Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-08-20


This criticism has not the slightest
foundation There can be no judicial
appeal in the nature of a complete
review on the merits from the COM
mission to the supreme court or to the
circuit court of the United States, for
the commission is not court of first
instance, but only a mere administra-
tive tribunal The only power fed
eral court could validly exercise would
be to decide first, whether the admin
lstrative tribunal had followed cor
rectly the limitations upon its course
of action imposed by the act of con-
gress creating it, and second, whether
its order taken as an Unauthorized ex-
preston of the legislative power de-
prived the railroad company of its
right, under the fourteenth amend
ment, to derive a fair profit from the
use of its property. Whether the fed
eral courts were expressly given this
power in the law or not, they would
have had it under their general iuris-
diction. If their power had not been
recognized and a purpose of congress
had been expressed to prevent an APP
peal to the courts, the law would have
been invalid.
Importance of Courts IN Unfolding
Constitutional Guarantees.
BY what I have said, however, Il
would not for a moment be thought to
favor any legislation which would ex-
clude railroad companies or any one
else from recourse to the courts to
protect them in their statutory and
constitutional rights. The courts and
especially the supreme court of the
! United States, are the part of our gov
ernment indispensable In making good
those guarantees of life, liberty, prop
erty and the pursuit of happiness
given in the constitution and placed
there by the people themselves to curb
their own hasty action under stress of
Sudden impulse or with too little de-
liberation. The administration of ex-
act justice by courts without fear or
favor, unmoved by the influence of
the wealthy or by the threats of the
demagogue, is the highest ideal that
a government of the people can strive
for, and any means by which a suitor,
however unpopular or poor. is de-
prived of enjoying this is to be con-
demned. 1t is important. however,
that appeals to judicial remedies
should be limited In such a way that
parties will not use them merely to
delay and 50 clog efficient and just ex-
ecutive or legislative action.
New Amendments to the Rate Bill
Needed-ClassifiCatl
The rate law does not go far enough
The practice under 1t has already dis
closed the necessity for new amend
ments and will doubtless suggest more.
Such Is the true method-the empiri-
cal and tentative method-of securing
proper remedies for a new evil. The
classification of merchandise for trans
portation Is most important matter
in rate-fiXng, for by transfer from
one class to another, the rate Is
changed and may work injustice.
With the power of ate-fiXing, Ii would
seem, should go the power in the COM
mission to classify and prescribe rules
for uniform classification by all rail-
roads.
Amendment Needed to Prevent
Over-CapitallZatlOn.
Recent revelations have emphasized
the pernicious effect Of the so-called
over capitalization Of railroads which
aids INSCRIPTIONS stock manipulators
| In dlsposing of railroad securities at
lunreasonably high pihes to innocent
buyers. This evil would not of itself
| justify federal restraint or control be-
cause such stock and bonds are us
ually Issued under state charters. The
practice. however, has the tendency to
divert the money paid by the public
| for the stock and bonds which ought
to be expended in improving the road
bed, track and equipment of railways
| into the pockets of the dishonest ma
nipulators and thus to pile such an
improbable debt upon a railway as to
make bankruptcy and a receivership
profitable I'm the first business strin-
| gency. This result in an Interstate
railway, necessarily interferes with.
a nd h.ts fnN az a Napn 4
justihes the exercise Of the regulatlve
power of congress to stop the practice.
A railroad company engaged In inter-
state commerce should not be permit
ted, therefore, to issue stock or bonds
and put them on sale ip the market
except after a certificate by the inter-
state commerce commission that the
securities are issued with the approval
of the commission for a legitimate
railroad purpose. The railroads that
are honestly conducted would accept
the certificate of the commission as al
valuable one In the markets of the
world, and only railway stock manipu-
lators who look to the floating OF wa
tered securities as their best source of
profit, would have reason to COM
plain.
Amendments Against Purchase of
Stock In Competing Lines and Against
Common Directors.
A much used means of eliminating
competition among interstate lines.
serving the same territory is the acqui-
sltiOn by one company of the stock In
another and the election of directors
to represent that stock. This process
Is facilitated by the uncontrolled
power to issue securities beyond the
needs of the company for its legiti-
mate business and would be curbed by
the restriction proposed. The evil
ought further to be directly restrained
by making It unlawful for an inter-
state railway to acquire stock In d
competing line. This Is a simpler rem
edy of meeting the evil than by re-
course to the antitrust law under the
Northern Securities case. In addition
TO this, competing lines should be pro-
hibited from having common directors
or officers.
Proposed Amendments Plainly
Constitutional.
These suggestions Of additional leg
lslation In respect to the supervision
and control of interstate railways have
been made by the Interstate commerce
commission and ] heartily concur In
them. They are plainly within the
federal jurisdiction under the inter-
state commerce clause. | do not think
that In order to accomplish a good
which the federal government with It's
greater resources and wider geograph-
lcal reach can bring about more
quickly and efficiently, the constltu-
tlonal limits upon federal action
should be expanded by doubtful con-
struction into a field which really be-
longs to the state But the right of
congress to take any action, not con-