Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-06
CAN CONTROL RATES
Right Of Congress to Regu-
late Railway Operations.
MANY DECISIONS CITED
ATTORNEY GENERALS OPINION
SENT TO SENATE COMMITTEE.
Holds That the Power to Make Rules
for Common Carriers is Not
Judicial.

Attorney General Moody has sent to
Senator Elkins as chairman of the Senate's
interstate commerce committee an exhaus-
tive opinion as to the right of the govern
ment to regulate the operations of rail-
roads, especially in the matter Of fixing
rates.
The Attorney General holds that the gov
eminent has full right to regulate the
operation Of the railroads and to prescribe
the maximum rates which they may
charge. He holds that this power is vested
in Congress.
Settled in the Granger Cases.
The opinion was given in response to
the committees request, and is in SUBJ
stance follows:
ct was settled In the group of cases
commonly called the Granger cases. that
there is governmental power to regulate
operations of railroads acting as common
carriers, and, as a part of such regula-
ton, to prescribe the maximum rates which
they may charge in the future for the
services which they shall render to those
who resort to them, and that the power is
vested in, and may be exercised by, the
legislative branch of the government.
These cases affirm the right of state
legislature to confer the power in question
upon a state commission. No reason has
been advanced, and none can be perceived
why the same principles would not apply
to Congress. The right OF Congress to
confer upon a commission the rate-making
power was distinctly presented to the court
In the case of the interstate commerce
commission VS.. Cincinnati, New Orleans
and Texas Pacific Railway Company.
Assuming that the rate-making power
is a legislative function and not judicial
It follows that Congress has not the right
to vest 1t in the courts either by confer
ring the original or appellate jurisdiction
over the subject.
Interpreting the Law.
After citing many Supreme Court deci-
sions to support his opinion, the Attorney
General submits this summary:
''First-There is governmental power to
fix the maximum future charges of carriers
by railroad vested in the legislatures of the
states with regard to transportation exclu-
siyely within the states, and vested in Con-
gress with regard to all other transporta-
ton.
''Second-Although legislative power, prop
erly speaking, cannot be delegated, the law
making body, having enacted into law the
standard of charges which shall control,
may intrust to an administrative body not
exercising in the true sense judicial power
the duty to fix rates in conformity with that
standard.
judicial function, and cannot be conferred
constitutionally upon the courts of the
United States, either by way Of original or
appellate Jurisdiction.
"Fourth-The courts, however, have the
power to investigate any rate or rates fixed
by legislative authority and to determine
whether they are such as would be confis-
catory Of the property of the carrier. and If
they are judicially found to be confiscatory
in their effect to restrain their enforcement.
"Fifth-Any law which attempts to de-
prive the courts of this power is unconsti-
tut1onal u
.sixth-Any regulation of land transpos-