Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-02-02
Relieving the Railroads.

ACHIEVING thC AedllAoduo
:" While it may be a wise policy TO incor-
porate the rule of reasonableness into the
regulation by law of contracts between in
dividuals and contracts of Industrial cor
porations which are private corporations.
that rule has never been applied to what
are known as asi-public corporations
railroads, for example, which exercise pub
lie functions and enjoy public rights They
owe duties to the public as the considera-
ton of the grant to them of public fran
chises among which is the duty to refrain
from restraining competition in rates. serv-
ice and facilities. This amendment would
tend to relieve them from many of their
most important duties to the public. It's
enactment. instead of being protection TO
commerce, would be to effect an undoing
of very much of the most important RENE
dial legislation of the past fifteen years.
If this proposed amendment shall he re-
garded wise legislation, 1t ought not 10
be done secretly, but openly with fun
knowledge of the public and fun oppoftu-
nifty to it to be heard on the subject Such
an amendment is now proposed ought
not to be attached to any bill in the clos
ing hours of moribund Congress.
"a The statement that the proposed amend
ment is in line with the suggestion haae
i'm an address at Pittsburg i'm October. 1"p2
is a great mistake mistake based upon
a misoonception of the rule of the common
law and the difference between the applica-
ton of the rule to undertakings that are
strictly private and those that are pubic
or quasi public. In that address, the main
purpose of which was to show that the
power of Congress was not exhausted ps
the Sherman act, in discussing the exercise
of that power over the Industrial trusts,
said:
Control Over Commerce.
1.-THE extent to which Legislative control
over commercial activities should be exer-
cjsed is. of course a question for legislative
wisdom Primarily, it is for the
Congress to decide whether ii has the
power, and whether and to what extent IL
will execute it-what character OF re-
straints. whether air those only which
are unreasonable and injurious shall fan
under the BAN whether legislation in the
first instance shall extend to all commerce
or only to commerce IN articles OF vital I'M
portance to the public
81 stated that If the common law were
INCORPORATED into A federal statute, the rule
for its INTERPRETATION would he as lald
down by the Supreme Court OF the nlted
States. namely: -,
II be not involved and the restraint upon
one party is not greater than protection
to the other party requires. the CONTRACT
may be sustained.
.aFhe proposed amendment oVerlcoks the
fact that the public welfare is involved in
any restraint that public corporations may
impose upon themselves. and therefore the
amendment does not propose 10 INTRODUCES
the rules of the common law. bnt It's
enactment would be legislative grant OF
power to restrain commerce. prohibited pS
the common law, as all restraints which
affect the public welfare inJuriousiy are
void at common law.
1.-The above are few of the objections
to the proposed legislation, which imfnedf
ately occur to me.