The Washington herald., 1907-07-18
Politics in Rate Regulation.

FOiltlSS IN haFe Regulation.
Some months ago the Wisconsin rail-
/ road commission, in pursuance Of the
/ powers conferred on il by law. reduced
/ passenger fares on certain intrastate rail
roads TO 2l9 cents a mile. This action was
/ taken after an exhaustive inquiry into all
the facts bearing on the reduction, and
/ was supported by a well-considered opin-
ion, notable for its fair and judicial tenn
per. The new rates fixed by the com
/ mission were at once accepted by the
railroads and put into effect without ques-
! ton. Settlement of the rate problem in
/ so judicial a fashion, however did not
suit the politicians Of the State. who saw
an opportunity 10 curry favor with their
! constituents by taking up arms against
/ the railroads after the manner which has
/ been pursued in other States afflicted with
| the 2-cent mania They rushed a 2-cent-
| fare bill through the legislature without
regard TO its merits or its effect thereby
| overturning the rate fixed by the commits
! sion after months Of painstaklng deliber-
/ alton and investigation.
Gov. Davidson. lacking the independ-
ence and clearness of Judgment shown
by Gov. Hughes. Of New York. In sim
lar emergency, has just signed the bill,
taking as the Milwaukee Sentinel says,
a political and not a judicial view of its
merits. According 10 that paper. the mo-
tlves which led 10 the passage Of the bill
are Of a disgraceful order. It's supporters
expect not only 10 make votes by reducing
fares, but also TO strike a blow at the
commission, which has not proved the
subseryient tool in their hands that they
had hoped. The commission did not. fer
example respond TO the demand that it
reduce rates on the eve of a primary
election for political effect. Its members
Insisted on treating rate-making as a
purely business proposition. and declined
to deal with il as a political matter
THAT is how such questions should be
determined" Gays the Sentinel. "and not
/ by the haphaZard guess Of legislators act
ing without any information, knowledge.
or investigation whatever" But the pol
iticians take the contrary view. as they
did in New York and unfortunately.
Wisconsin cannot supply the country with
another Gov Hughes.
The action of the Wisconsin legislature
discloses the grave danger in govern
mental control Of corporations. which
even those who favor such regulation
cannot afford 10 ignore, because it is a
danger which must be guarded against
in every way possible. That danger is the
intrusion Of personal and partisan political
considerations into the business OF gov
eTnmentaI regulation. II this cannot be
aveTted. the whole scheme OF govern
mental regulation viii inevitably come 10
wreck on the reefs Of corruption or the
shoals Of financial disaster No railroad
can be conducted with efficiency and with
profit 10 investors If It's freight and pas
senger rates are made the football of pol
itics, and are determined by considera-
tons Of personal or party political for
tune, with fiagrant disregard Of the vital
considerations Of equity and justice Man
ifestly, it is useless to establish judicial
and administrative bodies. like the State
railroad commissions, for the purpose Of
regulating public utilities according TO
the principles Of equity and justice. II the
decisions Of those commissions may be
upset by the legislature for the pettiest
Of reasons The railroads may well COM
plain Of so unstable minded master as a
state government whose ruling authori-
ties are in perpetual conflict with each
other, either actually or potentially.
Democracy has an important lesson TO
learn In this matter Of corporate reguIa-
ton, as Gov Hughes intimated in his
veto message, a lesson that the people OF
Wisconsin would do well TO take 70 heart.
In dealing with these questions" said
the governor OF New York. democracy
must demonstrate its capacity 10 act upon
deli6eration and 10 deal justly" Unless
1t does, its attempt 10 regulate great
transportation and industrial enterprises
viii prove monumental failure.