Fitzgerald enterprise. (Fitzgerald, Ga.) 1895-1912, 1909-01-19


ions of this act were outlined in the Democrat
ic platform of 1906 and that the Republic n
platform Of the same date was silent upon the
problem. However, a Republican president
carried forward the ideas of the opposition
party in tie Hepburn bill. Mr.. Clementsd.i.
tinctly contendsv4hat the present law nee Is
amendment in three important particulars
first Of which is the granting of full power to
the interstate commerce commission to
prev any increase of rates
until they can be thoroughly investig T.
ed He points out that the railroads can, l.
der present practices increase rates much NJ re
readily than it is possible for any tribunal 70
investigate them, and that the granting OF lis
power to the commission will prevent Ire
parable injury in cases where the new rate is
too high, and is also of Importance to the COM
mon carrier that it may know that the rate it
collects it may keep, without the expensive
proceedings for reparation after the condemna-
tion of the rate exacted. He points out with
equal cearncss that competition is not to be
relied upon for just rates, and quotes in this
connection the views of President Milton IL.
Smith, formerly expressed, that a patron OF
the road who ~eemed a rate unreasonable had
the liberty Of walking, if the road would not
reduce it, Mr. Clements shows how helpless
the individual patron is against the corpora
tiOn exacting an unjust freight or passenger
rate, and that it is absolutely necessary for
the strong hand of the federal government,
through the interstate commerce clause of the
constitution, made effective by statute law,
to protect the public and the individual, to
force the transportation companies to recognize
their proper obligations and to distinguish
fairly between investments in private enter
prises as compared with those affected by
public interest This is so fair and so reason
able and so just that we cannot imagine how
any sane objection can be made to the pro
gram. 1t is the only guarantee against unjust
discrimination and against eXorbitant rates
which can sometimes effect the ruin of q bust
ness or of locality before they can be examin
ed by the commission.
The second point urged is that of granting
to the commission power to control capitaliza-
ton Mr. Clements illustrations from the
Hartman purchase of the stock of the Alton;
the purchase by the Atlantic Coast Line of a
controlling influence in the Louisville q Nash
vile, and from the purchase by the Northern
Pacific and Great Northern of the Burlington
line, a competing line of both, are illuminat
ing and instructive He shows that the vast
increase in bonded Indebtedness, through this
increased capitalization, did not go into the
increase of equipment or the extension of the
railroad lines, but is simply an additional bur-
den upon the public in the increased tax col
lected by the railroads in order to pay inter
est upon fictitious values.
1t is again worthy of note that besides these
two proposed amendments to the federal law,
namely: the power to prevent any increase in
rates before thorough examination is per-
mitted, and the power to control at least the
future capitalization of the companies, third
matter of far reachinS consequence is the de-
termination by the government of the real
value of railway properties Mr.. Clements
argues that this is absolutely necessary in the
interest of justice. It would tend to a more
uniform system Of taxation by states, and it
would help to solve the problem how far the
basis of rate making should rest upon watered
capitalization.
The righteousness and wisdom of just com
pensaton to the carriers themselves is involy-
ed in this problem, and the whole future of rail-
road building in this country with heincrease
equipment and the extension of lines which it's
marvellous growth demardS, must rest upon
such determination Of the real value of the
new properties.
The American people are just and in the
present state of public opinion, it is necessary