The Minneapolis journal., 1905-05-06
.MOODY'S OPINION
SHIFTS RATE FIGHT
Railroads Will Adopt New Lines
of Assault on Esch-Town-
send Bill.
(synopsis of Moody decision on page "
BY w. w. Jermane.


Washington, May 6.--Attorney Gen
today, has cleared up the atmosphere
and made convincing presentation of
the arguments in favor of the conten-
tion that congress has the power to fix
railroad rates. These arguments are
based upon the constitution and deci-
slons Of the supreme court, and will
convince the country that congress may,
bill or any other bill which seeks to
determine what rates shall be.
This. statement from the attorney
general has come at timely moment,
for many railroad officials have ap-
peared before the senate committee on
Interstate commerce since April II, say
ing that if the government were to
follow. Mr.. Moody shows that these
statements are unwarranted, for any
rate fixed by a government commission
would be subject to review by the
courts, and if an established rate were
found to be confscatory, it would be
unconstitutional.
Law Very Clear.
Mr.. Moody finds that the law is very
clear The fixing Of rates is legisla-
tive act, and the decision as to the
justice Of such rates is judicial act.
Authority to do the former may by
congress be lodged with a commission
acting for it. Authority to do the lat
ter is lodged by the constitution with
the courts. This power of the courts
congress cannot abridge or take away.
Railroad property would, therefore, be
protected from confscation even under
the operations of the Townsend
1t is admitted today by representa-
tives of both sides of the controversy
stated the situation as it really exists,
and, this being the case, the opponents
of the Esch-Townsend. proposition will
hereafter refrain from attacking it on
the grounds Of it's constitutionality and
will marshal their forces for another
line of assault. That line will prob
ably be an effort to show that it would
be against public policy for congress tc
exercise the authority which Mr.. Moo
| dy says it possesses.
Meyers Weight Against Bill.
In support of that contention the
testimony Of Professor, Meyer of Chi
cago university will be drawn upo1
is one Of the worlds experts on The
question of, freight traffic, having de
voted practically all of his life to it
He has written authoritative books OF
the question, and his familiarity will
all its phases makes him easily the mos
interesting as we'll as the most impor
tant witness thus far heard His de
! tailed statement of the highly unsatis
factory conditions prevailing in Ger
1 many, where the government regulate
rates, and in France, where simila
I custom prevails, makes in the aggre
1 gate an argument against the Escf
| Townsend bill which It will be exceed
| ingly difficult to overcome.
The German system has been in or
| Grafton since 1873, and it has wrough
i industrial and commercial paralysis i
some parts Of the empire and arreste
developments in all parts save alon
the waterways. s +
What Congress Will Do.
The time has about come for pre-
diction as to what congress will d
next winter. It is becoming very ar
. parent that if it passes any law,
will be one falling considerably sho1
Of the Esch-Townsend proposition. Pro
fessor Meyers testimony has furnishe
at least twenty senator's, whose lear
ings have naturally been toward th
railroads, with just the argument the
want. Falling back upon his test
mony, they will feel justified in resis
ing this legislation to the bitter en-,
which means that the legislation wi
not pass.