the Reagan substitute , as I have shown ,
is not only not distinguished by this
unity and integrity of purpose , but is
complex and contradictory in some of
its essential features. '
The Inter-State Commerce Commis
sion disclaims any intention or desire to
make rates for the railroads , but claims
that unless it is empowered to say to
what extent a rate is unreasonable and
enforce its decisions , it is virtually
powerless , and that the public interests
suffer by a lack of such power. There
is grave doubt , however , whether the
grant of such power would be just or
advisable.
The Massachusetts Law.
The Railroad Commission of Massa
chusetts , the first state to establish such
a supervisory body , was not granted this
power , but simply that of investigation
and publicity , together with some ad
ditional powers , such as deciding
whether the construction of new lines
was advisable , and the amount of cap
italization , etc. This has resulted in the
New England states in a satisfactory ad
justment of the relations between
carriers and shippers. Complaints of ex
cessive rates or unjust discrimination
are fewer in the New England states
than elsewhere throughout the Union.
Carriers are earning satisfactory divi
dends , and shippers enjoy reasonable ,
. uniform and stable rates. The unjust
discriminations , which are a constant
source of complaint in other sections of
our country , are here comparatively un
known. I believe that if the Inter-State
Commerce law is amended by repealing
the prohibition of pooling , so that rail
road companies can enforce their con
tracts upon each other , and the InterState -
State Commerce Commission will limit
its activities to investigating and show
ing up unjust discriminations between
persons and between places , and thus
invoke the power of publicity and pub
lic opinion , backed by the courts , the
evil of unjust discrimination , which is
the chief one of which the public now
has cause to complain , can be gradually
eliminated.
The business of transportation is per
haps the most intricate one in existence ,
and the ways in which unjust discrim
ination can be effected are innumerable.
Chief among them are special rates and
rebates ; classifying one product lower
than another when conditions are sub
stantially the same ; underweighing and
billing ; minimum car load rates for cars
r of various sizes ; excessive mileage
charges allowed for private cars ; free
storage charges to favored shippers
which others are obliged to pay ; besides
other methods too numerous to mention.
In one of the investigations of the InterState -
State Commerce Commission a unique
method of getting business was de
veloped in the formation of a grain-
buying company. This is best described
by the testimony itself ;
Cause of Discrimination.
President Stiokney of the Chicago &
Great Western Railroad , was asked by
the Commission to explain how it hap
pened that his road secured all the grain
traffic in the territory reached , and that
his competitors received so small a share.
His general freight agent had been asked
the same question , and had replied
evasively. President Stiokney answered ,
with characteristic frankness , that his
road had organized a grain-buying com
pany , and shipped the grain purchased
by this company at its own convenience ,
instead of the convenience of the grain
dealers. By taking its own time for
shipments his road could carry grain for
the farmers more cheaply than his com
petitors in the pool. He stated that his
competitors did not carry grain for the
farmers , but gave cut rates to large deal
ers that forced all the traffic into their
hands. Addressing the attorneys of the
other roads , ho said :
'Here is the trouble : I have been ac
quainted with this northwestern coun
try for thirty-five years. In all that
time there has never been a year that
the corn crop was moved until the corn
was in the hands of the dealers who had
the rate. Once the farmer is compelled
to sell his grain , you fellows cut the rate
for the dealer. There is in Kansas this
year 240,000,000 bushels of corn , and
not over 25,000,000 bushels have been
moved this year , so far. The farmer
the small dealer has not the rate. He is
compelled to sell , and then you fellows
make the rate for the purchasers and
the corn moves. You charge the Kan
sas and Nebraska farmer thirteen cents
to haul his corn two hundred miles , and
you charge the grain dealer six cents to
haul the same grain twice as far to
Chicago. I tell you , that it is this kind
of business that is making anarchists
west of the Missouri river. '
None of these practices can stand the
light of publicity , und the Inter-State
Commerce Commission at present pos
sesses powers of investigation and com
pelling attendance of persons and the
production of papers , which , if persist
ently exercised , and railroads are given
the right to contract with each other and
enforce their agreements in the courts ,
the unjust discriminations which now
exist will be gradually eliminated. A
small rudder will turn a big ship with a
little time and sea room. This is a big
probleYn and requires time and the best
thought of the best minds in the coun
try to solve it. The Inter-State Com
merce Commission is not powerless. It is
performing a great work and with its
present able personnel will within a
reasonable time solve the problem better
without increased power or radical
action. If its members had permanent
tenure of office like the judges of our
United States courts , and were thereby
divorced from political and local in
fluences , it might be desirable to increase
their power , but until this be done it
seems wise to limit she power of the
commission to investigation and super
vision and let the courts decide the ques
tion , when it arises , of what is a reasonable - ' I
able rate.
VERIFICATION.
The following letter to the editor of
THE CONSERVATIVE throws some light
upon the question of our trade in the
Orient and its possibilities :
"I take pleasure in giving you some
figures in confirmation of your very in
teresting letter written from Chicago ,
May 29 , 1896 , while returning to Wash
ington after a short visit to this city.
In this letter you were pleased to speak
in complimentary terms of our harbor ,
city , and prospective commerce with
Japan. I quote your words 'the cotton
from the South ought to be discharged
from the docks of San Diego and then
transferred to a regular line of steam
ships destined for Japan. The day of
commerce between this country and that
is just dawning. Before it will have
reached the splendor and intensity of
its zenith , San Diego will have been
either confirmed or condemned as the
port through which all that vast volume
of trade must flow. ' At the time this
prophetic letter was written , not a ship
had ever left this port for the Orient ;
not a pound of cotton had ever been
sent from here to Japan. Now and for
the quarter ending April 1 , 1900 , there
is and has been an average of four ships
a month for the Orient with an-average
carrying capacity of 4,000 tons , and
usually laden to their full capacity ,
largely with cotton from the South.
Then , at the date of your remarkable
letter , such shipments were not contem
plated by our shrewdest business men ,
nor did they foresee that lines of steam
ships to the Orient from this port were
among the future probabilities , while
only one night's visit here presented to
your mind this important commercial
fact. During the quarter ending April
1,1900 , there were shipped from this port
to the Orient of cotton alone , 20,298
bales , 10,718,900 Ibs. , valued at $1,858-
000. These figures I have just obtained
from the custom house , and they estab
lish the dawn of the day which you saw
dawning four years ago. It is due , per
haps , to say that all the freight for the
Oriental trade is carried by rail to the
wharf where a large warehouse has been
built since your visit , and from there
placed on ships , an interesting spectacle.
I witnessed a few days ago the loading
of an immense iron ship with cotton
bales for Japan , confirming 'San Diego
as the port through which this vast trade
should flow. '
The people of the cotton-growing
states , of Southern California , but
especially of San Diego , are under great
obligations to the Santa Fe railroad
