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i|g§igf A ir H- ts, to he e iy he lie e sn e ld In at I SB Of Bi" at 9S »d -ly •A'' .V ~V $ /. wm hv? •'.*#* Wjf.rf ^Jh .,- I B^ttTCDA*, AMttL 14,1906. Interstate Commerce Commission, In determining the reaaon&bleneu of rate# upon & dm naa, Is Xo allow the rates oh another and different line to enter. Int6 the cilcttUtloA at all. Mr. McCumber. Then the Senator has aot understood the argument I have been trying to deduce, and that which la clearly deduclble, from the North At-* lantlc Differential, caae, where they claimed that it Is necessary and proper to take that natter into conalderatfon. Mr. Newlanda.. The Senator must recollect that 'that caae waa not con sidered under the Interstate-commerce act. It was considered as a matter of voluntary arbitration between the parties. Mr. McCumber. It was an arbitration, III In thltr thfev AM'tovIno* 4#iwn fAttr but In that they arelaylng down a few general proposittc— fnfixlngr&tes. tlons that would govern Mr. Newlanda. /That govern them In voluntary arbitration Mr. McCumber. Yes and In Involun tary arbitration. -, Mr. Newlanda And not in exercising authority under the interstate-com merce act? Jt.seems to me the Supreme Court has laid down the rule In Smith va Ames as to what shall be considered In determining the reasonableness of rates, and they simply consider the question of value and return upon value —the value of the individual road and the return upon the value of the indi-i vldual road—and no other considera tions than- those are alluded to in that opinioni Mr. McCumber. And the value 'of one' Is road, if fixed by what it can pay, three times, perhaps, as great as the value of another road that is beside It and competing with It That is not a basis for determining it, and I confess I do not know any reasonable basis for determining' It. It has to be de termlned according to the exigencies, the conditions of the traffic throughout 1 the country, the law of supply and con sumption. That Is what will necessar ily have to determine it. and it can not be based upon- the valuation of any other road. I wish to call attention to another matter, and then I will pass from this. 7,° :iv V"* In ge so lis to If- the Qpnunission say: "What does th¥fesult fairly show? Does this compdVtive traffic move through these ports freely, or do these' differentials give to Baltimore and Philadelphia a distihet and unfair ad vantage over New York and Boston?" They conclude that It does, and there tare modify the differential accordingly. What does the Commission mean by an "unfair advantage? It calls a natural advantage which would give greater business to Baltimore and Philadelphia' and the roads leading thereto unfair. They apply it to serving the entire public. And its idea of fairness' de mands a surrender of the benefits of a natural advantage. Again, on page 74, they sav .K la therefore possible that in the futur* it may become evident that Boston can not fairly compete for this trafflic upon the present basis but we not feel that the record before us would justify that inference today." If. however, in the future It shall ap pear to the Commission 'that Boston can not fairly compete with Philadel phia or Baltimore, then the Commission will see to It that-Baltimore and Phll Melphte rates are so increased that Boston can compete. Finally, on page 76, in treating of lake traffic, the CommlsBioniSay: '"These four cities are all seaports. This Is a fundamental advantage of lo cation which entitles each and everv one of them to participate in this ex port business aad the public requires that this right shall be recognized." "Now, that is a judicial or semi judicial utterance. "and the public In terest requires that this right shall be recogmlzed"-fthe right of this differ ential in their favor—so that they may secure their proper proportion of the buahMMk I un not denyteg Mat per haps the public interest in ttie ion" run will require that. Now, why does the Commission stop with these four seaports? Whv should not the same rule anniy to Portland, Me., or Charleston, 8. C., pr any other! of the smaller ports? On what theory does the Commission base Its. finding that each, of these cities Is entitled to participate in the export business? The only cities .that are entitled to partici pate, according to the economics, of my country, which Is the shipper, are those cities that can furnish us the cheapest transportation between the fteld of pro dilation and the field of consumption in •t Utllnllid Fwdi Wot Geo. W. Goiborn Supply Co. Talk with mm&w vv3" the old country, where it to going and If Boston can d* better than any other city. then, according to our views, Bos ton Is entitled to the whole of It. But according1ee the views of the eastern she people who are Interested In buila.ng up Boston and building up their indus tries, the essential Interest of the peo gjUrot that section Is exactly the con- Commissioner Clements .dissented qultie strongly against this proposition.• The view whlchl have taken In refer ence to. this decision, and the view which. It seems to me, must bo taken by everyone who is an advocate of hon est competition, seems for the most part to1 he exactly. In harmony with the vl?W' taken by Commissioner Clements, as shown in, his dissenting opinion ahdv that opinion demonstrates more clearly than I am able to do the dan- ers which would follow from carrying nto effect this decision if the power is" were actually glveli to the" Commission, I .will avail myself of .the privilege of JL FARM LOANS Emm algg^ quoting^ from his dfaaentlng opinion? After considering many of the conclu sions of the majority, he says, page 78: "If this were a proceeding /against a carrier reaching by its lines all of the Ports in question. It would be with in the jurisdiction of the Commission to deal with.the differences in rates as discriminations between localities by such carrier and, If found undue, to ^ondemn them. there is a manifest and radical difference be tween a matter of discriminatiKi like that by a carrier between places on its •line, and which is clearly covered by the provisions of the third section of the act to regulate commerce, and the fixing of differentials in rates to or through the various ports and over In dependent and competing railroads. In the latter case the law nas undertaken to leave the: free play of competition to adjust rates *BubJect only to the re quirements made, of each carrier that Its rates shall be reasonable'and just/ and shall not unduly discriminate be tween commodities or between persons and localities reached or served by It." In this he properly differentiates a discrimination by a railroad between localities along its line and a differen tial in rates to Various ports -over dif ferent competing lines. I think, how-' ever, that when this supervisory con trol is given to the extent of absolutely fixingthe rates by the Commission, ho will be compelled to follow the rule adopted by the other four members. Again he says, page 78: "The foregoing report proceeds upoiv the Idea that there is some legitimate^ and ascertainable standard of fairness by which there tan b«f fixed a limited and proper degree of competition and measure of distribution of the traffic between the ports and carrier other than that wrought by competition. The law undertakes to fix no such standard or limitation nor does It authorize the Commission to do so -even for the purpose of putting to rest these ques tions so long and so often Involved in the competing contests between car riers." And it might be added that the law neither undertakes to fix such standard or limitation, nor ought it ever to put in. the hands or a Commission the power to fix such standard or limitation. Again be says, page 79: "Thus It is seen the purpose and ef- fe£t,.0I.Jh0 conclusions is toi declare what differences in rates the railroads should make to the four parts for the purpose of distributing the business. Whether the carriers see fit to follow the suggestions of the Commission, which they are, of course, in no sense bound to do, or decline to acceen to the same, will. In my opinion, leave the Commission in an embarrassing at titude. •. "If they acquiesce we will have gone beyond our authority to Interfere in the course of trade, determining the direction and destination of commerce, a matter with which we are not charged. Tomorrow we may be called upoh ,to determine what share the Gulf ports may have and the Gulf roads carry, the next day to fix the propor on to which the Pacific coast is en titled. And, again, he very forcibly says on page 8«: 'In declaring as between, competing lines and competing ports what differ entials shall govern, assuming that they will govern, we hamper compe titlon, and by this regulation of dis tribution effect in realty a division of territory .a division of IMffic. and a division of earnings, whlckfc substance and effect tend to defea#|£t only the on Good Wmrmt at Rtte of Interest and With On or Before Privileges CAM OK WUTB DAVID H. BEECHER, I Oaiaa lUHsaal Bask MMUaf, 6ra«d Ftrfcs, H, D. Ladles' and Gentlemen's garments cleaned and pressed to look like new with the latest Improved methods. Gentlemen's Suits French Dry Gleaned and Pressed $1.50 How about your'summer suit? Our Dry and Steam Cleaning Department is the moBt modern west of the cities. Don't forget our Laundry. If you live out of town write. THE GRAND FORKS STEAM LAUNDRY CO. 4jlW-4IO»4ia D«Hw» Av«. Either Phono OS SECTlONAt BOOKCASES OWN YOUR OWN FRANCHISE Gas One Dollar per Thousand Feet. v-'i 'ijkl" m.<p></p>Twamley School and Office FURNITURE SUPPLIES OF ALL KINDS .5 Boll-Tep Desks, 01* Be® Chairs, Pencils, P«i aad XfcWeto. jV. it. sn nun fQIKS. II* D. 4 RO DfTIMST Siocl or Bwfc flassKMsiorslwM pric*. MmUs. to faille, Yoacsa l^kt OMbstpcrtr flllj. Yos AI YOCI0AS UM6K •t dw sim Hm. beake biock ,: i' fl ,utf1f r, c^'V 'I purpose of the anti-trist act against the restraint of trade, but the pooling provision of th. interstate-commerce act, with the enforcement of which the Commission Is charged." And," again, on pag. SI: "May competing carriers lawfully ef fect, through the airency of the Com-, mlssloat restraint'of competition and trade by a division of traffic between themselves and the ports, when to do tne same thing through an agency of their own would be umawfi^y I think In this last quotation he clinches the argument that forcing'a division of traffic by the rate-making power de stroys the very competition that wo are seeking to maintain. Mr. President, I believe It is to the _igh_ In their favor, not that thev may raise the rates unreasonably high, but that they may place the rates unreasonably low. I will give a case of this kind. Suppose citizens- of Oshkosh, Wis., BO to the Milwaukee or whatever rdfcd serves them and say, "We have the timber here we should like to build up a great furniture manufacturing indus try but Grand Rapids, in Mfchigan, has corralled all the Chicago business they have beeiT riinning for fifty years they /an conduct their business so econo mically that for several years at least we could not compete with them and our only method of competition is for you to give us preferential special rates to she Chicago market." The railway says, "We will haul your products for three yearB for just exactly what It will cost, and after that we will raise the rate'to such an extent aB we can afford to carry them. This will then build up your Industry." Now. the Commission appears and says, under the law which you would pass, "You can not give this rate to that particular city unless you give It to every other city on the line, and to every other person wno is attempting to build up any kind of an industry alongiany partlclular line." Thus you are deprived of building up a business there that wbuld benellt the railways and. would benefit also the country. lou deprive them of competition. I recall this character of a condition: Here is a section of bountry whore they raise nothing but potatoes, or another section Where they raise nothing but flax. They have raised an excellent crop of potatoes there, but at the same time they have raised an excellent crop over the country, and they And, when they want to ship those potatoes to the market, the freight rates will equal what they can get for them in the market of consumption. The railway says, "We will carry theBe goods this year at even less than cost. We wijl carry them for the otpress purpose of keeping that business there. To do that we will have to lower our rates here, and we will have to raise them, it may be, in the wheat-raising section, because we cannot afford to cut down the general result of our income to meet running"expenses." Under this law they could rut do it. They could not change the rate, except upon thirty days'••notice, and in thirty days the potatoes would be rotten. I believe that the best Interest, espec ially of any new country, demands that a railway may discriminate in favor of any locality by giving especially low rates to some particular industry that while they shall be always prohibited from making any rate unreasonably high, thoy shall not be prohibited from making one unreasonably low for a legitimate purpose. Mr. President, in the Old World the railway management simply supplies the demand for carriage. They do not attempt to make markets. They supply the demand for the markets. The exact reverse is the rule in this country. Our railways, especially in a new country, must give special attention to creat ing markets. Their management must study the demand they must carefully compare the Held of production with the Held of consumption, not only in this country, but in every other coun try. They must build up and stimulate trade. In this country they make the demand they work for it they develop industries,' and they And markets. As long as they do this, then I say that they should have the privilege of giv ing such special and low rates under certain conditions to certain places in the country as would be beneficial to •the part of the country that is given hose particular low rates. Now, Mr. President, answering the Senator from South Carolina about the complaints in the southwestern part of the country. The southwestern cattle raisers complain somewhat, not .that their rates are too high—they are not saying that—but they say that compar ed with the'rates North Dakota and Montana, yet they are not treated fairly: that their rates are much higher than In' those, states. So the lumber men from the south say that ihe rates from th* southern lumber districts as compared with the rates from the Pa ciflc coast districts are excessively high, thus favoring the Pacific coast. That is true for three reasons. First, those rates were made excessively low for the very purpose of developing that western lumber industry. Again, the railroad companies could afford'to do It. because the industry is of such im portance that they can haul loaded trains both ways. Again, they do it be cause the settlement along the northern roads is much more dense than it is along the southwestern roads, and therefore they can caxry cheaper. Now, If the railways .can give us that benellt we are entitled to it. Mr. Tillman. Mr. President The Vice "President. Does the Sena tor from North Dakota yield to the Senator from South Carolina? Mr. McCumber. With pleasure. Mr. Tillman. Do I understand the Senator to contend that the population along the road from Dakota to the Pa cific coast, where these lumber districts are, is more dense than it is from any point in the South northward? Mr. McCumber. I said the Southwest. Mr. 1 iliman. Going over to Texas ad far as our lumber district extends? Mr. McCumber. 1 will take the sec tion on the Rio Grande, the roads that run to Denver and to the coast. Thoy pass through more country that is unsettled .a certain portion of the dis •tance than the roads running through the northern Section. Minnesota and the Dakotas are very well settled. There are great settlements in Wash ington and along the Northern Pacific. Along the Great Northern road we have a considerable population in everv one of the states, while in portions of Nev vada, Arizona, and the other sections there is very much less population, and of coure less business. Mr, Tillman. I think tho Senator, wyl find on examination that he is away from the facts in regard to the density of population Jn the country between the Pacific and the Dakota# which is near the edge of the arid belt. I know It runs between the ninety ninth and the hundredth parallel but there IS no part of the Southwest In lumber. There may be no lumber away out In the Rio Grande country I do not think there Is it is too dry but from any part of Texas where there -(are trees I am sure northward through the Indian Territory and Oklahoma "the country Is four times—ten times—as densely populated as any part, of the country west referred to, uiftil you reach the Pacific' coast. Mr. McCumber. (That may be true as to certain portions of It. But now let me take up this same matter of the dis crimination in favor of localities. Iff the early part of the history of North Dakota, or of the Dakotas, all of our lumber came from the Dine woods of Minnesota and Wisconsin and Michi gan. There 'was very little competi tion. But away to the weBt of us lay the immense primeval forests of fir and pine of Oregon and Washington. We needed their lamber and they needed our market. They wero too remote from the field of consumption to com pete with the lumbermen of Minnesota and Wisconsin on anything like equal arrylng charges. The only way to meet this condition was by dlacrltnina- only way to .— jjr discrimina tion, and by a.great discrimination In favor of the western product and even over the same line or road. So the managers of our northern rail ways said to. the- -lumbermen of the west coast, "For what carrying charges can you compete on the plains of Da kota with your lumber as against Min nesota and Wisconsin?" Thev thought they cqjild compete on a SB-cent rate per. hundred. The railroads said, "We do not think' you can compete on a 65 cents rate. If you will go Into the business, however, with sufficient cap -ital, sb that you will give us loaded trains each way, we will give you a, 50 centN-ate, or a 40-cent rate, if that is necessary." And a 40-cent rate, I be lieve ,was given. Mr. President,: that was a simple ,-proposition, having for Its object the development of the lumber Industry of the i'Pacific coast and the development of the farming Industry In my own state. Under- that agreement lumMr waa carried from the Pacific coast Into the Red River Valley'at a. cost that barely more than paid the cost of runnlnp trains^ one way. Bad Minnesota an been today- In their primeval beauty and ^grandeur. It was by reason of this discrimination that we have been en abled to build up the great lumber In dustry on the one hand, and that we been, enabled to build up the agricul tural section upon the other hand. If we were to take away that discrimina tion today, the discrimination that the west enjoys in the matter of these freights,, .then all of our prosperity W k- ?y ,v."* THE EVENING TIME8, GRAND FORKS, N. D. would vanish like frostwork in the morning sun. Mr. Clapp. .Will the Senator pardon short, question? set through Mr. ^(cCumber. will be through In a shor Certainly though time. Mr. Clapp, I do not like to interrupt a Senator speaking, but I should like, if the Senator can, to have pointed out a single word In the House bill that woula enable the Commission to Inter fere with that condition beyond what they might have Interfered with it un der the original bill as it stands today as a law. Mr. McCumber. One of two things is certain under this bill. Either the Com mission will have the power to detert mine what are just and reasonable rates or It will not have that power. If it has that power, it has got to base its decision upon something. If it bases its decision upon the North At lantic differential theory that it has promulgated, it will be bound to fol low the theory I have suggested. If it bases ft upon any other theory, then you would have as many different kinds of seasonable rates as there are rail ways in the United States. I, know of no system, I will say to the Senator from Minnesota, whereby the Commission can determine what is a reasonable rate without absolutely destroying all the relations of one road to another and bringing about a chaotic condition in transportation, unless it t,akes into consideration the question what would bo reasonable on other roads and what other roads can haul the freight for. Mr. Clapp. If the Senator will pardon me again, he must conccde that before the Commission under the new law can ascertain sf reasonable rate the Com mission must first be justified in con demning the existing rate. The Senator is undoubtedly familiar with the de cisions of the Supreme Court in regard to the long and short haul clause of the existing law. I undertake to say that there is not a line, or word, or syllable in this bill which enlarges the power of the Commission as to the long and short, haul clause as found in the ex isting interstate-commerce law. If the Commission would not find those rates unreasonable under the existing law, clearly they could not in the place of those rates substitute an alleged rea sonable rate under the proposed law. Mri McCumber. Mr. President, let me come down still closer to the point. I will not give exact iigurcs, hut I will give enough to show the result. I will give a good illustration. We will say that a carload of wlieat carried froiii my city to tho Senator's City of Min neapolis. where we market it. is car ried 1y the roads at $50 per ear. Now. that same car is loaded at the same place and carried hack to the same city where it started for 100 per car. This "Is done under system which has not been adopted bv tho rallwavw that it is for the,best interest of our country that we get these benefits for .the things we ship out rather than the things wo ship in that while we ship out 3,000 bushels of wheat, for Instance, if it is 'but $50 a car,*-we will save 5 cents a bushel more than wo would upon an equalization of those rates. To be sure, when we ship something in it will cost more. It may cost us 5 cents more for a pitchfork, but while selling 3,000 bushels of wheat we do nol buy back 3,000 pitchforks, and hence we are really benefited by this discrimination. Now. suppose the Interstate Com merce ^Commission is called upon to de cide that the rate from Minneapolis to my town at $100 a car is excessively high, what evidence will thev receive? One of the things that would neces sarily be submitted is that the railway company liauled the same car the other direction for only $50. and If thev can haul It one direction for $50 they can haul it the other direction for $50. They may ciut down on The $100 rate on the ground that it is excessive, the company will make up on the $50 rate, which is the real rate that benefits us, "and the only one that amounts to any thing to us, and will make it cost all the more to move our products east ward. Mr. Clapp. I will ask the Senator If that could not lie done under the ex isting law, provided the Commission could find successfully that the $100 rate.is an unreasonable rate? Is there anything in the existing law to pre vent the Commission from attacking that rate? Mr. McCumber. The Commission will .attack the $100 rate. I am assuming now that they hold that It is unrea sonable. and that they hold that instead of the $100 rate they could well afford to carry freight for $75 westward. Now, what is the railway going to do with the other $25? They will probablv Mr. Clapp. That is a violation of the existing law. Mr. McCumber. Just a moment, Mr. President. They probably will attach it to the eastward haul, because the eastward haul already may be low, and the railway can not afford to carry both ways at a less amount. In other words, they must have $150 for hauling *that car both wavs. I want to let them have the opportunity to differen tiate In favor of the eastward haul, and I would not willingly put it in the hands of the Commission to «ay that they shall not have that power. Now. Mr. President, a wore before closing. A work half done had better be left undone. Unless this Commis sion can properly consider everyone of the freights that it will be called upon to consider, it seems to mo that wo ought not to force it upon them, or even, expect them to do it or allow them to do it. Mr. president. I made no claim to exnert knowledge on the subject of railroad rate making. There are. how ever, a few bas'c principles relative to the subject which, if not known bv every person, are at least understood bv those who have triven the suhie-t even casual consideration, principles which ought not to be lost sight of. We know, in a eeneral way. how these rates are arrived at. The official charged with the rate-making power on any great lino of railwav receives dailv reports from every station along the line as to conditions of crops, busi ness, the amount of produce that will be required to be moved ri-om each station, etc. Not only this, bat he re ceives information directly or inriir-e'lv from points along every other railway svstein. Thn«e lines he must utilize and those which arc in competition with his line. He must study the mar ket of the entire nation and the entire world. He must constantly have before him the schedules of charges for all ocean traffic, and the amount of that traffic, because he must fix his rates in accordance with it. He must under stand exactly what the variation of a half cent per hundred pounds on an'.' commodity between any points will huve upon the rates and chafes a*id business of other lines, as well as his own, so that, in fact, every agent, e\'ery airent. every employee in every sta tion ^tlong everv line of railway does h'" oa-t in imparting Information which shall be the basic of fixintr rate" from day to day. I therefore do not exaggerate when I say that it takes an army of 50.000 men to make railroad' "ates for the railroads of the United states. Now, we propose to place this oTtraordinarv power In the hands of five men, who, though they be giants in intellect, could not consider the one hundredth part of 1 per cent of the things which properly should be con sidered Jn the matter of rate making. I judge from the remarks of the Sen ator from Massachusetts (Mr. Lodge), •hat if he pays the Commissioners twice as much he will make them twice as intellectual. I will hardlv agree with that proposition. Mr. President. I think that though their Intellect be gigantic and a thousandfold multiplied they could not consider properly one-quarter of the rates that would naturally come before them, because I believe that as soon as that rate-makiner power is given it will bo followed by apolica Itons from nearly every great commer cial city to seeure'lower rates or pref erential rates to Its own particular lo cality for the very puroose of securing Its own prosperity and if they are not successful in that way thev will get In as defendants for the purpose of pre venting some other city from getting the prefcrentlais, and the Commission will be naturally overwhelmed with a great amount of work. *1 am informed that there are more than 100,000 schedules of rates filed every year with this Commission. That means 320 for every working day in a year. It means 40 for every working hour. Now, how can we expect a Com mission to take Into consideration and justly consider every one of these propositions, which must be determined not alone on value, but on a thousand other conditions, such as tho inequali ties of bonded indebtedness, inequali ties of cost of construction, inequalities of a thousand' other kinds, which must necessarily be taken Into consideration In the matter of fixing and determining even what shall be considered as a fair and reasonable rate. Mr. President, the Commission have declared a rule that they will follow, and It seems to me that thev will be compelled to follow the rules which they have laid down in this North At lantic differential case. Mr. President, a word before closing. All who have written about the condi tions In the old country agree that granting the rate-making power to any political commission has worked dis astrously to every one of those Inland cities which did not have the benefit of water transportation. We have no water transportation to amount to any thing in this country, and I conceive it would be much worse In this country than in the old. 1 take just a little excerpt from the testimony of Mr. Meyer, given before tho Interstate Jtammerca Commission. He says ^.. KiT* *vt 'The experience of all such countries has been to bring Into politics the question of reasonable rates and the great question of conflict of sectional interests, which is an Incident neces sary to the development of a country and the ultimate result has been that railway rates have become Inelastic and finally have ceased to decline they have become stationary and have re mained so. "The result of that has been to par alyze commerce to very large extent, the railways as effective agents for the development of commerce, and the resources of a country and unless there has been the possibility of escape from that paralysis through a recourse to a means of transportation that was aban doned In this country in tho seventies, namely, by river and canal, the effect has been absolutely disastrous." And, again, he says, speaking of what the result of the German ownership or fixing of rates has been: "Berlin has lost all its import trade in patroleum, except trade dependant upon petroleum consumed in Bremen and the immediate neighborhood and tho petroleum import trado has gone entirely to Hamburg for eastern Ger many. which distributes b" means of the Kibe and then the canal from Berlin and then the Oder. "On tlic other hand, for western Ger many the petroleum trade has gone entirely to Rotterdam and Mannheim, which is the head of navigation of large vessels, on the Rhine, at tho point where the Main empties into the Rhine." And so the hard and fast rules en forced upon railway carriage in the German Empire have had tho effect of totally destroying business in some centers and moving it to others, have built up some sections—namely, those with extra facilities for water trans portation—and have destroyed those, centers which depend wholly upon rail way transportation. The like is also true in Australia. The interior is as much a desert today as it was a hun dred years ago. On the other hand, the whole interior section of our country has been built up, because of the con stant endeavor of each line of railway to make tho country contiguous to its line prosperous, even at the expense of sinking millions upon millions of dol lars in making rates so low that other sertions of mo country could not for a time compete. Mr. President, there are about one and one-fourth million voters employed by the railroads of the United States. At present each one of this great army must deal separately with the organi zation that controls the particular rail road in which he is employed. Some of those railroads, which are operating upon their own systems, upon their own theories, contemplate improve ments in one direction, some of them In another direction and all these mat ters of expenses and improvements are considered in determining what they can pay their employees but, now. when you substitute and project this nolitical body into the management of the rail ways of the country, even to a slight degree, docs anyone for a single mom-, ent believe that this immense political Influence will not make itself felt, lirst. In demands before this commission for higher wages second, for shorter hours, and third, for smaller train loads, etc.? If they appeal there In vain, does anybody for a single moment believe that they will not make stu pendous power felt in the only body that is back of this great political power—the Congress of the United Mates? For my part, 1 sav, Mr. Presi dent. Heaven pity the nation when it is wholly at the mercy of all the great trusts and of all these political combi nations in the United States. I am informed that when Germany took the railways from private to pub lic ownership, she foresaw all of these great dangers, and she disfranchised everyone of the employees. That would be contrary to our idea of government, and it could never be done in this country but it shows that we shall more and more and to a greater extent be subjected to these great political or ganizations and influences if we once bring the government down from its lofty function of governing to that of taking part in the business industries of the country. The bill contains amendments to the old law that will aBsist in its better enforcement, and I will cheerfully sup port those provisions. If this other provision, which I believe will be det rimental to all but a few great seaports and possibly some other lines of rail way, is adopted, then, in my judgment, both for constitutional reasons and for fair play. I belive the courts should be open, with provisions for speedv deter mination to all persons interested aNke. Mr. President, since the day of Mag na Charta. which insured for all time the risht of every man to a fair trial, no principle has been more sacTedly cherished or protected by all English speaking races. While litigation in late years may be slow and often ham pered with trival technicalities, still, when we conpare it with trials by de partments or boards or courts-martial, its superiority stands out grandly above all other methods of determining the personal or constitutional rights of the citizen. And 1, for one, do not believe that the time has come or any condition has arisen which demand's the substitution of a political board for a judicial tribunal. Mr. President, in closing I only want to say one other thing. It has been reiterated here again and again with impassioned declaration that, unless we take this first step toward social ism. tho placing of the rate-making power in the hands of a political com mission, the people will rise in their majesty and compel us to take another one, and that is government ownership: in other words, that if we do not do one great wrong, the people will rise and compel us to do a still greater wrong. But the people, as a whole, do not want and do not ask their representa tives to do anythinir but rl"h'. When ever the people have understood a sub ject they have never yet. by their vote, allowed any great wrong to be perpe trated by us. much loss perpetrate it themselves. The people not only want their representatives to do the right tiling, but they want them to do the right thing in the right way. Mr. President, I need give but a sin gle illustration of the ability of the people themselves to change their own minds when they have duly considered a matter. I call attention to the great campaign of lS9t) between the gold standard and free silver. During that campaign had there been a vote had by the people of the United States dur ing tho months of July, August, Sep tember, or even in the early part of October, the advocates of the gold standard would have gone to destruc tion before an avalanche of American votes. Our school houses throughout the entire country, devoted to the edu cation of youth during the day, were given up in the evenings for the edu cation of bearded men. We were told at that time that our silver money had been surreptitiously demonetized some vears before, that there would be neces sarily a great contraction of the ctir rencv to the benefit of the wealthy people of the country and to the detri ment of the poor. They fought it out in argument and on that dav of No vember when the question was deter mined the people of the United States completely changed their first conclu sion and they did the best thine, Mr. President, that was ever done In this country, for if we had adhered to that nolicy. notwithstanding all of the sav ings and all the great accumulation of gold since that tjme and the wealth which the mines have developed, our money would not have been worth more than -10 cents on the dollar in its pur chasing value as compared with what it is today. So, Mr. President, I havo confidence that the people are not themselves in sisting that we shall surrender our own Judgment upon any particular phase of this case. I am sincere in my belief that that portion of the bill which changes the rate-makine power from the railways to a political bodv will be to the detriment of the people, and I 1° not feel that I am-acting against the Interest of those people. I would be perfectly willing to submit that wherever it may be justly and fairly heard. I am afraid that we are substituting the press for the public In this case. I am not so certain, tbe matter nev«r haying gone to the neople, that they will say that out of all the remedies there Is one, and onlv one, that the Congress can conscientiously and hon estlv consider. What the people want are results. Thev want a law that will go directly to the evil, and then they want that law enforced. They'do not want the enactment of a new law which will not touch the wrong. They want a law that all rates shall be Just and reason able. They want a law that no prefer ences will be Riven tt the ereat shipper over the small shipper. Thev want a law that the owners of special cars snail not have such privileges as will enable them to drive out of business concerns so small that they can not afford to manufacture their own special cars. They want a law that no rebates of any character shall be allowed any persons whereby he gains an advantage over others. In a nutshell thev want simple justice and fair play. And I be lieve that they want another thing which the press have fore-ntten to agi tate. The neople in business, represent ing all characters of enterprise, are compelled to compete in the open mar kets of the world and asrainst Immense business Interests. They therefore have a right to demand, and do demand, that the railways which carry their products shall also be compelled to compete for them and they want no law which will allow a commission, 'trough the rate-making power, to de stroy that competition. I nave very little fear of th. result this will have upon the railways them selves. do not believe they will be greatly injured. I believe that rule will be applied which was applied in the North Atlantic differential case. I be lieve that the Commission will see to it that they In their determination of reasonable rates will not destroy any railway if they can help It But I am interested in what is going to be the final result upon the great Interior of this country, the exact center of which I myself represent While I am here, Mr. President, I propose to vote ac cording to my own judgment. I do not think the editors who have written up this question in lurid lines have given It the study that I have I do not think they have given it the consideration that any one of.the Senators here pres ent has given it. I simply ask that in its consideration, instead of always putting our ear to the ground to get the public sentiment for the sole pur pose of ascertaining which way the wind is blowing that it may blow us safely into a political port, that we shall put our ear to the ground and keep ft there to hear the complaints that are being made by the people then study out those complaints, and, under our obligations as Senators, be fore God do our duty according to tho best of our information and our judg ment in remedying the complaints. Mr. President, I want to say finallv that I will not be a party in dCCetVinK the people into a belief that in their battle against these great combinations, the sourcti tf all their real injuries. .'J!'.0 going to get any remedy In this bill that will amount to anything ill wluttover way we may pass it. THAT ALCOHOL MEASURE Text of tin ltill Introdoved by Payne of Sew York Which Will Probably Becoinc a Law—l'roviden for Free Alcohol When Denaturfzed, Th bill which was introduced in the lower house of congreRS by Represen tative Payne on March 28, and com mitted to the committee of the whole on April 4, and which will probably become a law, provides for the dena turing of alcohol, is known ais house bill 17403, and reads as follows That from and after three months from the passage of thia act domestic alcohol of such degree of proof as may be prescribed by tbe commissioner of internal revenue, and approved by the secretary of the treasury, may bo with drawn from bond without tho payment of Internal-revenue tax, for use in the arts and industries, and for fuel, light tnd power, provided said alcohol shall have been mixed in the presence and under the direction of an authorized government officer, before withdrayal from the bonded warehouse, with de naturing material suitable to the use for which the alcohol is withdrawn, but which destroys its character as a bev erage and renders it unfit for liquid medicinal purposes. The character and quantity of the said denaturing material and the con ditions upon which said alcohol may be withdrawn free to tax shall bo pre scribed by the commissioner of Internal revenue, who shall, with tho approval of the secretary of the treasury, make all necessary regulations for carrying into effect the provisions of this act Sec. 2. That any person who uses alcohol withdrawn from bond under the provisions of section one of this act for manufacturing any beverage or liquid medicinal preparation made in whole or In part from such alcohol, or knowingly violates any of the provisions of this act, or who shall recover or attempt to recover by the redistillation or by any other process or means, any alcohol rendered unfit for beverage or liquid medicinal purposes under the provisions of this act, or who knowingly uses, sells, or conceals alcohol so recovered or redistilled, shall on conviction of each offense be fined not more than five thousand dollars, or be Imprisoned not more than five years, or both: Pro vided, That manufacturers employing processes in which alcohol used free of tax under the provisions of this act, is expressed or evaporated from the arti cles manufactured, shall be permitted to recover such alcohol and 'to have such alcohol restored to a condition suitable solely for reuse in manufac turing processes under such regulations as the commissioner of internal reve nue. with the approval of the secretary of the treasury, shall prescribe. Sec. 3. That for the employment of such additional force of chemists, in ternal-revenue agents inspectors, dep uty collectors, clerks, laborers, and other assistants of the commissioner of internal revenue, with the approval of lie secretary of the treasury, may deem proper and necessary to the prompt and efficient operation and en forcement of this law, and for the pur chase of locks, seals, weighing beams, gaugnig instruments, and for all neces sary expenses incident to the proper execution of this law, the sum of two hundred and fifty thousand dollars, or so much thereof as may be required, is hereby appropriated out of any money in the treasury not otherwise appro priated. For a period of two years from and after the passage of this act the force authorized by this section of this act shall be apoplnted by the commissioner of internal revenue, with the approval of the secretary of the treasury, and without compliance with the conditions prescribed by the act entitled "An Act to regulate and improve the civil ser vice." approved January 16, 1893, and amendments thereof, and with such compensation as the commissioner of internal revenue may fix, with the ap proval of the secretary of the treasurv. Accompanying the bill is a well prepared report showing some of the advantages of the legislation propos ed. Among other things, it says: Methyl alcohol is now employed in this country in the manufacture of the following list of articles: Aniline colors and dyes, hats (stiff, silk and. straw), electrical apparatus, transparent soap, ^furniture, picture mouldings, burial caskets, cabinet work, passenger cars, pianos, organs, whips, toys, rattan goods, lead pencils, brushes, wagons, boots and shoes, smokeless powder, fulminate of mer cury, brass beds, gas and electric-light fixtures, various kinds of metal hard ware. incandescent mantles, photo graphic materials, celluloid and other like compounds, sulphuric ether, or ganic chemicals. It is believed that it would be dis placed by the use of taxfree denatured ethj'l alcohol, except when used In man ufactures where it Is essential, and where ethyl alcohol can be used. The amount of methyl alcohol which can not for this reason be displaced is about 1.000,000 gallons. The bulk of free denatured alcohol in Germany is used for the purpose of light, fuel, and heat. A lamp is now made with a Welsbach mantle which Eigh-grade roduces a very strong, steady, and light by the use of alcohol. Experiments havo been made testing this lamp with the most improved pat tern kerosene lamps with round wicks and of equal candlepower it was found that a gallon of alcohol would keep the alcohol lamp burning twice as many hours as would a- gallon of kero sene burning in the most approved pattern of kerosene lamp which is in general use. In other words, one gal lon of alcohol is equal to two gallons of kerosene for lighting purposes. Hence, it follows if the price of alcohol methylated Is less than double the price of kerbsene its use. especially on the farms and in the villages of the coun try, would become enormous. During the past few months expert ments havo been made in adapting gas* oline power engines to the use of al cohol.. This has been successfully done In Germany for several years, though there they generally mix 25 per cent of gasoline with the alcohol to obtain a more ready ignition of the fluid. Which is forced Into the cylinder of the engine in the form of vapor. Experi ments in this country have developed the fact that alcohol can be used Just as readily as this, mixture with gasoline or gasoline itself, and the opera s'01?the„.the of engine with its use is per fect. The use of small motor engines running with gasoline has become very terse. In the estimate before the com mittee, it would appear that 300,000 of these engines wr now in us and that the annual output is more than a hun drd thousand. These engines are especially adapted J2Jiar2i»?se f°t? PunjPlnsr water, cutting feed, Ailing silos, threshing grain, ana the multiplied uses to which a station- from "fife. gasoline Are cannot be quenched with water. On the other hand, water seems to scatter the gasoline and Increases the danger. But an alrohol fire Is easily put out by the use of water. Large numbers of Iff®0 "oto™ «o also used in automo biles, the number of which ii Increas- rt && S PAcnaros* tof with wonderful rapidity, and Mr motors In small boat*. 1 "SIV limited."" Thellemana m»ema- to most unlimited. tepsrimenU abow that a gallon of alcobol will produce at I least 10 per cent more power than a gallon of gasoline. The alcohol (or this purpose produces the best results wben there Is at least per cent of water in the mixture, or, in other words, when the alcohol is per cent pare. I This is known as 180 degrees alcoboL There is a considerable use of alco-1 hoi in Germany for heat .substituting I It In stoves for gaBollne. If tbe aiconol I can be produced at an economical cost, I there is no question but, like the use I of gas stoves In cities, the use of al-1 cohol stoves in the country would grow I to large proportions. I The principal question therefore Isl the question of the cost of production! of alcohol as compared with the cost I of production of kerosene and gaso-l line Upon this subject there waa al wide range of evidence before the com-f mittee. it appeared that the market! price of ethyl alcohol, eliminating the! tax, is now about 38 cents a gallon:! that during the past year it has been sold as low as 2S cents or less. It Is understood that this price was by the barrel. Mr..W. E. Lummus, who appeared in opposition to the legislation, furnlshedi an estimate of the cost of 95 per cent! alcohol, which is 6 per cent above thd purity required for mortor purposes! showing 27.75 cents per gallon. In thisr however, he figures the cost of corn at 46.6 cents per bushel, and the manul facturer's expenses at 12.85 cents pea gallon. As corn has averaged for the last ten years 42.36 cents per busbelf and the cost of manufacturing for ted years in the distillery at Peoria wai 3.4 ccnts per gallon, it is quite evldenl that these figures are greatly exagl gerated. The best test before the commltte, would seem to be that obtained fron the books of a large distillery Peoria, 111. At this distillery the re. ord for ten years showed an averaa cost of 4:1.36 rents per bushel for to corn used. The average production alcohol was 4.76 proof gallons from bushel of corn. The cost average 10.7S cents per proof gallon of alcoho The corn used in making one gallon proof alcoiiol was 0.21 of a bushel, cost ing 8.89 cents, deducting this cost froi 10.78 cents, the total cost of the ale liol, wc have 1.89 cents as the cost making one gallon of proof alcohi over and above the cost of the grail For SO per cent alcohol the cost making would bo 3.4 cents per wla gallon. It should bo noted here that the in provements in distilling have increase the yield to 5 gallons of proof alcohl per bushel of corn. With corn at thT price, the cost of production for tq entire period was 10.58 cgntB per pro gallon, or 19.4 cents per wine gaU testing 90 per cent, but this was on '•'6 proof gallons for bushel of corn. With an average oil gallons per bushel, which is at presef realized, the cost wAuld be about IS cents per wine gallon. The cost manufacture of crude wood alcohol, cording to tho census reports, is per gallon. Using 10 per eel with IS.4 cent alcohol, the cost of dl natured alcohol would be 20.5 cents gallon. 1 his is less than the cost gasoline at points in the Northwel represented before tho committee Instance, by Mr. Marshall of North *\°ta. and would bring alcohol even this price of corn in equal competltld with gasoline. Alcohol would be able to suppla gasoline and kerosene in the produ 5'°" cf power and light and great go would result especially to the farme St/ l'i. .u, States. It seemed real able that this result would follow. with the resulting good to tho gre. mass of our people, would far outwell the temporary loss which would con to the wood-alcohol industry. This lief is shared by the great mass of fellow-citizens from all parts of United States, and the demand for unWeraalftUr°d a,C°ho1 18 EW wel,-nil FLAX IS BEST. Latest Variety Yields Fear** Than Old Kinds. The new variety of flax originad by th'e Minnesota experiment officials in co-operation with United States department of ture, and distributed in 1905 to farmers of Minnesota, has proven very valuable variety ior this sti A pamphlet recently issued by the periment station, giving the re of the 1905 tests, shows this new to have yielded 3.1 bushels or 26 cent, more than the common varied grown by the farmers. These flg_ are based on the results of tests ported by forty-eight farmers in ferent sections of the state, who this flax and their common varied under similar conditions. Every bushel of the flax grown, 1905 should be used for seed in lj Every farmer who is raising should get some seed of this var and increase his yield, for an incrd of 26 per cent, is certainly wd while. It means a much larger] crease in profits, for the cost of gr ing is exactly the same. The reports also show the flax to be from five to ten days ea than common varieties, which giv| considerable advantage in escaa damage from various sources, anq getting ahead of the weeds. For a portion of the land sov grain, flax is probably as profitabl crop as can be grown, lliat iq yields as much in money value 1 acre as does any of the grain cif Twine is now being made of straw which promises to make a ket for considerable of this other waste product. Flax should not be grown on| same piece of ground oftener once in seven to ten years. If I precaution is taken there will be| little danger from flax wilt. is an especially desirable cropl grow on late spring breaking. will always make it a-favorite where it is desired to leave the land for fall and spring pasture! break it up in June for a cropl same year. Better Cultivation. The season for field work is us. Let the motto of every fa| for the coming season be: farm work." There is no part oi farm work that means more better tillage of the soil before crop is planted. There is onlyl time that the soil that underlil hill of potatoes or corn can bef tivated, and that is before the is planted. The same rule applies to the grain. A young grain plant on its parent kernel until it hold of the soil. When it first gins to take its food from thel it has a very slender and weak! growth indeed. If its feeding is a bed of lumps it must grow slowly. A young plant is mucli a young animal. Unless it hd favorable opportunity to feed grow while young it will reced setback from which it will never] recover. We get only one chance a ye raise a crop, therefore let UB do his part to secure a good on| you are not thoroughly convino the benefits derived from cultif take ont acre and go over it or four additional times with plement that will stir- the soiT| and note results the' coming and then you will agree with Roman saying, "Tillage is Some reformer,will now cla McCall died to get revenge insurance companies by making I pay his policies. One of the grounds for dlv Detroit woman was that In tt| two years she had only recelv cents for spending money, an^ was for witch hasel oU.