Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-06-14
HEAFDON'CHANGE

The scope of supervision conferred al
the last session of Congress upon the in.
terstate commerce commission over the
street railways Of the District is confined
to the regulation Of schedules and of the
structural fitness of cars. The commits
sion is given power to determine how
many and how often and what sort Of car:
shall be run on any line.
Unlike similar grants in recent years o.
legislative power to commissions in some
states. notably in New York and Wiscon
son. Congress did not include within thu
range of this law any jurisdiction over the
finances Of the companies. In event any
additional power is needed, either to issue
stocks or bonds. 1t still would be neces
sary to go to Congress.
Therefore this new law Is one of linn
tied powers and retains what some NIGH
regard as the most essential of the pow
ers which could be vested in the supreme
authority.
1t is the second attempt on the part o.
Congress in this species of lawmaking
1t follows, at long interval. the law O
1896. by which authority was conferred
upon the Supreme Court Of the Distric
value of the property of the gas compan!
what increase in the capital stock would
be just and fair.
For long time the gas company dit
not avail itself of this opportunity to Sc
cure the much-wanted privilege of in
ereasing its capital stock Finally appli
cation was made TO the court. An inquir!
was made through the auditor OF the cour
and his finding approved.
The Court of Appeals. however, Sc
aside the action of the lower court on tn,
ground that the law was unconstitutional
Appeal has been taken to the Suprem,
Court of the United States, where it still
Is Hearing is expected some time befor,
the close of the current year.
However. that is the extent of the at
tempt on the part of Congress to delegat,
any Of its powers over local corporations
Inc operation of the present law, especial
ly in the light Of what seems to be tn,
modern tendency toward a commission
form OF government for corporations, will
be watched with considerable interest.
In the exercise of such powers as hav,
been granted to the interstate commerce,
commission 1t is pointed out there is
chance of both corporations and public
getting better acquainted with each other
1t may be expected that when the com
mission is asked by the citizens to compe
any road to increa Sc the number of car:
or to do anything in the way of changing
Its service that would involve additional
cost to the company. it would be neces
sary. tor intelligent action on the part O
the commission. to know something of tn,
financial condition of the company. II
this way, while the commission has no
power to regulate the issue or the amour
of the securities of the company, yet i
can be the medium of getting informatio,
about finances
In this connection it may be said tina
both street railway companies in this cit.
are looked upon as in a position to stant
a full and complete inquiry of this sort
That opinion is based upon the past rec
ords Of the companies.
In the case Of the Washington Railwa.
and Electric Company, the largest il
point of capitalization and of trackage.
has recently passed from the control of
voting trust into the hands of the stock
holders. That change has been made with
out disclosing anything in the manage
ment of the previous five years. which
did not serve to strengthen the faith an,
the belief Of the new directors in tn
present worth and the future of the prop
critics.
The confidence in the other company /
solidly based on its achievements in tn
way Of paying good returns to stockhold
ers and in a belief in it's honest and capa
Bile management.