Note 93 — SECTION XV. PROPOSALS FOR FIXING RATES BY RAILWAY COMMISSION— CONCILIATION COURTS.

The rates for “interstate” traffic in the United States are not at present subject to any Government control, but are made at the discretion of the companies to meet the requirements of trade, competition by rail and water, and of cities. Two Bills for the regulation of the interstate traffic of railways have recently been before Congress; one, the “Reagan” Bill, which proposes to fix the charges, to prohibit any discrimination, and to make it illegal for railway companies “to combine or to pool” their receipts without stringent provisions and penalties. The other Bill, entitled the “Cullom” Bill, proposed the appointment of an Interstate Commission consisting of five members, but did not provide for any specific or maximum rates for the transportation of passengers or merchandise, except that they should be reasonable and that there should be no unfair discrimination; while laying down the principle that the rates should be in proportion to the distance carried, it proposed to give to the Commissioners power, in their discretion, to allow lower rates to be charged for long, as compared with short distance traffic. The former Bill passed the House of Representatives and was rejected by the Senate; the “Cullom” Bill passed the Senate, and was rejected by the House of Representatives.