Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-09-11
RAILWAY REGULATION
CONTROL MAINTAINED BY
THIRTY DIFFERENT STATES.
Tendency to Include Other Corporations
Changes in Laws of
Taxation.

Statistics covering parts of a general re-
port on the state regulation and taxation of
railways in the United States has been
made public by the interstate commerce
commission.
The number Of states which in 1902 exer-
cised control over railways through COM
missions was thirty. Six states which In
1880 were without commissions established
them during the period, of which two were
subsequently abolished; four states which
in 1880 had commissions abolished them,
but in two instances subsequently re-estab-
lished them. In the case of two states. how
ever, the abolition Of railroad commissions
does not indicate a disposition to relieve
railways from public control. On the con-
trary, the purpose was to clear the way
for the organization of a system of control
believed to be more efficient than that OF
: railroad commissions.
State railroad commissions are of two
general classes, which. for convenience,
may be termed the weak commissions
and the strong commissions, the former
including those which do not have control
over passenger and freight rates, the latter
those which are clothed with the power to
exercise such control. OF the twenty-eight
commissions in existence in 1880, hfteen
were strong and thirteen were weak; of the
thirty commissions existing In 1902, twenty
were strong and ten were weak. NO state
which in 1890 was clothed with the power
tendency during the past twelve years, SO
far the expressed will Of legislators is
concerned, is in the direction of more efH-
cient control over rates
Extension Of Regulative Power.
Another pertinent fact disclosed by this
compilation of railway statutes is the tend
ency toward extension Of the regulative
power of commissions over transportation
agencies other than railways. In 1902 eight
ont
railways, four steamboat companies,
thirteen over express companies. eight over
telegraph companies, two over telephone
companies, five over transportation com
panies, fast-freight companies, etc, hve
over railroad bridge companies, one over
railroad tunnel companies, three over rail-
road ferry companies, five over warehouses;
three over union depot companies, six over
car companies seven over sleeping car
companies. one over harbor companies. ana
one over all railroads operated by steam or
otherwise, including tramways, making In
all seventy-two cases of control by state
railroad commissions over agencies or trans
portation other than railways. as against
forty-one In 1880.
Inclusion Of the Other Corporations.
A study OF the railway statutes during
the past twelve years indicates a slight dis
trust of the ability Of railroad commissions
as at present organized to control the rail-
way situation. 1t also shows tendency
(not as yet very marked toward including
other corporations as we'll as railway cor
porations under the control of state boards
The most marked Illustration OF the FORMER
Is found in the court of visitation, estap-
lished in Kansas in 1898. The law estab-
fishing this court aimed to combine ad-
ministrative and judicial functions deemed
necessary for the satisfactory control OF
railway operation. In 1900 1t was declared
void on the ground that in 1t the "legisla-
tive. judicial and administrative powers are
SO inextricably interviewer as to render
their separation impossible" An illustra-
ton of the second tendency referred to Is
found in the Virginia corporation compl,s-
sion. which came into active existence
March 1, 1903. In general. this commits
sion is empowered to supervise all corpora
lions.
The general fact relative to state rail-
way taxation Is that railway property Is
taxed on the basis OF valuation. The spe.
cial rules Of taxation for this species Of
property refer rather to the assessment,
the levy and the collection of the tax than
to theory or general principles. In 1890 it
railway taxation was toward the substitu-
ton of taxes on gross or net earnings, or
on dividends or some other feature OF spe-
cial taxation. for taxation based on valua-
ton. A review of the tax laws In 1902 does
not warrant such a statement at the pres
ent time. There seems to be no tendency
during the past twelve years toward the
abandonment Of the theory Of the general
property tax, SO far as railways are con-
cerned.
Changes In Laws Of Taxation.
The changes which have taken place in
the laws Of taxation since 1880 refer rather
to methods Of valuation and to the ma
chinery Of administration; they also indi-
cate many experiments in the apportion-
ment OF the proceeds of railway taxation
between the states and the minor civil divi-
sions. There is some slight indication of
tendency toward what Is termed the segre-
cation of railway taxation, by which this
species OF property is made the basis Of