The clarion. [volume] (Jackson, Miss.) 1883-1888, 1886-12-22
The Railroad Commission and Major
Bond

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EDITOR CLARION: In your editorial
which discusses the issue between Maj.
Bond, Receiver of the V. & NJ. Railroad
Company, and the Railroad Commits
sion, you lose sight of that issue and close
with the suggestion that | deny the
right of the Commission to regulate
freight rates, and you characterize the cor
poration | represent as merciless. What
/ do deny is, and what | did deny was,
the right on the part of the Commission
in our case to originate tariffs and adjust
rates, regardless of the law of their be-
ing. l do not suppose any lawyer would
be simple enough to deny or question
the right of the Commission, in respect
of domestic traffic, "to revise" the tariff
handed in by the Receiver $50 as to al
low a fair and just return on the value
of the railroad, its appurtenances and
The law itself declares
this fact; but the power to revise is linn
tied. To revise tariff $50 as to allow
a fair and Just RETURN and to make
tariff outright, without reference to such
return, are different things. The Com
mission do not arrange tariffs, they re-
wise them; and that, not to destroy a
railroad, bankrupt its controller, and
impoverish its owners, but to make the
property yield fair and Just return.
Judge Hill having the case before
him, both parties being represented by
counsel, passed the following decree:
SIT appearing to the court, from the re-
port OF F. S. Bond, the Receiver, and the
statements made of the earnings and ex-
penses Of the operation and maintenance of
said road and appurtenances etc, that said
railroad was, during the past six months,
operated at a loss OF nearly forty thousand
dollars, and that, under the tariff of
charges fixed by the Railroad Commits
sion, this loss cannot be made up from the
earnings of the road for the next six
months, after paying all necessary ex-
penses and charges, including taxes; 1t
is, therefore, ordered that +. ). Bond, Re-
ceiyer. make out schedule of rates for
transportation of freights over said railroad
to be shipped from points within the State
to other points within the State, and that,
in doing so, no unjust discrimination shall
be made in favor of, or against, any indi-
vidual or place, and that such rates shall
be made, Judging from the past and rea-
sonable prospective business done on said
railroad, including all its income from in
terstate transportation, transporting the
United States mail, express transportation
and otherwise, as will be sufficient to pay
all the expenses of operating the road,
keeping in repair the road-bed, track,
bridges, rolling stock, etc., together with
all taxes, damages for injuries to persons
and stock, and other costs and expenses
incident to operating the road, and pay an
income, to be applied to the payment for
the purchase OF rolling stock and other bet
terments and TO the Indebtedness OF said
railroad company, not to exceed SIX per
cent. on the estimated cash value OF said
road, with its rolling stock and other prop
erty used aud employed in operating said
railroad. 1t is further ordered that said
Receiver submit said schedule of rates to
the Railroad Commission of the State for
revision. 1t is further ordered that the
rate for travel over said railroad be con-
timed at three cents per mile, as hereto
fore fixed by the order of the Commits
sion"
The facts on which this decree was
based cannot be controverted unless one
should resort to wild speculation as to
the result of reduction in freight rates.
The incoming freights must be measured
by the ability of the people to buy, and
this ability, by the cotton shipped out.
Freight cannot be conjured up by a ma
gician's wand. do not doubt that the
Commission made an unlntentional
mistake in providing a tariff for our
railroad, and feel sure they will do us
Justice when they shall revise the tariff
submitted to them under the order of
Judge Hill. / cannot conceive it posi-
BILE for them to act arbitrarily In the
matter without regard to consequences.
Your statement that Judge Hill has
ignored the Commission is not sustained.
He has, in the face of an actual loss, re-
ouired the Receiver to retain the rate
for travel fixed by the Commission, be-
cause of the belief, as | think, that 1t
would result in increasing the number
of passengers; and, if not, that the total
loss in a years operation would not en-
danger the property or severely affect
the rights of creditors. He has fixed
the correct basis upon which the freight
tariff must be adjusted, and ordered the
Receiver to submit it for revision by
the Commission according to law. This
has been done, and your nicely rounded
expression that the Receiver has snapped
his fingers in the face of the Commits
sion hardly consists with the facts. He
did not obey the tariff last fixed by the
Commission, on the advice of his coun-
sci. for the reasons stated in his petition
against them: it attempted regulation
of interstate commerce, and was other
wise in violation of the statutes of the
State. In other words, it was the result
of a prerogative not possessed by the
Commission and exercised without right.
There was no law requiring him to obey
such tariff or even any tariff prescribed
for him. HE had the undoubted right to
disregard it, and no one has any substan-
tial cause to denounce him for 50 doing.
He elected to stand at bay and be sued
for the penalty, rather than invite ruin
and incur bankruptcy by obeying what
he knew to be an ufwise, illegal, and
order.
Now / do not propose to invite dis
cussion as to whether / pursued the
proper remedy in such case. My judg
ment indicated the course followed, and |
have no doubt our State courts would sus
tain the proceeding in just the case pre-
sented. The Federal Court had exclu-
sive Jurisdiction of its Receiver, and
ought not, in my opinion, have allowed
him to be sued elsewhere. Judge Hill
has decided, in case made up, that the
tariff heretofore prescribed by the Com
mission was not according to the statute,
and he ought SO to have held Our con-
tention was that the Commission ex-
ceeded their jurisdiction, and there was
nothing in our proceeding calculated,
when Justly considered, to raise a
,lamor. w. L. NUGESr.