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GEORGE W. BERGE, EDITOR AND PUBLISHER
Volume 18
Lincoln, Nebraska, September 7, 1905
Number 16
Constitutional
A TT7H
. tor an Jzue
Amendment'
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i f V V il U LP U U U U qjr U V u u
'A year from now the voters will be called upon to decide at the
polls whether ' thev want i an : elective railway commission for Ne
braska. While the subject ' has' not been discussed with any great
degree of interest as yet, it may be accepted as practically cerium
that the vast majority of Nebraskans are in favor of such a .'-com-
- j n amA- flibf' if hn orivpn those nmvprs which are
1D1SS10I1 allu Will ucuiaiiu iutu " ts " r - , . , . -
considered by thoughtful people absolutely necessary for the proper
regulation of the railways, viz., thejiower to preveut.-aU-diserimiaat
tions and the power to fix rates. "" .
All who" have studied the railway question, except those who
are personally interested in defending and supporting the railways,
believe that 'these powers should be given to a government com
mission. That congress, having the right to regulate commerce be
tween the states, has the right to confer such powers,-is no longer
questioned, inasmuch as Attorney General Moody, after an exhaus
tive inquiry, reached the conclusion that congress possesses the widest
latitude in exercising its control over interstate commerce. '
' If .the government commission is to meet with success in fixing
interstate' rates it must receive the support of state commissions hav
ing the power to fix local rates, for there would be a constant tempta
tion on the part of the railways to raise local rates whenever their
through rates were lowered. With the work of the national com-
Nebraska local and
through rates affecting Nebraska shippers could be much more effect
ually regulated and harmonized thanaf no state commission existed.
The people of Nebraska will be the more eager to secure a
railway commission in view of the fact that the present maximum
freight rate. law, is not being enforced." As The Independent has
pointed out frequently this law; ; while -in . abeyance as a result of
ti'i.
United States supreme court's ruling that its rates were con-
fiseatory in 1807, which had the effect of sustaining the circuit
'court's injunction preventing the law's enforcement, is still on the
statute books and has never been declared unconstitutional. It can
and should-be revived, but the attorney general lias seen fit to dis
regard the demand ttiat .the "maximum rates be placed in effect by
'appropriate legal steps for the dissolution of the injunction.
' Under the law of 18S7 the state had a railway commission with'
limited powers, but among these powers was the right to make fair
"and reasonable rates if in the judgment of its members the rates'
provided by the law should be considered too high. The railways
succeeded in prevailing upon the supreme court to declare uncon
stitutional the law creating the state board. At that time the impres
sion went forth, and was sedulously cultivated by railway spokes
men, that the abolition of the state board nullified the maximum
freight rate law. This, however, was far from the truth. Even
with' no state board existing the maximum rates of the .Newberry
law can be enforced, for the onlyTuiiwHant power possessed by the
board was the" right to make lower rateV than the Newberry rates.
The fact that the Newberry rates were considered confiscatory
in the hard times is no proof that the rates are confiscatory in 1905,
but it is a fact that gives the attorney general a chance to claim that
the law cannot be enforced. With no relief in sight through the
action of the attorney general the people will naturally look forward
to the time when they can establish a state commission that will
have the power to fix fair and reasonable rates. From now until the
constitutional amendment is submitted to a vote, the necessity of
such a commission should be kept in mind and the question should
be constantly agitated. 5
Futiwe
Commerce
During the progress of the war in Manchuria much was said
about the "Yellow Peril."- Predictions were freely made that if
Japan triumphed she would close the door in Asia and establish an
Asiatic Monroe doctrine. ;. It is too early to declare that this is not
Japan's program, but there are-some: indications that she is to follow .
1 a more enlightened policy. .;. - ;: t , , , . v
The withdrawal of her demand for indemnity places the. island
kingdom of Nippon in the position of a great debtor nation. Unable
tr liquidate the enormous war debt without utilizing her, industrial V
resources to the utmost, Japan must be careful to manage her affairs
in a business-like manner. ; Arrogance arid exclusiveness, ' the high
hand in Asia-and a selfish commercial' policy, will not conduce to
' Japanese prosperity. Even though-she be defended -from all perils
of unwarranted attack as a result of the new" treaty with England, '
Japan will find it necessary to gain friends throughout the world.
;It was regard for her commercial interests that moved Japan to make
great sacrifices for peace and it is to be hoped that the same consid
eration will ide! her aright Hn; dealing with the nations who will.
continue to seek an outlet fori their trade in the Orient. .-. ,
.'-.." Every consideration of historic friendship - ) should influence .
1 Japan to remain shoulder to shoulder with tho United States,- but "it
must be admitted that there hk sure .to bet pronounced commercial v'
rivalry between the two, nations for the trade of China. In the next
few years Japan's manufacturing interests will grow apace. She
will have two powerful elements always at 'work to give her the
advantage over the United States cheap labor and proxmity to
China. Efficient labor, aided by inventiveness and exhaustlesa
energy, is cheap labor,' and such labor the United States possesses'.
This may neutralize the effect of Japan's cheap labor. How we are
to neutralize the effect of proximity, however, is not clear. r
For a long time to come our agricultural products will be
required in China. Japan, of course, will be unable to furnish
more than an insignificant supply. In the long run, however, the
awakening of China means. China's agricultural development, and
that, in turn, means that China will grow all she needs for homo
consumption. '
It is evident, therefore, that the trade of the orient is precarious.
The United States has been forced to seek this trade because Europo
, i3 producing such a supply ; of manufactured goods that her peoples!
cannot use all .the surplus goods we can make. But the chief foe of;
our trade in Europe is the protective tariff. It keeps out not only
.our manufactured goods but our agricultural products as well. Even
those commodities not produced, in Europe, or . produced in insufa
chjnt quantities, are imported from our commercial rivals. Tariff