Courier Democrat. (Langdon, N.D.) 1891-1920, 1906-03-22
RAILROAD LEGISLATION
The Real Issue Not Yet Touched
by Congress.
THE WATBRED STOCK QUESTION

Rates Must Be Based on the Actual
valuc of the Propcrty-Thnt Reform
Will BE the Future Work of the DE-
Right Direction.
An interesting question was settled
by Senator Philander Knox when he
was President Roosevelt's attorney
general and declared that the admins
tration would not run amuck'' against
the railroads. The fact that no other
suit has been prosecuted since the de-
cision against the Northern Pacific and
Great Northern, although apparently
Rll the other great railroad combina-
ions are equally guilty, shows that Mr..
Knox knew what he was talking about.
for since that time the department of
Justice has been silent as Il clam on
railroad mergers. Now, it is we'll known
that the dissolution Of the Northern
Securities corporation by virtue OF the
activity Of Mr.. Knox, spurred on by
President Roosevelt, has brought no re.
lief to the people doing business in the
territory occupied by the Northern Pa
clfc and Great Northern railroads.
Those corporations still charge "all the
traffic will BEAR and are making such
great profits that the stock of both rail-
roads is quoted at enormous premiums
Of far more than double the price than
would indicate reasonable rates.
There is today nc such thing as real
competition in the railroad business,
and there can be none in the future
unless the six or seven railroad kings
that virtually control all the great COM
blnations should for a time fall out
about a division of the spoils. No de-
cision Of the supreme court or any 9th
er political action can r%ecreate COM
petition. 1t is a thing of the past.
The Democrats foresaw this and 50 de-
clared in their national and state plat
forms for national regulation of rail
road rates, and their representatives in
congress voted solidly for such ~restric-
lions as would protect the public from
unreasonable rates. The Republican
party platform was silent on regulat-
ing the railroads, although under pop
ular pressure a majority of the Repub-
licans in the last congress voted with
the Democrats, but the Republican ma
jority of the senate refused to consid-
| er the bill.
Since that time President Roosevelt
has decided to break the compact that
Mr.. Knox reported and is running
amuck again in a more direct line for
the goal that all reformers must strive
for to correct the unreasonable charges
Of the railroad combination. The peo-
pie, however, must not expect any i'm
mediate relief from the railroad bill
just passed by the house of representa-
tives ever If it is not greatly modified
by the senate, but it is a step in the
right direction. Eventually the law
will have to be strengthened so that it
can be determined what percentage Of
the capital stock and bonds shall be
considered as the real investment Of
capital upon which the people must
pay reasonable interest. That must
be the groundwork for determining
what rates are reasonable, for it is
preposteroue to suppose that the people
Of the United States Will ever be sat
isfed to pay interest upon fictitious
the real amount invested. All the in
terstate railroads will have to be APP
praised at their real value, as real and
personal property is valued by the tax
assessors OF the states. and then the
rates be so adjusted as to pay rea-
sonable interest on the actual value,
All the subsidiary companies that con-
troll the terminals and other appliances
that officials Of the railroads are gen
orally interested in and that receive
enormous compensation on the amount
invested will have to be investigated
and their actual worth discovered.
That must be the work Of the De
mocracy, which experience shows is 81
ways first and foremost in reform leg
islation. The Republican leaders will
tag along behind, Is they have in the
present effort to initiate legislation for
| reasonable rates. TO talk Of public
ownership before the water has been
| squeezed out Of the stocks and bonds of
all the railroad corporations is to de-
ceive the people Of the real issue at
stake. To attempt to purchase the
railroads at their own appraiscment or
the value placed on their stocks and
bonds in Wall street would be to fasten
on the people Of the United States a
debt that would be irredeemable for
| ever.
Not With the People.
United States Senator Dryden of
New Jersey declares that he and Gov