New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-28

compelled 10 depend upon The corporation Of
lhe private investors. Private investors. how
eve-. win not invest unless they have assurance
Of a return"
Mr.. Shepard then presented the following
summary of the arguments Of counsel repre-
sentins important steam railroads;
Those Entrusted with the management Of rail-
necessary for the protection OF me pu6llc l.e
ss1Sie utiifies such control however. should not
be drastic 70 hamper freedom OF action or me
business Judgment Of competent men,, which free
not only 10 successful administration bur 10 saus-
The bin now pending before the Legislature goes
1luch lnrther IMAM any OtnsE al ,,irsS
this end has ever gone and further tan IS REQUIRES
interest. Unless amended in the manner herein.
after pointed cut enactment OF the DlH must Dc
The aTst purpose sought Is adTi INSTR t -. or
unfair rates. secret rebates. improper issues q Sc
curities ana other corporate abuses 10 ih;st pop
pose the steam railroad companies are NOT oo Oh
posed; the contrary, they approve IL a SecoaS
asser II railroad franchises. the acquisition Of
new properties. the organization OF new OF SUD
q railroad Companies as between themselves; and
20 TINS there can be no objection y lhe ~
Ia discriminate against the investment OF new cap
itaI IN railroad construction or for extension or
construction Of branches A third purpose Is the
exercise, IN an orderly ana systematic May., OF
operation q the railroads. and to This there IS no
~
out o. She hands OF those who own me pt9peTt1gs
and IL the powers OF their ofneers ana directors
be not transferred 10 the commissions no" pro-
Against the accomplishment Of these underlying
purposes no protest Is made. but it is respectfully
Submitted that. 70 these purposes there should not
the tTansfs under the gnise Of public regulation,
Of practical administrator Og those properties TO
q political control In considering iegslstion q
,s s ~ tSs sfean rairOads run into other States
= whose authOriies they are also , SUBJECT ana
siction az The federal Interstate Commerce Com
znission. But neither the Interstate Commerce law
IS ssrlctiTeiy as do the provisions Of this b II
g g not TO be dangerous as well as revolutionary
SALARIES OF $1,000 SUGGESTED.
g1rst-TO give the commissioners, having powers
30 large and far reaching. the kind OF assured
and q secure 10 their membership not only an
s-S6Ity ~ 5 PS ~ erjs1ceS at5li1 n
e no commonplace or routine work which they
sssn Who aTe competent 10 perform it and also
willing to assume II TO the exclusion OF every
within the city Of New York ought 10 be paid
p-e S 6oart ' 5SSge within thst cy Whose
salary is sl7.50 are not more laboEious or din
the rest Of the state might we'll be as large az
s,asis Ss eLs aR S13 }sosss 1S ought
not . b removable AZ the pleasure q the Coy
Sy Inconsistent 5 ; E gs s IN, SCOPE 9s nna
sopeTs members of the coyernors civil stan ana
IA the long run. therefore. political officers rep
s ts o tSs Ss P0sS Sooner 0s t or @ and
= certainty. this would be injur1ous ana even
versely the Politics Of the state would thus MUIR
railroad administration. The new commissioners
shouie lie judges be assured Of t1sir Pisces SO
TIER agss ona the question whether Ieey no 90
ssEeS b3 ne SsovsrneT a8d openV ana properly
heard By the Senate II It be said that this might
Detsnt man OF a man whose character had be-
- -tS fess' eaTssiorers Il Is Better 70 run
that risk than 70 Impair Independence
opiSin 81 them should alike have the opportunity
for judicial review OF the orders Of the commission
number OF cases, inrruats the unchecked discre-
Won g Sve i aS s q oTsTs
results. The property subject to such orders con:
the state. Il IS obvious and elementary justice
ssS 70 ne eTte5 I9o[ Ig oonIr9 e5 even o pcs Sc
\ the hands OF its owners. they should have the
the owners Of al Other propeTty NOR should he
~ mistakes 81 he tTi5u4al o. frst resort Be inn
ited more thar the protection of other property is
sUEisdicton The reasona bsness and justice Of the
orders should Be likewise dealt wi;h BY the appel
late courts as they deal with the reasonabieness
and justice OF orders made by courts undsr them
purpo:e sRvoiSe only the Teia5iveiy small deay n
eident 70 proper hearing. and every sueh hearing
viii have preference before the court Nor is any
efasr 70 p suspended Upon an appeal unless the
sion Is essential % the administration % justice.
INCONSISTENT WITH EFFICIENCY"
Third-The control Of rates or the prevention cf
DETERMINATIONS Is objectionable II the control
ana ast 81 Similarly there Would ' be No.
objection 70 investing the commission with jurisdic-
stocks OF other corporations. But the bill goes
oieers and directors Chosen by tie owners Of the
railroads Of their administrative control in
mission 70 determine for the owners Of railroad
how many employees they shall have, ho% their
- y
efned and supervised. and perhaps the wages which
they shall receive. IN some cases the commission
may issue orders to them. The commission is 20
determne what shall be the equipment. what the
ohedules Waat the regulations for the receipt and
handling OF freight ana the like While the power
g thus given 70 the commission 10 compel the
owners OF the railroads peremrtorily 20 make
deprived Of the right TO deterfaine the character
and amount Of their securities by the issue OF
which they can alone raise the capital thus made
necessary. This e. neither justice nor common
Or ability. Is competent 20 take the place OF the
large body % highly trained and experienced prac-
possl q me bin il these respects is absolutely in
CONSISTENT with either sllc3e2cy or saIetg Ana
the ultimate power OF administration 10 the com:
officers ~ the railroads from the responsibilities
which go with that adnaini sa11 ., ,-os
ana diFeetors Of the railroads the administrative
control Of their properties, tle result OF the bill,
g enacted. would be in effect a destruction oe ex-
- et s control ana sdnnlsirstlon When that
srrt legislative act transferred ulLlInGle9y
slG n1ly @ some one y 20 Way tepEeseiHLg Ins
% their property. But this is not all. perhaps
even most OF the case.
gt Is safe TO predict that Il confidence in public
order and good faith be preserved the increase Of
railroad facilities in The future win be far greater
than q has been in the past. The enormous con-
Fest0n OF tFaE1lo at this very time makes such an
increase almost imperative il the public IS to be
ael sesved and IL the OF the railroad prop
critics are % reap the fun benefits OF their invest
Snents. Such improvements can be made only by
contribution OF new capta-that is TO say, OF cap
ttal net now controlled by the railroad companies.
Those who have such capital to invest who con-
trol its investment are private persons whom no