The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-07
RAILROADS SEEK
TO GUARD STOCK
Fight Over Hepburn Bill Is Di-
rected Toward Protecting
Watered Securities.
Special to The Journal.


Chicago, March IA Washington
special to the Chicago Tribune says:
On excellent authority it is stated
Il that the railroads are fighting now for
the protection Of their watered stock
and are not afraid of a law permitting
the Interstate commerce commission to
Tx rates, provided it bases its action
upon capital stock and not upon the ac-
/ tual cost of transportation.
Everybody has known the constitu-
ton guarantees to the railroads every
possible right to protect themselves
against confiscation of their property.
They would have the same right to go
into court and protest against the ac-
ton of the commission in fixing a rate
as they would to 60. into court to pro-
test against the action of the govern
ment requiring them to get off a mill
tary reservation.
Puzzled at Roads Action.
The Dolliver-Hepburn bill does not
In any way, either expressed or implied,
attack the constitutional right of the
railroads to protect their property
against confscation. For that reason
the people who are behind the move
ment for rate regulation, including, it
is declared, President Roosevelt himself,
have been at loss to understand why
the railroad companies were SO insist
ent in demanding an express provision
for an appeal to the courts against the
action of the commission.
According to present information, the
railroad managers are afraid to depend
upon their constitutional rights. They
wrte nto he bo %iTe bill dheS an Vaas
provision which will give United
States circuit court right to inquire
into the question, not as to whether the
particular freight rate is confiscatory
OF the actual property of the road, but
the commission, If put into effect, will
be sufficiently remunerative to do it's
Z, share in paying dividends upon the
stock OF that road, no matter how great
1t may be and no matter how much Wa
ter 1T may represent.
Remunerative Rates.
It is asserted on excellent authority
that the whole purpose Of the railroads
is to get into the rate bill as it is finally
passed specific section not only au-
thorizlng, but actually directing, the
circuit courts to see that the rate is
remunerative on a basis either of
the capital stock of road as it now
exists or as it may be increased in the
future.
There is vast amount Of difference
between a rate which is confscatory on
the actual value of railroad and one
which will pay dividends on watered
stock. If the railroads were forced to
depend upon their constitutional rights
the only question to be presented to the
courts would be whether the specified
rate confiscated the property of the
railroad.
You cannot confscate an IMAGINARY
thing, and the United States courts,
without any specific right of review in
the Dolliver bill, unquestionably would
be limited to the actual money value
of roads and money cost of the trans
pcrtation.
Presidents Attitude.
During a recent conversation between
PRESIDENT Roosevelt and number of
congressional visitors more or less in
terested in rate. legislation, the presi-
dent a:nnounced that he had an instinc-
tive dislike to the use of certain words
In the construction of the proposed rail
road law. He had noticed, he said with
smile, that all the great constitutional
lawyers were opposed to the railroad
rate bill in its essence. but that each
one of them ATTACKED its constitution
atty on totally different grounds Be-
cause these eminent lawyers disagreed,
and because he could not secure a
unanimous recommendation Favorable
to any particular form Of language
the president insisted he had a right
to view the rate bill as layman, and
that he would object to the use Of Ian
guage which seemed to be Intentionally
confused, which might have unusual
meanings attached to it by courts.