Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-30
TRIED N FLORIDA
Railway Rates Fixed by Gov
eminent Commission.
WORKS WITH HARMONY
REPRESENTATIVE LAMAR DIS
CUssEs RATE LEGISLATION.
Believes That the People Are Behind
the President in the
Matter.

of Florida, who took a prominent part
upon the railroad rate question when that
matter was before Congress, was inter-
viewed by q reporter OF The Star recently
upon different phases OF the rate problem.
II do not think there can be any doubt
about the constitutional powers of Congress
to 1egislate upon the subject OF railway
rates and regulate the same" he remarked,
"and that the Congress itself can do this
by direct legislation Of its own. or 1t can
delegate the power to an administrative
body like the interstate commerce COM
mission he declared when asked his opin-
ion on the general subject of railroad rate
legislation and the power of Congress UNI
der the Constitution to enact such leg.sa-
ton. He added that he based his opinion
thus expressed not only from thorough
study of the problem since President Roose-
velt's message to Congress urging Its en-
actment, but that during his eighteen
years service as attorney general OF the
state of Florida, handling cases involving
the Florida railroad commission, he was
capable of vo,cing his views on this topic.
DO you think legislation Will be enacted
at the coming session of Congress?"
THAT l cannot say he replied. Il be-
lieye the House OF Representatives will pass
some bill like the Esch-Townsend bill OF
last session, with some improvement OF the
same. but that there will be furious strife
in the Senate over such bill there can De
no doubt, unless all present signs fall.
THE people of the state of Florida have
a railroad commission invested with power
to make all railroad rates de novo. much
broader power than the Esch-Townsend Dill
confers upon the Interstate commerce COM
mission. That law works with entire har-
mony in my state. Very little litigation has
grown out of rates fixed by the Florida
railroad commission. and the same result
will happen, in my opinion, ii the interstate
commerce commission Is invested with the
power recommended by President Roose-
welt. A good deal OF wild talk Is INDUCED
in in the speeches Of railway officials and
in newspaper articles with reference to this
proposed legislation. 1t is called radical
'socialistic,' and even to the extent of being
termed 'anarchisttc. Nearly every great
reform that Is carried In government over
self-interest is entitled In like manner. and
experience shows that every self-intereSt
in government that has withstood a legiti-
mate and reasonable reform has been over
thrown and in some cases destroyed.
Admires the President.
Judge Lamar expressed an admiration
for President Roosevelt and his courage in
approaching the great question at issue.
Reaching into a pigeon hole in his desk,
he took out the Presidents last message
to Congress and quoted the following rec
ommendation from it: TN my Judgment
the most important legislative act now
porations Is this act to confer on the in
terstate commerce commission the power
to revise rates and regulations. the re-
vised rate to go at once into effect and to
stay in effect unless or until the court of
review revises 1t.
THE whole struggle throughout the
country" Mr.. Lamar continued land in
the Congress Of the United States will re-
volve around this recommendation Of
President Roosevelt. The mass OF the
people throughout the country indorse
this recommendation Of the President. I
am aware that this recommendation is
called radical by those who oppose CIV
ing to the interstate commerce commits
sion this recommended power. The Presi
dent himself is called radical in his
views. simply because he makes this rec
ommendation Every person in Congress
and out of Congress who Endorses this
view of the President is also called 'radi-
CAL Those who oppose this legislation
anx 1eE watH
From a close study Of the subject do
you not think this proposed legislation
would materially injure or threaten the
interests Of the railroads. Judge Lamar
was asked.
Not at ALL" he replied.
Railway Interests Not Threatened.
at Is not sought to upset all existing
rates throughout the country in confer
ring this rate-revising power upon the
Interstate COHuSTCo COHtuuiSSioH nave
not tho slightest doubt that If all the rail-
roads of America were completed just at
this moment, and tariff sheets Of rates,
passenger and freight, were to be at this
moment made for them, they would be
made much lower than the existing rates
roads OF this country. It Is impossible to
go back and ransack all railroad rates and
reduce them in equity and In justice upon
the basis OF a bona flde cost of the rail-
1r hA ont hat
bonds and stocks have been issued and
issued for the past fifty years and
in many cases have passed Into the hands
OF innocent holders and purchasers and
have become existing bona flde obliga-
lions upon the railroads, but that a vast
quantity Of these bonds and stocks are In
their very nature and essence pure
fraud upon the American public there
cannot be any doubt.
Overcapitalization Of Roads.
"Mr. Parsons has stated that the total
capitalization Of railways In this country
was q little over 10000 per mile, and that
the actual value, according to Poors fig
ures as to the cost OF reproduction. would
be under 10000 per mile.
'In recent case. the Northern Securi-
ties Company VS.. United States Q93 U. g..
1870, 1t was shown that the capital stock
was issued to purchase the capital stock of
the Northern Pacific and Great Northern
companies. was $4OO,00OOoO. and that this
was greater by the sum OF 1922, coo. coo than
the combined capital stock OF the two COM
panies to be merged.
Now what does all this mean? It simply
means that upon this overcapitaiixation the
public has to pay interest on bonds and
dividends ON stocks which have no exist
ence In right. but which is nothing more or
less than wind and water and Is merely
the medium Of extorting money from the
shipping and the travelling public. But, as
I said before. these things happened 80
long ago In a great many cases It may be
utterly impossible at this late day to al
together adjust rates, passenger and freight,
upon the basis OF the real value OF con-
struction of the railroads. The only thing
that would be accomplished under the pres
ent proposed legislation would be for the
interstate commerce commissioners to ex-
anime throughout the country the rates that
are complained Of and adjust them between
the railroads and the shippers upon the
basis OF right. Certainly this IL very
just power to confer upon a governmental
board. 1t Is much better for the public
at large that this board have this power
than It be left to reside, as at present, In
the hands OF the railroad companies.
Railway Rates Not Falling.
''The railroad companies for the past