of the first States to create a Railroad Commission and give to the Commission power over rates.

Inequalities and discriminations do exist, but, will granting to a Railroad Commission power over rates prove a remedy? All discriminations are not made for the purpose of increasing the tonnage of the road. Railway officials, having power over rates, have in the past profited by such concessions as well as the shipper to whom they were granted. A dishonest traffic manager could as easily violate a rate made by the Commission as one made by his own management.

We had upon the calendar of the Supreme Court in the City of New-York, (Borough of Manhattan,) October 1st, 1903, 9,618 civil jury cases and 2,399 equity cases awaiting trial. About 18 Justices, (including those assigned from "up-State,") are engaged in disposing of these cases. With this condition of affairs it requires three years in order to force a jury case to trial, and the equity calendar is about two years behind. These facts were fully set forth in the testimony before the Commission on the Law's Delays and in their report to the Legislature last year.

The report of the Inter-State Commerce Commission, 1904, page 64, states that there were, on January 30th, 1904, 2,358,960 tariffs on file with the Commission, the average number of tariffs filed annually being over 130,000. It is proposed to devolve upon the Inter-State Commerce Commission the duty of inquiring into the justice and fairness of the rates contained in these tariffs, and whenever they find a rate to be unjust or unfair, to fix and determine, subject to review, what the same shall be in the future. The Courts have decided that a rate, to be legal, must be fair to the investors who own the road as well as the shippers—a rate that amounted to confiscation would not be legal and would not stand. The magnitude of this task of determining a just rate cannot better be shown than by employing the language of the Commission as set forth in their report for 1893, page 100:

"To give each community the rightful benefits of location, to keep different commodities on an equal footing, so that each shall circulate freely and in natural volume, and to prescribe schedule rates which shall be reasonable, just to both shipper and carrier, is a task of vast magnitude and importance.

In the performance of that task lies the great and permanent work of public regulation."

On the same question they say in their report for 1895, page 59:

"No one who understands the intricacies of transportation would care to assert that the determination of a just rate, or the decision as to what constitutes discrimination, is an easy task. To some extent the principles upon which taxation rests must be allowed in fixing a just rate; to some extent the result of the rate upon the development of industries must be taken into the account in all decisions which the Commission is called upon to make; to some ex

tent every question of transportation involves moral and social considerations, so that a just rate cannot be determined independently of the theory of social progress."

Is it not imposing an unreasonable physical strain to expect any five or seven men to perform such a task? We have the greatest respect for the Inter-State Commerce Commission, but we cannot ignore our everyday experience in business affairs, and they teach us that granting such power to the Inter-State Commerce Commission and imposing upon them such duty is likely to lead to disappointment. Some idea of the magnitude of this undertaking may be gained from the fact that the earnings of the railroads last year were in excess of $1,900,000,000, and their capitalization in excess of $14,000,000,000, and the internal commerce of the country, largely transported by rail, has been estimated at $22,000,000,000. Is the present method of making freight rates generically wrong? The railroads should be required, by proper statutes and proper penalties, to observe the well defined duties that devolve upon common carriers, but, is it not wiser to leave with them the responsibility of making rates?

The Supreme Court, in discussing the powers and duties of the Commission, (167 U. S. 479,) say, (p. 506,):

"It is charged with the general duty of inquiring as to the management of the business of railroad companies, and to keep itself informed as to the manner in which the same is conducted, and has the right to compel complete and full information as to the manner in which such carriers are transacting their business. And with this knowledge it is charged with the duty of seeing that there is no violation of the long and short haul clause; that there is no discrimination between individual shippers, and that nothing is done by rebate or any other device to give preference to one as against another; that no undue preferences are given to one place or places or individual or class of individuals, but that in all things that equality of right, which is the great purpose of the Inter-State Commerce Act, shall be secured to all shippers. It must also see that that publicity, which is required by Section 6, is observed by the railroad companies. Holding the railroad companies to strict compliance with all these statutory provisions, and enforcing obedience to all these provisions, tends, as observed by Commissioner COOLEY in In re Chicago, St. Paul and Kansas City Railway, 2 Int. Com. Com. Rep. 231, 261, to both reasonableness and equality of rate as contemplated by the Inter-State Commerce Act."

The Commission, with their powers of inquisition, can discover the wrong, develop the evidence to prove the same, commence suit in the Courts to effect a remedy-but, is it not better that the trial be had in the same Courts and with the same procedure in which the Government, corporations and individuals alike now seek redress? The constitution of these Courts and methods of proce

dure are the growth of generations, and are believed, in this enlightened age, to be the best method of enforcing rights and redressing wrongs.

The creation of additional Judges or the assignment of existing Judges to a specially constituted Court in order to facilitate the hearing and determination of cases arising under the Inter-State Commerce Law would be wise and commendable, but it seems to us that railroads, like individuals, have the right to have questions involving their management and welfare, including making rates, passed upon by competent Judges, after a hearing conducted according to the usual rules of judicial procedure, before the same be adjudged wrong. The railways, through the ownership of their securities, represent a very large number of our citizens. The wealth of our country is very rapidly increasing. This is true of all localities and of all classes, and the securities representing the capitalization of our railroad systems are owned in varying degrees by our citizens throughout the length and breadth of the land. Large and small investors own the same directly and the poorer people own them indirectly, through their deposits in the savings banks and their interest in the life insurance companies. Investors in these securities are entitled to consideration at the hands of the Government, as well as those who make use of transportation facilities. The army of employees who derive their living from these corporations also have rights involved in any serious change in railroad transportation.

Such wrongs as exist should be righted. The President has our cordial sympathy in his efforts to right these wrongs, and both the President and Congress shall have our earnest co-operation, but we cannot persuade ourselves, in the light of our own experience, that granting the rate-making power to the Inter-State Commerce Commission will realize the good that advocates of the measure hope for.

It is a proposition to directly determine the earning capacity of certain properties, and, therefore, to fix their value. It grants great power over such earning capacity without any responsibility on the part of the men who exercise that power, to protect the values or the income of the same, other than the responsibility to properly discharge an official trust. It is a fundamental departure in governmental administration, the success of which is at least problematical, and fraught, we fear, with grave danger. It would undoubtedly be well administered under the present Administration, it might be under many Administrations, but it is easy to conceive an administration of such a power that would be prejudicial to the public interest.

Let the statutes clearly define the duties of railroads as common carriers, with proper penalties for all infractions of the law; let the Commission exercise their power of inquisition to the fullest extent; bring all questions which the railroads fail to adjust before the Courts, and then let the Courts redress the wrongs and enforce the rights thus brought before them.

We believe a vigorous exercise of the powers which the Com

mission now possesses, and a vigorous enforcement of existing laws, would go very far toward correcting existing evils.

The report was, on motion of Mr. HEPBURN, unanimously adopted, ordered to be printed and a copy sent to the usual officials at Washington, and to each member of the Chamber.

Mr. HEPBURN reported back the preamble and resolution referred to the Committee at the last meeting of the Chamber, in reference to the improvement of the highways of the State, amended as follows:

Good roads or highways are indispensable to the convenient and economical conduct of the internal commerce of our State. The farm products of the State are estimated at 12,000,000 tons, and the tonnage transported from farms and homes and marts to railway and waterway, added to the tonnage transported from railways and waterways to the point of consumption by our people, form a very large aggregate indeed.

The total highway mileage of the State is 74,000 miles. The State has entered upon an elaborate system of highway improvement whereby certain main thoroughfares are selected for improvement by the conjoint action of the State authorities and the authorities of the town and county where the improvement is to be made.

Fifty per cent. of the cost of the improvement is borne by the State, thirty-five per cent. by the county and fifteen per cent. by the town. It is proposed to improve in this manner one mile in ten of the highway system of the State,-about 7,500 miles—the main arteries of travel being selected for this purpose. The estimated average cost is $7,000 per mile. It is impracticable to increase the annual tax levy a sufficient amount to provide for the proper accomplishment of the proposed highway improvement. In order, therefore, that the public may presently realize the benefits anticipated, it is necessary that the State be authorized to borrow money for such purpose.

The Legislature of 1903 passed a concurrent resolution proposing an amendment to the Constitution of the State, so that "a debt or debts of the State may be authorized by law for the improvement of highways. Such highways shall be determined under general

laws which shall also provide for the equitable apportionment thereof among the counties. The aggregate of debts authorized by this section shall not at any one time exceed the sum of fifty million dollars." etc.

Resolved, That this Chamber approves the general scheme of highway improvement undertaken by the State and endorses the proposed amendment to the Constitution above referred to, and recommends to the present Legislature the passage of the same in order that it may be submitted to the people for popular vote at the general election in the fall of 1905.

The preamble and resolution were unanimously adopted, and a copy ordered to be sent to the Governor, to each member of the Legislature, and to other commercial bodies of the State.

Mr. HEPBURN further reported the following preamble and resolutions, urging an increase of the appropriation for the State's representation at the "LEWIS and CLARK" Exposition at Portland, Oregon :

Whereas, A Centennial Commemoration of the "LEWIS and CLARK Exploration," set on foot by President JEFFERSON, has taken the character of a National as well as an International Exposition at Portland, Oregon, this year, to be opened on the first day of June next; and

Whereas, Seven Commissioners have been appointed by the Governor of New-York to represent the State at said Exposition;

and

Whereas, A preliminary appropriation of $35,000 was made by the last Legislature for such purpose; and

Whereas, That sum is thought to be inadequate to the proper representation of the Empire State; therefore, be it

Resolved, That it is the sense of this Chamber that the appropriation already made should be increased by the present Legislature so as to make it equal the sum of $100,000;

Resolved, That a copy of these preambles and resolutions be sent to His Excellency the Governor, and to the members of the State Legislature.

The preamble and resolutions were unanimously adopted.

RESOLUTIONS.

ANTON A. RAVEN offered the following preamble and resolu