Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-02-13
RATES BASED ON VALUES
MR.. MADDEN'S PLAN TO REG
ULATE RAILROAD.
Interstate Commerce Commissions
Enlarged Powers to Pass Upon
Freight Charges.

That the interstate commerce commits
sion should have power to pass upon the
freight rates made by the various rail-
roads Of the country before those rates
become effective was the declaration
made today on the floor of the House by
Representative Madden Of Illinois. He
still to give the commission power ito
make a valuation of the properties of the
carriers Of the country and to base the
rate upon such a basis as will yield them
a reasonable return upon such valuation"
Mr.. Madden declared that the report
which has been made by the commission
in response to the resolution of the
House asking for information about in
creased freight rates in various sections
of the country ''has satisfied every one
that excessive increases In freight rates
have been made and that the time has
come for the people of the country,
through their representatives, to enact
such legislation as will prevent the con-
tinuance of excessive charges for the
movement of commodities" Mr.. Madden
accused the Interstate commerce commits
sion of being COMMITTED to the economic
falacy that public service corporations
are entitled as of right to remunerative
returns upon their stocks in addition to
interest on issues of bonds.
Criticises the Commission.
He further accused the commission of
having in its reports Inadvertently fallen
into the groove well worn by railway Off
Gals in making annual reports. They in
dulge," he continued, Gin the same mis-
leading assumptions and deceptive termi-
nology employed by the railroads. They
have never segregated the net earnings so
as to show the entire sum of actual prof
its, itemiZing the vast amounts devoted
to improvements under that head.
The first mentioned heresy. the speaker
declared, "if once accepted and fixed.
even as unwritten law, will tmpoverish
the people of the country and transfer to
Wall street what still remains of govern
ment at Washington. Why should the
government" he asked, guarantee the
solvency and also the prosperity of rail
roads any more than that of manufacture
ers, merchants and farmers?
After speaking of the cause of panics
and depressions, Mr.. Madden declared
that panics ARE not attributable to the
enforcement of law against the railroads.
Not only So, ne aoded, put IL IS also
clear that it's enforcement, or rather its
non-enf orcement, has had little. If any,
bearing upon the condition of railroad
business or upon any general business
He declared that the subject of panlcs
had been seized upon as a substitute for
sound argument in effort to bring
about a repeal of the antitrust law.
Consult Their Own Wishes.
''But while the railway managements,'
he said, make show and pretense of
holding council with the shipping interests
they invariably consult their own inter-
ests and formulate their plans in advance
and In secret. If possible. they hoodWink
commercial and other interests. but in
case of failure to do SO. they proceed to
execute their own plans. relying upon
tact, intrigue and the laws delays for a
safe deliverance at the hands of the in
terstate commerce commission"
Mr.. Madden declared that the railroads
have some advantages over other business
institutions, one of these being that. be-
ing monopolies and in combination or
having adopted a community of interest
plan, they can recoup their losses after a
panic has spent its force and have the
usual monopolistic advantages during a
business depression because there Is a
large volume of traffic which must go
whether times be flush or dull.