The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-08-20

lyyeGCHIIlcA SuCIl u SpcNiVu'' q y
created strong public opinion IN
favor OF radicai remedy against all
dishonest corporate practices, and ileid
VII. TIC hands q 'A0s' '''p''''"s '''
The seconi GROUND az opposition was
mat a tribunal like Tic commission was
utterly unabie to rs rates-that me
liking of rates was such dl,hct y,
matter, that only TIL. expert trul'lc
managers OF tatlroadf were competent
Tor the work that each rate was SO
: connected with every utbcr that 1t was
Impossible for body OF Iaymen t2
reach safe and Just conclusion in ra-
speot to an. one rate. without Great
Ing hopeless cpnfIion The argument
proved too MUGS. IL the commission
toEld nos - rats, tnen neither IT nos
court cot,,l 5afe.y determine Wletn'r
rate ,v.ls an c;isonaJle, for exactly
Tho same Export knowledge wac neeand
to aay tluIt II rate was tilreasonaSlc
al tn say Whit N'.ts maximum rsii-
Boii;,tle rate
The third and final objection was
that the law was Invalid. In that Con-
gress was thereby delegating It's legis-
lative powerfto another body, and was
violating tile general constitutional
rule that s5delegatei power cannot be
delegated. The rule has an exception
There may be delegation of legislative
power where the purpose in the original
ronferring of the power can be SUB
served only by its delegation to an
agent 1t is admitted that the Consti-
tuition gives Congress the power to TX
rates Obviously however, 1t is impos-
sible for Congress as body TO spend
the time aud labor to do so If the
power is to be exercised at all. praeti-
cally5itaAn be done only through a
tribunal eF7an agency like that OF the
Interstate Commerce Commission.
Fnyors imprisonment Feature.
1t is well understood that the Elkins
bill was passed without opposition by,
and with the full consent Of the rail-
roads and that the chief reason for
this was the elimination of the peni-
Tertiary penalty for unjust discrimina-
lions. The abolition of imprisonment.
rs a possible penalty, was unfortu-
nate. Experience has shown that
mere fine is generally not enough to
deter corporation from violation of
the law. because 1t then becomes
matter of mere business speculation.
In the rate bill Congress amended the
Elkins bill and restored imprisonment
rs part of the punishment for secret
rebates.
If the rate bill was likely to be a
failure and TO accomplish nothing IN
the regulation of their business, tue
a,,ery naturally arises why did the
railroads spend so much money and SO
great effort to defeat it? Why was IL.
If 1t had no effect that in the IN
tcrval between the time of it's passage
ano its going into effect, there were
fled with the Interstate Commrce Con-.
mission, more notices of reduced rates
81 the railroads than ever had been
he'd in the previous twenty years of
lhe life of the interstate commerce
law?
1T is true that later on many rates
were properly raised by the railways
because of an increase in wages and
the other cost of maintenance; but /
only cite the prompt action of the
railways on the passage of the bin
as a recognition by them of the inn
portance of the measure and the in
creased power of the commission.
There can be no judicial appeal in
the nature of a complete review on
the merits from the commission 10
the Supreme Court or to the Ctrcu!t
Court of the United States. for the
commission is no: a court OF first in
staRce. but only a mere administra-
tive tribunal The only power n Fed
s,al court could validly exercise would
be to decide first whether the ad
r,tnistrative tribunal had followed cor
rectly the limitations upon its course
Of action imposed by the act OF Con-
gress creating, IL. and second, whether
lts order taken as an authorized eN-
sression of the legislative power de-
srived the railroad company of its
tight, under the fourteenth amendment.
- derive a fair profit from the use OF
rs property Whether the Fsderai
sohrts were expressly given this power
In the law or not they would nave lad
It under their general Jurisdiction.
Amendments to Inv Needed.
The rate law does not so far enough.
Z The practice under 1t has already dis
closed the necessity for new amend
ments, and will doubtless suggest more.
The classification of merchandise for
transportation is a most important
matter in rate-fxing, for by n trans
Ter from one class to another the rate
Is changed and may work injustice.
Recent revelatieG have. emphasized the
pernicious effect .ef the so-called over
capitalization of railroads, which aids
Inscriptions stock manipulators in
!isposing OF railway securities at un-
;easonably high prices to innocent buy
IFS. MS eSll NOuiu Hpl Oh llStli JUS
tify Federal restraint or control, be-
PAUSE such stocks and bonds are usu-
,lly issued under state charters. 1,
lailroad company engaged in inter,
)tate commerce should not be permit
ied. therefore TO issue stock or bonds
Ind put them on sale in the market
except after certificate by the Inter.
ttate Commences Commission that the
securities are Issued with the apnrova
VI the commission for a Legitimate
railroad purpose
A much-psed means OF eliminating
competition among Interstate line!
terying the same territory is the ac
QUESTION hy8one company of the stool
IN anotherftand the election of direc
lors TO represent that stock. The evi
sught further to be directly restraine,
by making il unlawful for an inter
state railway 10 acquire stock in
competing line.
The contention ON behalf of the rail
roads, already noticed, that such su
oervision as the rate bill and thes
suggested amendments afford, is so
eialistic and tends to government own
ership. Is utterly without basis. Ell
Recent regulation is the very antidot
and preventive of socialism and gov
I srnment ownership. They have, man
VI them, hamelessiy violated the trus
obligation they have been under TO Il,