•'.oF 



HARDWOOD RECORD 



state Commerce Law that the Interstate Com- 

 merce Commission shall be given the power, 

 where a siven rate has been challenged, and 

 after full hearing found to have been unlawful, 

 to pn^sci-ihe what shall be a lawful and proper 



JAS. BUCKLEY, BROOKVILLE, IND. 



rate to take its place : the ruling of the com- 

 mission to take effect immediately." 



The four hundred persons under the leader- 

 ship of D. M. Parry and N. W. McLcod having 

 refused to suiiscribe to the foregoing declaration 

 of principles were not admitted to Steinway 

 Hall and went in a body to Music Hall, where 

 all necessary arrangements had been made for 

 holding a convention, and proceeded to organize 

 what is now known as the "Federal Rate Regu- 

 lation Association," but what was popularly 

 known at the time as the "Rump" Convention. 



After carefully considering the declaration 

 of principles and finding that they were in en- 

 tire harmony with former resolutions unani- 

 mously passed by the Indiana Hardwood Lum- 

 bermen's Association I subscribed to same and 

 remained with the regular convention held at 

 Steinway Uall. There were 353 delegates pres- 

 ent, representing 31 national organizations and 

 202 state and local organizations. 



J. V. Stimson, a member of our association, 

 was also present as a delegate from his con- 

 gressional district. 



It is impossible in the brief time that I have 

 to give in detail the proceedings of the conven- 

 tion. 



After two days of careful consideration of 

 the question of federal rate regulation the con- 

 vention uanlmously adopted the following reso- 

 lutions : 



"Resolved, first : We. the delegates assem- 

 bled In Chicago, under a call Issued to those 

 rommerclal. producing and manufacturing or- 

 ganizations that sustain the I'resldent of the 

 United States in his publicly expressed views 

 as to Interstate Commerce Law Amendment, 

 congratulate the country that Theodore Roose- 

 velt, as President of the United Slates, has 

 shown his wisdom and patriotism in recommend- 

 ing to congress constitutional, effective and Just 

 measures for the regulation of Interstate com- 

 merce that shall provide for the people a na- 

 tional tribunal with power to substitute a rea- 

 sonable and just rate or classification for one 

 proven to be unreasonable and unjust, and yet 

 that shall preserve to the railroads just and 

 reasonable control over their properties and rev- 

 enues." 



In connection with the resolutions adopted by 

 the Interstate Commerce Law Convention it 

 might .ilHo be well for us to note a resolution 

 adopted by the Federal Rate Regulation Asso- 

 ciation, which Is as follows: 



"We are unalterably opposed to conferring 

 upon the Interstate Commerce Commission, or 

 any other appointive agency, the power to pre- 

 scribe rates for transportation, believing that 

 such action would prove a dangerous e.xperlmcint 

 Inimical to the best Interests of commerce and 

 the continued development of this country. 



"Recognizing existing evils connected with the 

 transportation Interests of the country: viz., all 

 forms of rebate or favoritism extenfled to one 

 Individual or locality to the disadvantage j>nd 

 detriment of others or effected through private 

 car lines. Industrial, terminal, or switching lines, 

 manipulation of freight r'lasslflcatlon. unfair and 

 unequal distribution of freight e»iulpmcnt. or 

 by any other or different means, we demand the 

 most rigid enforcement of the law, which. If 



found to be Inadequate, should he so amended as 

 to provide speedy, cfliclent and permanent re- 

 lief. 



"We recognize the great and almost universal 

 dissatisfaction with the interstate commerce 

 law as now administered or enforced is due to 

 the delay in reaching a determination of ques- 

 tions deiuauding early and final settlement, and 

 we urge upon congress the Imperative necessity 

 for providing the necessary machinery for re- 

 lief." 



I desire especially to call your attention to 

 the following paragraph in the resolutions 

 adopted at Steinway Hall, which reads as fol- 

 lows : 



"The Interstate Commerce Commission should 

 he vested with the power, where a given rate 

 has been challenged and after full hearing found 

 to be unreasonable, to decide, subject to judicial 

 review, what shall he a reasonable rate to take 

 its place: the ruling of the commission to take 

 elTect immediaetly "and to obtain unless and 

 \intil it is reversed by the court of review." 



In this i-onnection permit me to call your 

 attention to a paragraph from the resolutions 

 adopted at Music Hall, viz : 



"We are unalterably opposed to conferring 

 upon the Interstate Commerce Commission, or 

 ;njy oilier appointive agency, the power to pre- 

 scribe rates for transportation, believing that 

 such action would prove a dangerous experiment 

 inimical to the best interests of commerce and 

 the continued development of this country." 



You will note that the resolution adopted at 

 Steinway Hall favors the enactment of a law 

 by congress giving the Interstate Commerce 

 Commission the power, when a given rate has 



W. A. UUXNETT, CINCIN.N A'fl, U. 



i)een challenged and found to be unreasonable, 

 to substitute a reasonable rate, the same to 

 take effect Immediately, subject to revision by 

 the courts. In the resolution adopted at Music 

 Hall you will observe that it opposes con 

 fcrring any such power upon the Interstate 

 t^ommerce Commission. Tills, to my uiind, Is 

 the only vital point at Issue and the one to 

 which 1 will attempt to conllne my discussion. 



It Is simply a question of whether the govern 

 ment shall pass a law empowering the Interstate 

 Commerce Commission or some other proper body 

 to name a maximum rale where a challenged 

 rate has been found to be unreasonable and dls- 

 crlmlnatorv. Permit me, at this point, to stale 

 that the constitution of the United States pro- 

 tects the right of earnings wlilch are just to the 

 railroads and would not uphold the action of 

 any commission thai: would name an unreason- 

 able rate which would be considered as depriv 

 Ing such carrier of lis property without due 

 process of law and would, therefore, be a vio- 

 lation of the fourteenth amendment to the con- 

 stitution of the United States. Or, to put this 

 matter a little more clearly. It Is simply a ques- 

 tion of whether the government of the United 

 States will control and regulate the great rail- 

 road corporations doing an Interstate commerce 

 business, or whether the great railroad corpora- 

 tions will control the government. 



The main argument of those opposed to con- 

 ferring any power of regulation of rates upon 

 the Interstate Coninierce Commission Is that it 

 would be socialistic for the government to go 

 Into the Ijuslness of making rates, which they 

 contend Is what Preslilent Roosevelt and those 

 advocating his polliy demand. .\s It appears 

 lo me tliese are not fails at all. The friends 

 of rate regulation by the government do not ask. 



nor do they want, initial rate making power 

 vested in the government : nor was tliere a 

 sentiment among the commercial organizations 

 represented at Steinway Hall favoring any un- 

 fairness whatever toward railroads. The great- 

 est friends in the United States of the railroads 

 are the very people that they are trying to make 

 it appear are their enemies, none of whom would 

 for a nionieiit clnss themselves with any social- 

 istic moveineiit lo deprive the railroads of their 

 just constitutional rights, nor their rights to 

 make proper earnings on the actual capital in- 

 vested in accordance with tlie risks undertaken. 

 I would call your attention to President Roose- 

 velt's recent message to congress, from which I 

 quote the following: 



"I call your attention to the fact that my 

 proposal is not to give the commission power 

 to initiate or originate rates generally, but to 

 regulate a rate already fixed or originated by 

 the roads, upon complaint and after investiga- 

 tion. A heavy penalty should be exacted from 

 any corporation wliicli fails to respect an order 

 of the commis.sion. I regard tliis iiower to es- 

 tablish a maximum rate as being essential to 

 any scheme of real reform in the matter of rail- 

 way regulation. The first necessity is to secure 

 it ; and, unless it is granted to the commission, 

 there Is little use in touching the subject at ail." 



I would also call your attention to the ad- 

 dresses made at Steinway Hall and have you 

 observe that in no instance was there the slight- 

 est sentiment expressed in favor of the govern- 

 ment iuitiatiug railroad rates. The shippers 

 wish to be perfectly fair and reasonable with 

 the railroads, but as the matter stands today 

 the railroads have all the advantage over a 

 shipper with a just complaint of discrimination. 

 The shipper has practically no recourse except a 

 very expensive and doubtful process of law, 

 and It is shown that the time it would take 

 to get a final disposition of such a complaint 

 makes it absolutely Impossible for a man. during 

 his lifetime, to get any redress whatever. It Is 

 not desired that the government go into tlie 

 business of Initiating railroad rates, as this 

 matter should be left entirely with the rail- 

 roads, and I wish to make it clear that If the 

 Interstate Commerce Commission had the power 

 to name a maximum rate it would not in any 

 way interfere with tlie railroads? initiating rates, 

 and it would not disturb a single tariff now in 

 force except when upon complaint and investi- 

 gation said tariff was found to he unreasonable 

 and discriminatory. And I desire again to call 

 your attention to the fact tliat the Interstate 

 C'oninierce Commission, in exercising such power, 

 is prevented by the fourteenth amendment of 

 the constitution of the United States from nam- 

 ing a rate that wovild be unfair or unreason- 

 able for the railroads. 



I do not believe there is a man present who 

 does not realize the great good the railroads 

 have done in the devektpnient of our country, 

 nor do I believe there is a man present who Is 

 not friendly to the railroad interests. I am of 

 the opinion that the United States congress 

 should pass a law along the lines suggested for 

 increasing the powers of tlie Interstate Com- 

 merce Commission. The government unques- 

 tionably lias a right to pass siuh a law. which 



l'ALMi:U. Slli:i!l|i.\N. IMi 



would undouhtly be of great benetlt to both 

 shipper and railroad. 



There Is absolutely no occasion for the feel- 

 ing that has been expressed by those opposing 

 such legislation that It would cause a great 



