Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-11-08

OF congress VINO initiated the Interstate
commerce law of 1887, nor Of the mem
bers of congress- who have added the
amendments adopted since that. The
work has been experimental-part OF
it successful and a part Of it very IN
successful. Some injustice has been
done the railways, and much of the IN
Justice suffered by they people is not
yet repaired. Disregardipg minor
things, Just one great wrong has been
corrected. Discrimination between in
dividuals has substantially disappear
ed, and while other evil practices even
more important than such discrimina-
ton remain, the abolition OF the re-
bate and other forms Of discrimina~
ton IL q great reward for the IaborS
of nearly q quarter OF a century
Notwithstanding the apparent scope
Of the original interstate commerce act,
and in spite Of the tremendous energy
displayed IN 1906, there is one funda-
mental phase Of the subject which has
not been touched, and one Of the most
fragrant wrongs which is yet to be
righted. The fundamental omission re-
lates to the capitalization Of railway
corporations; and the other concerns
fairness In railway rates as between
communities and localities. L recog-
nize and applaud the spirit and cour-
age Of railway builders. railway own
ers, and railway operators; and Ihope
that / am as ready to praise and de-
fend them when they are right ash am
to denounce them when they are
wrong. There was o period IN this
country In which railway construction
and operation were necessarily some
what speculative. andtI am willing that
the men who were brave enough to In
cur the risks Of those days shall reap
the reward commensurate with the
hazard. This period has, however,
gone and we have entered the age Of
investment, and railway capital must
be so dealt with In the future. Through
the interstate commerce act the gov
eminent has assumed to exercise its
rightful power OF supervising the
charges which railway companies
make for the service which they rem
der To me It seems absurd to at
tempt TO regulate the rates Of common
carriers until It is determined upon
what capital the railway companies
can lawfully demand a reward. II is
at this point that congress has been
unjust to the railways. With no cri-
terion for the regulation Of rates, IT Is
not strange that there Is fear and ap-
prehension with respect to the work Of
the interstate commerce commission.
It is plain that one Of the first things
we ought to do as q government Is to
fix q basis upon which carriers may
earn interest and dividends. I know
that there has been mach recklessness
In the issuance Of stocks and bonds,
and many OF these securities represent
nothing but the audacity Of conscience
less promoters. But there are some
things which, having been done, oeln--
not be uRdole, and therefore we may
be compelled to accept the present cap
italization; but we ought TO immedi-
ately provide that hereafter there
shah be no capitalization that does
not represent Independent investment;
and by that I mean that neither sur
plus earnings nor increase IN the value
Of property should be capitalized.
When these provisions are made. and
rates are undeY consideration. there