The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1907-08-22

measure, but its scope is so narrow in
respect Of the regulation of railways
that it cannot be compared in import
ance of operation and effect to the rate
bill. The increase by the rate bill in
the powers Of the commission in super
vision, investigation, ratefixing and ef-
fective order-making to prevent dis
elimination is great. Elaborate ma
chinery for making it difficult to vio-
late the law without discovery and for
discovering violations when they exist,
and for affording Affirmative and man.
datOry relief in requiring railroads to
furnish equal facilities to all, is found
in the provisions of the new rate bill.
Criminal prosecutions will continue to
be under the Elkins law, but as amend
ed by the new rate bill. This is be-
cause the Elkins law, as amended, con-
tains the part of the interstate COM
merce legislation which prescribes the
| punishment for violations of the law
and so, in ordinary practice, comes
into operation after the violations have
been discovered under the other pro-
visions of the rate bill.
Why Such Railroad opposltion7
IF the rate bill was likely to be a
failure and to accomplish nothing in
| the regulation of their business, the
query naturally arises why did the
railroads spend so much money and so
great effort to defeat it? Why was it,
If it had no effect, that in the interval
between the time of its passage and
| its going into effect, there were filed
| with the interstate commerce commits
sion, more notices of reduced rates
by the railroads than ever had been
filed in the previous twenty years OF
the life of the interstate commerce
law?
Attitude Of Country Toward Rate Bill.
"The passage of the bill was taken,
the country over, and properly taken,
as q most important step toward the
suppression of abuses which had
grown up in period of tolerant pros
perity. 1t was thought to be an effec-
tive cure of the arterial system of the
country which had become poisoned by
dishonesty, injustice and fraud. 1t was
great Solace to the conscience of
the country outraged by recent revela-
tions of railway and trust manage
ment Passed at the instance of Mr.
Roosevelt, it stands as monument to
the principle which he has incessant-
ly maintained in speech and action,
kI,sk ha lntrF IN do I,nk
they can be enforced as we'll against
the sins of the wealthy and the power
full as against those of the poor.
Error Of Mr.. Bryan.
"Mr. Bryan contends that the law
was greatly weakened in authorizing,
or recognizing judicial Intervention to
restrain the orders of the commission.
The criticism has not the slightest
foundation. There can be no judicial
appeal in the nature of complete re-
view on the merits from the commits
sion to the supreme court or to the
circuit court of the United States, for
the commission is not court of first
instance, but only mere administra-
tive tribunal
Amendments to Rate Bill Needed.
THE rate law does not go far enough.
The practice under it has already dis
closed the necessity for new amend
ments and will doubtless suggest
more. Such is the true method-the
empirical and tentative method-Of
securing proper remedies for new
evil The classification of merchan-
disc for transportation Is a most i'm
portant matter in rate fixing for by |
a transfer from one class to another, |
the rate is changed and may work in |
Justice. With the power of rate fixing, |
1t would SEEM should go the power in |
the commission to classify and to pre- |
scribe rules for uniform classification |
by all railroads.
Recent revelations have emphasized |
he pernicious effect of the socalled |
0ver-CapitalizatiOn of railroads which |
aids INSCRIPTIONS stock manipulatOrs
in disposing of railway securities at
buyers. This evil would not of itself
Justify federal restraint or control, be-
cause such stock and bonds are usual
ly issued under state charters. The
practice, however, has a tendency to
divert the money paid by the public
Tor the stocks and bonds which ought
10 be expended in improving the road
bed, track and equipment Of railways
into the pockets of the dishonest
manipulatOrs, and thus to pile such an
Improbable debt upon a railway as
to make bankruptcy and a receiver
ship probable in the first business
This result in an inter-
state railway necessarily interferes
with, and burdens, interstate CON-
merce, and justifies the exercise Of
the regulative power of congress to
stop the practice. A railroad company
Engaged In interstate commerce
should not be permitted, therefore, to
issue stock or bonds and put them ON
sale in the market except after a GER
tifiCate by Interstate commerce COM
mission that the securities are issued
with the approval of the commission
for legitimate railroad purpose. The
railroads that are honestly conducted
would accept the certificate of the
commission as valuable one In the
ui~rkets Of the world, and only rail-
way stock manpulatOrs who look to
the floating Of watered securities as
their best source of profit would have
reason to complain.
"A much used means Of eliminating
competition among interstate lines
serving the same territory is the ac-
QUESTION by one company OF the stock
In another and the election of direc-
tors to represent that stock. This pro-
rRSC lS kanilitntnA h,r Ahn ,,nnontrnlhoa |