OCR Interpretation

The evening times. (Grand Forks, N.D.) 1906-1914, April 14, 1906, Image 7

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Persistent link: https://chroniclingamerica.loc.gov/lccn/sn85042373/1906-04-14/ed-1/seq-7/

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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
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—
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
Mr. McCumber. And the value 'of one'
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
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.
:iv V"*
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
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
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
were actually glveli to the" Commission,
.will avail myself of .the privilege of
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
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
a Commission the power
to fix such standard or limitation.
Again be says, page 79:
"Thus It is seen the purpose and ef-
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
•. "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
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
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.
4jlW-4IO»4ia D«Hw» Av«. Either Phono OS
Gas One Dollar per Thousand Feet.
v-'i 'ijkl"
School and Office
Boll-Tep Desks, 01*
Be® Chairs, Pencils,
P«i aad XfcWeto.
it. sn nun
Siocl or Bwfc
faille, Yoacsa
l^kt OMbstpcrtr
flllj. Yos AI
•t dw sim
beake biock
,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
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
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
would vanish like frostwork in the
morning sun.
Mr. Clapp. .Will the Senator pardon
short, question?
Mr. ^(cCumber.
will be through In a shor
Certainly though
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
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 ^..
'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
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
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.
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
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
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
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
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-
tof with wonderful rapidity, and Mr
motors In small boat*.
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
sold as low as 2S cents or less. It Is
understood that this price was
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
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
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
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
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,
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
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]
We get only one chance a ye
raise a crop, therefore let
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.

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