New-York tribune., 1907-08-20


compared in importance Of operation and eIeGt &c.
to the rate bill The increase by the rate bill
in the powers OF the commission IN supervision,
investigation, rate fixing and effective order
making to prevent discrimination is great
Elaborate machinery for making 1t difhcult 10
violate the law without discovery ana for ols-
covering violations when they exist. and for af-
fording affirmative and mandatory relief in re-
ouiring railroads to furnish equal facilities to
all is found in the provisions Of the new rate
bill Criminal prosecutions Will continue TO pe
under the Elkins law, but as amended by the
new rate bill This is because the Elkfns law,
amended. contains the part OF the interstate
commerce legislation which prescribes the pun
ishment for violations of the law and so, IN
ordinary practice, comes into operation aIter
the violations have been discovered under the
other provisions of the rate bill
WHY FIGHT INEFFECTIVE BILL?
II the rate bill was likely TO be a failure and
to accomplish nothing in the regulation OF thelr
business. the query naturally arises why olo oe ei
railroads spend SO much money ana SO sreht
effort to defeat it? Why was II, II 1t had no
effect that in the interval between the time OF
its passage and its going into erect there were
filed with the Interstate Commerce COMMISSION
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 Ia"
II is true that later on many rates Were prop
erly raised by the railroads because OF an m
crease in wages and other cost OF maintenance;
hut / only cite the prompt action OF the ralI-
ways on the passage of the bill as a recognition
by them of the Importance OF the measure anu
the increased power of the commission
The rate law has not been in operation year,
and the beneficial results from its operations
though clear not readv to be presented IN
statistical array. Moreover, the chlet Deleht
of the act is likely to be its influence IN ols-
couraging attempts to renew the old abuses
and such benefits do not appear in statistlcs.
The immediate effect Of the act has certainly
been TO compel railroads to regard the collilIs his
sion now as the important tribunal whose views
they must follow They are manHesting every
outward disposition strictly to comply Wlth III Ihe
Ia, nv
time has gone by in which the action or the
commission can be ignored or laughed at Inc
commission itself has taken up its duties VIII WIZ
renewed energy has proceeded. without await
ing the intervention Of the railroads or tne
filing OF complaints, to construe the act by ad-
TIlinistrative rulings, in order TO assist the raj
roads IN complying with the law. with the
large powers for correcting evils Whlch the
commission has may reasonably expect
q marked improvement in the conduct OF the
railways Of the country.
ATTITUDE TOWARD THE RATE BILL
The passage of the bill was taken the country
over, and properly taken. as a most importanI
step toward the suppression OF abuses Whlch
had grown I'D in a period of tolerant pros
perity. It was thought TO be an effective cure
OF the arterial system OF the country which had
become poisoned by dishonesty. injustice ana
fraud 1t was great soace TO the coIlsoLeio sIs -
Of the country outraged by recent revelations OF
railway and trust management Passed at tIo
instance of Mr.. Roosevelt, il stands as q rnonu-
ment TO the principle which he mas incessdhu!
maintained in speech and action. that the laws
must be so made that they can be enforced as
well against the sins OF the wealthy anu to
powerful against those Of the poor
ERROR OF BRYAN AS TO RATE BILL.
Mr. Bryan contends that the law was greatly
weakened in authorizing recognizing judicial
Intervention 10 restrain the orders or the com
mission. This criticism has not the slshtest
foundation There can he no judicial appeal IN
the nature of a complete review on the merits
from the commission TO the Supreme Court or
TO the Circuit Court Of the United states Tor tle
commission is not court OF first instance out
only q mere administrative tribunal The only
power a federal court could VaIdly exercise
would be to decide, first, whether the auIiII9
trative tribunal had followed correctly tne Hllii
tations upon its course of action imposed by the
act of Congress creating it, and second, Wnetler
IT'S order taken as an authorized expression OF
the legislative power deprived the railroad
cornpany of it's right, under the tOurteehtii
Amendment, to derive fair prolt from from 'e 9 uSe
OF its property Nhether t1e tedeIa, .- +l IeJy or
not. they would have had il under their genera
jurisdiction. If their power had not neen rec
ognized and purpose of Congress hao peeh - -
messed 10 prevent an appeal to the courts. tne
law would have been invalid The extent OF ,hG
judicial remedy could not be either ollli.iiiS ~
or enlarged by Congressional action. with que
regard 20 the validity Of the act Congress was
wise therefore. in not attempting TO deilhe Wndt
the should or should not do ana IN eIely ay
recognizing the right of the companies 10 aPpedi
to the federal courts to test the Va4iuity oi t1o
action of the commission NO VICTORY z"I WaI
gained by either the conservative OF tiie iaui0o'
party in this regard
IMPORTANCE OF COURTS.
Rv what 1 have said. however. 1 would not FOR
a moment be thought TO favor any legislation
which would exclude railroad companies OF any
one else from a 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 or our govern
meut indispensable in making good those guar
antees of life liberty, property and the pursuit
of bappinass given in the Constitution ana
ulaced there by the people themselves 10 curD
their own hasty action under stress Oh suuoSi 5
Impulse or with too little deliberation- Ihe ad-
rlinistration Of exact justice by courts without
fear or favor unmoved by the influence OK tle
wealthy or by the threats of the demagogue, Is
the highest ideal that a government OF the peo-
pie can strive for. and any means by Whlch
suitor however unpopular or poor. Is deprived
of ENJOYING this is to be condemned. 1t Is I'M
portant however, that appeals TO judicial rene
dies should be limited in such way tlat par
ties will not them merely TO delay ana 50
clog efficient and just executive or legislative
action
AMENDMENTS NEEDED D-CLASSIFTCATlON
The rate law does not go far enough. The
practice under it has already disclosed the ne
cessity for new amendments and will doubtless
suggest more. Such is the true method-the
empirical and tentative method-of securing
proper remedies for new evil The classlhca-
tior of merchandise for transportation Is d most
important matter in rate hxing. TOT py d Trans, rams
fer from one class TO another the rate Is cildhseu
and NAV work injustice With the power OF
rate fixing it would seem. should go the power
in the commission to CLASSIFY ana 70 pIeSSiioo
rules for uniform classification by all rallroads
TO PREVENT Observation-Disclosures
Recent revelations have emphasized the per-
ricious effect of the so-caled overCapitalization
of railroads which aids unscrupulous STOCK
rlanipulators In disposing OF railway securities
AT 11nreasonabIy high prices to innocent buyers
This evil would not of itself justify federal re-
straint or control because such stock ana DonuS
a no ,,er,aIIy issued under state charters. The
Dractice however, has tendency to divert the
money paid by the public for the stock ana
bonds which ought to be expended in lmprov-
az -.,rnd niInrrna rail