The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-09-30
MIR. OLNEY TO THE FRONT.

/ the Democratic administration of Mr..
Cleveland was because they believed
| it was dominated by the monopoly
magnates of the country. AS result
in 1894, they administered the greatest
rebuke to the Cleveland administra-
ton ever given in the history \ Of
America. Every Northern and West
ern State and five Southern States
registered their verdict:
Weighed in the balance and found
wanting"
1t was not wholly deserved and yet
much of it was deserved, and particu-
larly because, going into office upon
the leading issue to reduce tariff and
end trust control, not word was said
about the tariff until the Wall Street
crowd had compelled the repeal of the
Sherman Silver Purchasing act, guar
anteed to end the panic. 1t was a
nostrum that aggravated instead of
and monopolies, they were in clover
during the whole Cleveland admins
tration, and the people saw that they
were in the saddle.
When Mr.. Olney, able lawyer, went
into the Cabinet that was notice to the
transportation monopoly that it could
do as it pleased, and all the other
trusts did likewise. Mr.. Olney bolt
ed with Cleveland in 1896, but in 1900
he stood against imperialism, and in
1904 he made truly great speeches
against the policies of the Republican
party. He is a big mana very great
man intellectually-but his long train
ing as railroad attorney has so biased
his opinion that he looks at any propo-
sition from the standpoint of a rail-
road man. Therefore he has come
into the arena with a strong article
against giving the power to the Inter-
State Commerce Commission to regu-
late Interstate rates, and his opinion
to this office, not only through regu-
lar channels, but through the railroad
literary bureau that seems to be work.
ing nights and Sundays in order to
make sentiment against the passage
of the Townsend bill, and for
some such humbug of legislation as
Foraker or Elkins desire passed in or
der to say that something has been
done, but that will continue to permit
the railroads to charge any rates they
please.
Mr.. Olney's argument is that rail-
road regulation by State and inter-
State Commissions would be difficult
under our dual form of government
and the contest to see which would
give the lowest rates would result in
injustice to the railroads. Mr.. Olney
makes no mention of the fact that
the State and Federal courts have
time and again held that no power
could reduce rates to such a point as
dend upon the actual money invested
I'm the railroads. That is complete an
swer to the fear that railroads will be
wronged. In the case of State VS..
Ames in the 169th L. S. Reports. the
rule is laid down guaranteeing TO
railroad the right to earn dividends
upon it's investment and defining the
rights of the shippers and consumers,
particularly forbidding the imposition
of sufficient charges to pay dividend
the court says:
"A railroad is public highway, and
none the less so because constructed
and maintained through the agency Of
a corporation deriving its existence
and powers from the State. Such
corporation was created for public
purposes. 1t performs a function of
the state. It's authority to exercise
the right of eminent domain and to
charge tolls was given primarily for
the benefit of the public. If
railroad company has bonded its prop
erty for an amount that exceeds it's
fair value, or if its capitalization is
largely fictitious. il may not impose
upon the public the burden of such
rates as may be required for the pur-
pose of realizing profits upon such ex-
cessivc valuation or fictitious capital
iZatiOn. A corporation maintain
ing public highway, although it owns
the property it employs for accom-
plishing public objects, must be held
to have accepted its rights, privileges
and franchises subject to the condition
that the government creating it, or
the government within whose limits
it conducts it's business, may by legis-
lation protect the people against ul-
reasonable charges for the services
rendered by 4 IS The basis of all
calculations as to the reaSonableness
of rates to be charged by a corpora
ton, maintaining highway under
Legislative sanction, must be the fair
value OF the property being used by it
for the convenience of the public"
1t is because of that decision, espe-
cially these words: 1T may not i'm
pose upon the public the burden of
such rates as may be required for the
purpose of realizing profits upon such
excessive valuation or fictitious capt.
talization," that the railroads are
moving heaven and earth to defeat
any honest bill giving the Interstate
Commerce Commission power to fix
rates. They know they have fixed
rates high enough to pay dividends
upon oceans OF watered stock and
they will exhaust every resource at
their command to keen that mower IT