in favor of long hauls, [95]–103.
- Industrial Commission on, [108].
- “all stopped,” etc., [113].
- under Elkins Bill, [115]–118.
- Colorado F. & I. Co., [124].
- various other forms, [142]–149.
- commodity, [150].
- horses, cattle, and Jersey brick, [156]–157.
- to Beef Trust, [151]–152.
- oranges, [153].
- hay and lumber, [154].
- routing, [159]–160.
- refusal to furnish cars, [160]–161.
- cotton oil case, [162].
- division of rates to fake terminals, [166]–173.
- in refrigerator charges, [181]–186.
- against independent oil, [201]–205.
- against non-competitive points, [208]–215.
- against New England, [217].
- against rural points, [219].
- against certain cities, [216]–217.
- in favor of foreign commerce, [221]–226.
- summary of methods and results, [228] et seq.
- $10 apiece for hams? 232.
- defended, [233].
- disturbance of business, [236].
- “cannot be stopped,” [237].
- difficulties of abolishing, [241]–251, [272]–273.
- countries where there is none, [315], [317].
- DISTANCE TARIFF, [287], [291], [293], [295].
- DIVISION OF RATE. (See Terminal Railways.)
- DOLLIVER BILL, [257].
- DOLLIVER, SENATOR,
- DOUGLAS, GOVERNOR,
- pays his fare, [11].
- DOUSEMAN, H. F., [54].
- DRESSED MEAT,
- %center%E
- “ELASTICITY” IN RATES, [286].
- ELEVATOR ALLOWANCES, [62], [148].
- Industrial Commission on, [63].
- ELKINS ACT,
- ELKINS, SENATOR, [111]–112.
- EMPIRE CO., [31].
- EMPORIA, KAN., [91].
- EMPTIES,
- ENGLAND, [318]–327.
- EQUALIZATION OF RATES, [291]–296.
- ERIE ROAD,
- early cases, [28].
- ESCH-TOWNSEND BILL,
- ESPIONAGE, ARMOUR, [185].
- EXCLUSIVE CONTRACTS,
- EXPENSE BILL SYSTEM, [62], [143].
- EXPORT RATES,
- F
- FACILITIES DENIED, [66], [88], [160].
- FALSE BILLING, [61], [144].
- FERGUSON, E. M., [199].
- FICTITIOUS CLAIMS, [143].
- FINK, ALBERT, [267], [271].
- FISH, STUYVESANT,
- FLAT RATES, [291]–295.
- FLOUR AND WHEAT, [70].
- FOLK, GOVERNOR,
- on passes, [6].
- FORAKER BILL, [258].
- FOREIGN COUNTRIES, HINTS FROM, [313]–330.
- FOREIGN MANUFACTURES FAVORED, [84].
- FRANCE, [317].
- FREE CARTAGE, [59].
- St. Louis cases, [142].
- FREE FREIGHT, NO BILLS, [145].
- FREE STORAGE, [60].
- G
- GEORGIA,
- Railroad Commission cases, [98].
- GERMANY, [316].
- GLASGOW, [314].
- GOVERNMENT,
- GOWAN, FRANKLIN B.,
- on railway favoritism, [235].
- GRAIN,
- price controlled by roads, [63].
- GRANGER LAWS, [26].
- GRANT CHEMICAL CO.,
- free cartage, [142].
- GROSSCUP, JUDGE,
- on discrimination, [233].
- GULF PORTS, [225].
- H
- HADLEY, A. T., [14], [219]–315.
- on Hepburn Bill, Appendix [B].
- HARVESTER CASE, [135].
- terminal road, [169].
- HAZEN’S SWITCH CASE, [141].
- HEARST’S BILL, [260].
- HEPBURN BILL, [262], Appendix [B].
- HEPBURN REPORT, [27].
- HILL, JAMES J.,
- HINTS FROM OTHER COUNTRIES, [313]–330.
- HOLLAND, [328].
- HOPE COTTON OIL CASE, [162].
- HORSES, CHAOS OF RATES, [156].
- HUNGARY, [314].
- HUTCHINSON SALT CASE, [167]–169.
- I
- ICING CHARGES, [181]–186, [194]–196.
- IMPORT RATE CASE, [85].
- IMPORTS AND EXPORTS, [84].
- INDUSTRIAL COMMISSION,
- INGALLS, M. E., [104], [239].
- INSPECTION,
- of Armour cars, lax, [188]–189.
- INTERSTATE COMMERCE ACT, [41].
- INTERSTATE COMMERCE COMMISSION,
- created, [41].
- chapter on, [43].
- first report, [43]–46.
- on long haul, [96], [102].
- overruled by Supreme Court, [96].
- orders disobeyed, [100], [153].
- rates condemned by, [102].
- ten years of regulation, [104]–109.
- complaints received since Elkins Act, [117].
- on effect of Elkins Act, [118].
- on terminal roads, [170].
- railways public facility, [234].
- bill before Congress, [261].
- criticised, [276].
- alleged errors of, [279].
- work of, [280].
- appointments to, controlled by Senate, [289].
- on equalization of rates, [293].
- INVESTIGATIONS, [24], [120].
- (See Interstate Commission.)
- IOWA LONG AND SHORT HAUL CASES, [211].
- J
- JAPAN, [328].
- JUDSON & HARMON REPORT ON SANTA FE, [133].
- K
- KANSAS,
- KAOLIN, [225].
- KEARNEY, NEB., [90].
- KELLOGG ELEVATOR CASE, [148].
- KINDEL OF DENVER, [93], [297].
- KNAPP, I. E., [204].
- KNAPP, MARTIN A.,
- %center%L
- LA FOLLETTE, GOVERNOR,
- investigations, [120].
- LAKE SHORE,
- cuts beef rates, [80].
- LARRABEE, GOVERNOR, [27].
- LAW, DEFIANCE OF, [238]–240.
- LAWSON, THOMAS W., [228].
- LINCOLN (NEB.) PACKING CO., [82].
- LOCALITY DISCRIMINATIONS,
- LOMBARD, JOSIAH,
- testimony, [32].
- LONG AND SHORT HAUL CASES, [25], [27], [29], [47], [76], [87], [91], [92], [95]–103, [208]–215.
- LONG HAUL,
- M
- MAINE,
- legislators have passes, [8].
- MASS. RAILWAY COMMISSION,
- report on Boston & Albany, [106].
- MAXIMUM RATE CASE, [218].
- McCABE, A. C., [56], [77].
- MEAD, J. D., & CO., [184].
- “MEM. BILL” METHOD, [163].
- MESSAGES,
- President Roosevelt’s, [256].
- MIDGLEY, J. W.,
- MIDNIGHT TARIFFS, [76], [147].
- MILEAGE PAYMENTS ON CARS,
- MILK RATES,
- flat, [294].
- MILLING-IN-TRANSIT, [145].
- MINER, D. W., [163].
- MINNESOTA,
- investigation, [122].
- MISSOURI,
- eliminating pass evil, [7].
- MOFFAT, E. O.,
- elevator allowances, [149].
- MONOPOLY ELEMENT IN RAILWAY BUSINESS, [233].
- MORAWETZ, VICTOR, [115], [131], [247].
- MORGAN, J. PIERPONT, [64].
- MORRIS, NELSON,
- stock yards, [68].
- MORTON, PAUL,
- N
- NEWCOMB, H. T., [104], [282].
- NEW ENGLAND,
- high rates, [217].
- NEW YEAR’S RESOLUTIONS, [79].
- NEW YORK CENTRAL,
- early cases, [28].
- NEW YORK, NEW HAVEN & HARTFORD RAILROAD,
- NEW ZEALAND, [313], [329].
- NORFOLK (NEB.) CASE, [88].
- NORTHERN GRAIN COMPANY,
- O
- OIL. (See Standard Oil Company, Texas Oil, Kansas.)
- ORANGE,
- OUTLOOK, THE,
- quoted, [238].
- P
- PASSENGER REBATES, [17].
- PASSES, [2], [15].
- and politics, [3].
- Pennsylvania Railroad, [3].
- reasons for, [2], [9], [10], [13].
- legislators, congressmen, etc., [3], [5], [8], [10].
- refused, [5].
- Governor Folk on, [6].
- Governor Douglas, [11].
- jurors, [8].
- judges, [9].
- auditors, etc., [9].
- Missouri, [7].
- Maine, [8].
- Stickney’s sheriff story, [11]; Washington address, [13].
- Martin A. Knapp, [13].
- Paul Morton on, [13].
- A. T. Hadley, [14].
- C. Wood Davis, [12].
- in foreign countries, [14], [15].
- held unlawful, [46].
- within a State, [49], [50].
- owners of private cars, [180].
- PATENT MEDICINE CLASSIFICATION, [71].
- PEARLINE CLASSIFICATION, [71].
- PENNSYLVANIA RAILROAD,
- PENNSYLVANIA STATE CONSTITUTION,
- prohibits passes, [3].
- PHILADELPHIA,
- passenger case, [217].
- PHILADELPHIA NORTH AMERICAN,
- PLACE DISCRIMINATIONS,
- POOLING,
- PRIVATE CARS,
- PROCTOR & GAMBLE CASE, [155].
- PROTECTIVE TARIFF,
- PROUTY, COMMISSIONER,
- PRUSSIAN CABINET STATEMENT, [316].
- PUBLIC v. PRIVATE INTEREST, [308].
- PULLMAN CARS,
- mileage rate, [58].
- R
- RAILWAY OFFICIALS,
- as law breakers, [238]–240.
- RATE REGULATION,
- RATE SCHEDULES DECEPTIVE, [148].
- RATES,
- REAGAN CASE, [285].
- REBATES,
- RECORDS DESTROYED, [248]–250.
- REFRIGERATION CHARGES, [181] et seq.
- REFRIGERATOR CARS, [174]–207.
- REFUSAL,
- REGULATION OF RAILWAYS,
- REMEDIES, [252], [300].
- RICE, GEORGE,
- RIPLEY, PRESIDENT E. P., [135].
- RIPLEY, PROFESSOR W. Z., [116], [208].
- ROBBINS OF ARMOUR CAR-LINES, [192].
- ROGERS COAL COMPANY,
- denied cars, [66].
- ROOSEVELT, PRESIDENT,
- ROUTING,
- S
- SALT LAKE CITY, [212].
- SALT TRUST CASE, [167].
- SANTA FE,
- SCALPING, [19]–20.
- SENATE COMMITTEE OF 1885, [37]–41.
- SENATE COMMITTEE OF 1905, [111]–117.
- SIMMONS HARDWARE COMPANY, [142].
- SOAP CLASSIFICATION, [71], [155].
- SOCIAL CIRCLE CASE, [100].
- SOUTH AFRICA, [329].
- SPECULATION IN LAND AND TOWN SITES, [90].
- SPOKANE, WASHINGTON, [91], [213]–215.
- SPRINGFIELD REPUBLICAN,
- Pennsylvania passes, [4].
- STAMP MILL FROM CHICAGO TO SAN FRANCISCO VIA CHINA, [223].
- STANDARD OIL COMPANY,
- STATE OWNED RAILROADS,
- STATE RAILWAY COMMISSIONS, [254]–255.
- STATE TRAFFIC, [142].
- ST. CLOUD, MINNESOTA, [90].
- STEEL RAILS,
- export rates on, [222].
- STEEL TRUST TERMINAL RAILROAD, [171].
- STEWART, A. T.,
- rebates, [28].
- STICKNEY, A. B.,
- ST. LOUIS,
- discriminated against, [216].
- STOCK YARD GRAFT, [68].
- STOPPAGE-IN-TRANSIT, [60].
- STRAWBERRY CASE, [174]–175.
- “STRAW MAN” SYSTEM, [142].
- STREYCHMANS, H. J.,
- testimony, [195]–198.
- SUBSTITUTES FOR REBATES, [57].
- SUMMARY OF METHODS AND RESULTS, [228].
- SUMMERVILLE CASE, [99].
- SUWANEE CASE, [208].
- SWIFT AND COMPANY,
- indicted, [76].
- SWITCH DENIED, [163].
- SWITCHING CHARGES, [140].
- SWITZERLAND, [315].
- T
- TARIFFS,
- 1000 changes daily, [288].
- TAX,
- Wisconsin roads, [120].
- TERMINAL CHARGES, [59].
- TERMINAL RAILWAYS, [118], [166].
- TEXARKANA CASE, [162].
- TEXAS AND PACIFIC CASE, [84].
- TEXAS OIL DISCRIMINATION, [201].
- TEXAS RAILWAY COMMISSION, [105].
- TICKET SCALPING, [19]–22.
- complaint of, by I. C. C., [50]–51.
- TIES,
- TRAIN LOADS, [234].
- TUTTLE, PRESIDENT,
- U
- UNION PACIFIC,
- steel rail rate, [72].
- UNION STOCK YARDS BEATS RIVALS, [68].
- UNITED STATES SUPREME COURT,
- Counselman case, [52].
- discriminations, [59].
- import rate decision, [85].
- ruled that I. C. C. cannot fix rates, [92].
- long-haul decisions, [95].
- Social Circle case, [100].
- maximum rates, [218].
- on pooling, [270].
- reversals of I. C. C., [283], Appendix [A].
- coal-carrying case, Appendix [A].
- orange routing case, Appendix [A].
- V
- VANDERBILT, W. H.,
- W
- WATSON OF PORTER BROS., [191].
- WILLCOX, DAVID,
- criticism of I. C. C., [279].
- WISCONSIN,
- WORCESTER WIRE CASE, [292].
[1]. See New England Exp. Co. v. Maine Central R. R., 57 Me. 188; Fitchburg R. R. v. Gage, 12 Gray (Mass.), 393; Kenny v. Grand Trunk R. R., 47 N. Y. 525; Messenger v. Penn. R. R., 8 Vroom (N. J.), 531; Chicago, etc., R. R. v. People, 67 Ill. 11; Wheeler v. San Francisco R. R., 31 Cal. 46.
[2]. Pass discrimination alone, it is estimated, amounts to some 200,000 free transits a day, or over 70 millions in a year. And as for freight discriminations, the reader who follows this history through will see that like the leaves of the forest they defy computation. Just a hint may be given here. Every day that one of the 300,000 private cars is carried at the present mileage rates, a discrimination is made in favor of the owner of the private car,—a hundred millions of unjust discriminations, possibly, in this one item.
[3]. The New York Central, Baltimore and Ohio, and some other lines announced the same purpose as the Pennsylvania in respect to passes after January 1, 1906, but with them as with the Pennsylvania it appears to be a case of more careful discrimination in the use of discrimination, and an appreciation of the fact that it is very important to make a good impression on the public mind just now, in view of the widespread demand for drastic legislation in the direction of railroad regulation.
[4]. A number of the States have laws against passes. The Interstate Commerce law forbids them. And they are always against the moral law whether they run beyond the State line or not.