The times. [volume] (Richmond, Va.) 1890-1903, 1891-12-20

()ne of the most important powers tnAt
government can exercise IN its control OF
railroads 10 tho regulation Of its rates. a. tns
power Of the railroad to collect money Tor
the service rendered ia the very life OF tho
railroad.
The Supreme Court Of the United States,
however. in the case Of Stone against farm-
ers Loan and Trust Company, says;
This power TO regulate is not power 70
destroy; Limitation is not the equivalent OF
confscation. Under pretense OF regulating
the fares and freights the State cannot re-
quire railroad corporation TO carry persons or
property without reward; neither can u 90
that which in common law. amounts 10
taking Of private property for puohc use
without Just compensation or without oue
process OF law" In the case Of the Chicago
Milwaukee and ST. Paul Hallway Com
pany against the Minnesota halIroad
and Warehouse Commission the same
court decided that the arbitrary power
which had been given that commits
sion to fix rates finally was unconsu-
tutiopal. in that no hearing IS pro-
yi6ed for; no summons or notice TO the COM
panv before the commission has found what
il is TO find. and declared what 1t IS 10 declare
| No opportunity provided for the company to
| introduce witnesses before the commisslon
il fact nothing which has semblsnce of due
process of law"
II is true that in the proposed Kent bill IN
appeal from the decision OF the commission IL
gwen. which enables the railroad subsequently
to rectify tho arbitrary act Of the commission.
This seems 10 invert what is tho natural course
TO be pursued under the principles laid down
by the supreme court, assuming that the
railroads have the right to make their
own rates under the original power given
them to that effect by the Legislature,
aud that it is only in cases where a railroad
transcends the bounds Of what is reasonable
and Just that the State desires TO limit its eI-
orcise of this power 1t seems plain then,
that any action taken under the guise of law
in behalf of the State to control railroad IN
the matter of rates should be at once begun
before the courts. To effect this we approve
the following principles, which should be in
corporated in any statute intended 10 regulate
railroad rates:
l. Rates as fixed by railroads TO be allowed
until the Same are altered as hereinafter pro-
! vided.
| 2. Objection % rates may be made either
| by the commission on its own motion or upon
the suggestion of any one asgrleved by any
rate alleged 10 be unreasonable and I'm ust.
| 3. If the commission deems the rate OBJ
| jected TO unreasonable and unjust 1t shall
notify the railroad company 10 change the
same after reasonable notice to proper rate
/ to be fixed by the commission.
4. If the railroad company refuse TO adopt
the rate as fixed by the commission. the CON-
mission shall forthwith summon said railroad
before the court having proper jurisdiction
to compel said railroad to adopt the rate fixed
by said commission, or such other rate as the
court may ascertain to be reasonable and
just.
5. Pending this decision, any rate collected
by the railroad in excess Of what the court
shall decide to be reasonable and just shall
be refunded by said railroad to the shipper.
6. All proceedings to correct rates or to en-
force such as are reasonable and just shall be
pressed to prompt trial, and such cases and
any appeals therefrom shall be- deemed prlvi-
legged. and shall have precedence IN the court.
Z. If the decision of the court is against the
railroad it shall pay all costs of the proceed
ings.