The Washington herald., 1907-08-20

such benefits do not appear in statistics.
The immediate effect Of the act has GER
tainly been to compel railroads TO regard
the commission now as the important
tribunal whose views they must follow
| They are manifesting every outward dis
| position strictly TO comply WIKI the law
and TO avoid prosecution or complaint.
The time has gone by in which the ac-
ton Of the commission can be Ignored
or laughed at. The commission itself
has taken uD its duties witt renewed en-
ergy, has proceeded, without awaiting
the Intervention of the railroads or the
| filing Of complaints, to construe the act
I by administrative rulings. IN order 10
assist the railroads In complying with the
law. With the large powers Tor cor
recting evils which the commission now
has, we may reasonably expect a marked
| improvement in the conduct of the rail-
ways of the country.
Country's Attitude Toward BILL
The passage of the bill was taken. the
country over. and properly taken, as a
most important step toward the suppress
sion Of abuses which had grown up in
period of tolerant prosperity 1t was
thought TO be an effective cure Of the
become poisoned by dishonesty, injustice,
and fraud It was a great solace 20 the
| conscience OF the country outraged by
| recent revelations OF railway and trust
management Passed at the instance Of
Mr.. Roosevelt, il stands as g monument
10 the principle which he has incessantly
maintained In speech and action, that
the laws must be 50 made that they can
be enforced as we'll against the sins OF
the wealthy and the powerful as against
those Of the poor.
Mr.. Bryan contends that the law was
greatly weakened I'm authorizing or rec
ognizing judicial Intervention 10 restrain
the orders Of the commission. This criti-
cism has not the slightest foundation.
There can be no judicial appeal in the
nature Of q complete review on the merits
from the commission 10 tho Supreme
Court or to ihe Circuit Court Of the
United States, for the commission Is not
court Of first Instance, but only mere
administrative tribunal The only power
a Federal court could validly exercise
would be TO decide first whether the ad-
minisJrative tribunal had followed cor
rectly the limitations upon its course Of
action imposed by the act OF Congress
creating 1t, ard. second, whether It's order,
taken as an authorized expression OF the
/ legislative power, deprived the railroad
company OF its right under the four
teenth amendment, TO derive a fair profit
| from the use of its property.
Whether the Federal courts We're -eX-
pressly given this power ln the law or not
they would have had it under their gen
eral jurisdiction. II their power had not
been recognized and a purpose Of Con-
gress had been expressed To prevent an
appeal 10 the courts, the law would have
I been invalid The extent OF the judicial
remedy could not be either diminished
or enlarged by Congressional action. with
due regard to the validity of the act
| Congress was wise. therefore. in not at
tempting TO define what the court should
or should not do and IN merely recogniz-
ing the right of the companies 10 appeal
20 the Federal courts TO test the validity
OF the action of this commission. No vic
tory was gained by either the conserva-
tive or the radical party in this regard.
Ali Have Recourse ia Courts.
BY what I have said. however. / would
not for moment be thought 20 favor any
legislation which would exclude railroad
companies or any one else from "a re-
course 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 government Indispensable in max
ing good those guarantees Of life, liberty
/ property and the pursuit Of happiness
given in the Constitution and placed there
by the people themselves to curb their
OWE hasty action under stress OF sudden
impulse or with TOO little deHberaton.
The administration Of exact justice by
courts without fear or favor. unmoved by
/ the influence OF the wealthy or bv the
/ threats Of the demagogue, is the highest
1 ideal that a government Of the people
can strive for, and any means by which
( a suitor. however unpopular or DOOR is
/ deprived OF enjoying this is "a be con-
( demned. IL is important. however. that
appeals to judicial remedies should be
/ limited In such a way that parties viii
not use them merely 20 delay and so clog
efficient and just executive or legislative
action.
The rate law does not go far enough.
/ The practice under it has already dis
/ closed the necessity for new amendments
and viii doubtless suggest more. Such
is the true method-the empirical and
tentative method-of securing proper rem
edieS for a new evil. The classification of
merchandise for transportation is a most
important matter in rate fixing for by
transfer from one class 10 another, the
rate is changed and may work injustice.
With the power Of rate fixing il would
seem, should 80 the power in the com
mission TO classify and 10 prescribe rules
Tor uniform classification by all railroads
Recent revelations have emphasized
! the perniCioUs effect Of the so-caiIed
overcapitalization of railroads which aids
unscrupulOus stock manipulatOrs in dis
posing Of railway securities at unrea-
sOuably high prices to innocent buyers.
This evil would not of itself justify Fed
eral restraint or control because such
stock and bonds are usually issued ua-
der State charters.
The practice. however, has a tendency
TO divert the money paid by the public for
the stock and bonds which ought to be ex-
pended in improving the road bed. track.
and equipment of railways into the pock-
cts of the dishonest manipulatOrs. and
thus to pile such an Improbable debt
upon a railway as 10 make bankruptcy
and a receivership probable in the first
business stringency. This result, IN an
interstate railway, necessarily interferes
with. and burdens. interstate commerce.
and justifes the exercise Of the regula-
tive power of Congress to stop the prac-
tice.
stocks sIust Not BE Inflated.
A railroad company engaged in inter
state commerce should not be permitted.
therefore. to issue stocks or bonds and
put them on sale in the market except
after certificate by the Interstate Com
merce Commission that the securities
are issued with the approval of the com
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