HEARINGS BEFORE THE COMMITTEE ON INTERSTATE COMMERCE OF THE UNITED STATES SENATE ON THE BILL (S. 1439) TO AMEND AN ACT ENTITLED "AN ACT TO REGULATE WASHINGTON: GOVERNMENT PRINTING OFFICE. 1900. AZ W 3451 HEARINGS BEFORE THE COMMITTEE ON INTERSTATE COMMERCE OF THE UNITED STATES ON THE BILL (S. 1439) TO AMEND AN ACT ENTITLED "AN ACT TO REGULATE COMMERCE," APPROVED FEBRUARY 4, 1887, AND ALL ACTS AMENDATORY THEREOF. WASHINGTON, D. C., Friday, January 26, 1900. The committee met at 10 o'clock a. m. Present: Senators Cullom (chairman), Chandler, Elkins, Kean, Tillman, and Allen. The CHAIRMAN. The committee has been called together to-day, out of its regular order of meeting, for the purpose of hearing some delegations who asked to be heard on the 26th, which is to-day. I understand that a portion of the delegation which made that special request are present, and some of the members of the National Board of Trade, which happens to have its session here this week, are also here. will begin by listening first to those who have asked for this hearing by correspondence with the chairman of the committee. Mr. Barry, I believe, is more familiar with the names of those who are present than anyone else, and we will hear him first. STATEMENT OF FRANK BARRY. وو The CHAIRMAN. Mr. Barry, before you proceed I wish to call your attention to the fact that the hearing asked for is upon the bill (S. 1439) to amend an act entitled "An act to regulate commerce, approved February 4, 1887, and all acts amendatory thereof. The bill is before the committee, and has been examined, I understand, by delegations outside-not railroad men, but business men. It is a bill prepared, in part if not entirely, by organizations outside of the committee and outside of the railroads as well. I ask your attention to that bill. The committee does not expect to hear statements on any other subject than that contained in the bill. You may now proceed. Mr. BARRY. Mr. Chairman and gentlemen, with your permission I should like to say that we have present here the following gentlemen, who would like to be heard: Frank Barry, of Milwaukee, Wis., secretary of the League of National Associations and secretary of the Millers' National Association of the United States; Augustine Gallagher, of St. Louis, Mo., commissioner of the Millers' National Association of the United States; E. O. Stanard, of St. Louis, Mo., St. Louis Chamber of Commerce and chairman of the National Board of Trade; E. P. Wilson, of Cincinnati, Ohio, secretary of the National Association of Manufacturers; L. B. Boswell, of Quincy, Ill., National Association 3 of Freight Commissioners and Quincy Chamber of Commerce and Quincy Freight Bureau; L. W. Noyes, of Chicago, Ill., the National Business League; E. P Bacon, of Milwaukee, Wis., president of the League of National Associations and the Milwaukee Chamber of Commerce; C. B. Cole, of Chester, Ill., president the Millers' National Association of the United States; J. A. Smith, of Charleston, S. C., commissioner Board of Freight and Transportation, of Charleston; paper by Dennison B. Smith, secretary Toledo Board of Trade, Toledo, Ohio; paper by S. N. Forbes, of Buffalo, N. Y., Buffalo Chamber of Commerce; F. B. Thurber, chairman Transportation Committee, National Board of Trade, New York City, N. Y.; H. F. Donsman, Chicago, Ill, Transportation Committee, National Board of Trade; Chas. England, Baltimore, Md., National Hay Association; Geo. F. Stone, Chicago, Ill., secretary Chicago Board of Trade; B. F. Howard, Chicago, Ill., representing Chicago Board of Trade; C. B. Congden, Chicago, Ill., representing Chicago Board of Trade; R. S. Lyon, Chicago, Ill., representing Chicago Freight Bureau and National Transportation Association; F. H. Magdeburg, Milwaukee, Wis., representing Milwaukee Chamber of Commerce; James A. Bryden, Milwaukee, Wis., representing Milwaukee Chamber of Commerce; F. W. Maxwell, St. Joseph, Mo., representing Commercial Club and Jobbers' Transportation Bureau; W. P. Trickett, Kansas City, Mo., representing Commercial Club, Board of Trade, Live Stock Exchange, Hay Dealers' Association, Manufacturers' Association, and Transportation Bureau, of Kansas City. We appear before your honorable committee to advocate your favorable consideration of the bill to amend the act to regulate commerce, known as Senate bill No. 1439, introduced by Senator Shelby M. Cullom December 12, 1899, which is now in your hands. No measure has been before the Congress of the United States for many years which has attracted more general attention or received the approval of the people to a greater extent than this. The bill has been carefully framed with the view to fairness and justice for the shipper and carrier alike. It is based upon the experience of those who have made the study of transportation problems their occupation, and the interests of all classes of shippers have been thoroughly considered and conserved. The aim in preparing the provisions for amendment of the present law has been to bring the act to regulate commerce fairly within the scope intended when it was originally enacted, February 4, 1887, and to add to its primary intent only such important changes as experience has taught are necessary or advisable. While this measure is less drastic than many wish, we believe that it will afford the relief which is demanded from the evils now existing, and we have preferred to correct the fundamental weakness of the existing law without attempting to go further in providing benefits which some believe to be fair and just. The very name of "The act to regulate commerce" expresses the intent of the original law. For a number of years after its passage its provisions were accepted as valid and binding. Through the legal construction of its terms by the courts, brought about by the systematic and well organized attacks of the most brilliant legal talent that could be employed, the act has been gradually stripped of its force and effect, until now it is impotent and valueless as a protection to the rights of either shipper or carrier. The Government is now maintaining a commission at great expense which is of little practical value or utility, the acts of which are merely advisory and the sessions of which have become, in the opinion of the people, but the performance of a moot court. While the act to regulate commerce as originally enacted may not have met with the broadest approval of the people at the time, the spirit of such a law has steadily grown in popularity, and you must be convinced that to-day a proper statute of this nature is firmly intrenched in the public desire. Believing this, we appeal to the Congress so to correct the present ineffective law that it may become what it should be for the protection of the vast commercial interests of our country directly dependent upon it. During the past few years the public has been steadily educated upon the subject of transportation, and appreciation of the weakness and inutility of the existing law has grown with marked rapidity. Repeated failure to secure justice through appeal to the Interstate Commerce Commission and the courts is creating an increasing feeling of unrest with the shipping public and breeding sentiment for Government ownership of the common carrier, upon which every commercial enterprise must depend so intimately, if Government regulation can not be had. The people of the United States can not afford to wait for the future enactment of this legislation which we seek in the direction of effective regulation. They have come to realize that movements have been for some time on foot which, if they reach consummation, will go far to neutralize any steps they may take short of political revolution. These movements are both found in the unification of industrial interests, commonly known as "trusts." They are of two classes; one is the so-called "industrial combination" and the other is the "railroad combination." Both have proceeded far on the lines laid out by their projectors, but neither, although their magnitude startles the civilized world, has yet gained sufficient power and influence to control public opinion or the suffrages of the people. The commercial interests, acting for themselves and for the whole people, who are directly interested in this measure, feel strong enough, therefore, to confidently urge this legislation upon the attention of Congress. This is the greatest antitrust law that Congress can place upon the statute books, because it strikes at the conditions which make the industrial trust possible. Without the favors in transportation which are not only granted to, but are often forced by, the great trade and manufacturing combinations, they could exist only with great difficulty and must finally succumb to the successful competition. of independent manufacturers and tradesmen. The very broad public sentiment existing, favorable to this legislalation, is mirrored in the press of the land at the present time. Leading editorials and lengthy statistical arguments for this bill have appeared in the foremost daily and periodical publications of our principal cities. Commercial organizations throughout the entire country have taken an active interest in supporting this movement and indorsing the bill, such as they were never before known to evince in any subject. A conference of national associations of manufacturers and shippers |