The herald and news. [volume] (Newberry S.C.) 1903-1937, 1908-01-17
The South's Attitude Toward The
Railroads.
Baltimore Sun.

Railroads.
Baltimore Sun.
It may be true, as our esteemed
contemporary, the New York Press
asserts, in reply to the suggestion
thai state regulation Of rates has
eaten up the Seaboard Air Lines re-
venues. that "tnere has not been
enough of enforcement Of lower
charges to affect the company's rev.
enue." 1t may be conceded that the
reduced rates have been effective for
only a few months and that the di-
minution of the company's receipts
from tnis cause alone did not hasten
the receivership. But there are other
facts and considerations which can
not be ignored in a candid and thor
.ough discussion Of the laws enacted
by southern legislatures for the regu-
lation of freight and passenger rates.
The Sun advocated just and reason
able regulation by congress Of rail-
roads engaged in interstate commerce,
with ample safeguards for protection
Of the public of the railroads. The
law enacted by congress. known as
the Hepburn act, increases the power
of the interstate commerce commls-
sion, enables the commission to sub
,stitute a rate which it considers fair
and reasonable for an excessive rate,
and gives the railroads the right OF
appeal to the federal courts from
the decision Of the commission.
The right Of the several states to
REGULATE railroad rates within taeir
boundaries is not questioned. Of
course. there can be no regulation
that is confiscatory. But a prlncl-
pie is involved in the regulation
which touches the welfare of the pub
lie as deeply as it does that of the
railroads. We do not know Of any
other section Of the United States
more dependent for development up
on the railroads than the southern
states. These states have enormous
natural rsources, which cannot be de-
.veloped properly without the assist
:ance Of outside capital. Much Of the
capital which investors in other sta
tes have placed in the south IS IL
vested in railroad properties. These
Investments were made at time
when public opinion in the south was
bitterly hostile to the railroads, when
regulation was not a political issue
in every township and county IN
which the politicians could make it
a "burnipg question. l." 1t is not de-
MED that the railroad management
was frequently tactless. and often ar
bitrary. It is recognized that the
people Of some Of the southern STA
tes had a just grievance at times IN
respect to determinations. They had
the right to redress these grievances
and to demand uniformly just and
equitable treatment. But it is al open
question whether the politicians did
not induce the people to apply a re-
medv which may be injurious to the
material interests Of the south as
well as to the railroads.
Capital will not promote railroad
enterprises or any other undeftak-
iags unless it has reasonable assur-
anee of = fair return on its invest
ment. No business man in the south
would invest his funds in a project
which was subject every two years,
or whenever the state legislatures
meet, to regulation which might stop
short only Of confscation. In seal
ins down the rates which railroads
in the south may charge FOR hauling
freight and Transporting passengers
southern legislatures may have am
pie warrant in the law. That IS a
.,-t;o, eor +ba A;ohncf eOrrt IN the