The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1909-02-21
luse upon the subject of railroad

house upon the subject of railroad
rate legislation.
Mr.. Chairman, the attitude of the
senate committee operates to the in
terest of the railroads and not of the
public. The effect of their report, II
endorsed by the senate and house of
representatives, will be TO leave the
larger public, their constituents who
produce. consume, and ship the pro
ducts Of the country, to the tender
mercies of the railroads.
The producers. the consumers, and
the shippers generally should at once,
and with vigor, join issue with the at
titude of the senate and the house OF
representatives upon this great fed
eral question.
His Experience.
II had the homer TO hold the Of
flee of attorney general in my state
for fourteen years. In that long time
Il had many conflicts in the courts
as attorney general with the railroads
in the state of Florida. These legal
contentious grew out of resistance
on the part OF the railroads in the
state of Florida, to the rates as pre-
scribed by its state railroad commits
sion.
Wherever the railroads challeng-
ed the business and TeaSOnableness of
the state commissions prescribed
rate or rates, their one plea that they
relied upon was that the particular
rate so prescribed by its state rail-
road commission, or that the whole
series of rates prescribed by the state
railway commission, in effect, were
confscatory. and so diminished the
profits of the company in operating
its railroad as not 10 permit the com
pany to make reasonable profit upon
its investment.
Some of this litigation, or at least
litigation of a similar character, is
pending today IN the courts in the
state of Florida The issue is between
the Pensacola and Atlantic division Of
the Louisville & Nashville railroad
and the railroad commission. To
support the contention of the railroad
company and to support its plea, my
information is that the company has
placed in evidence in the litigation,
the entire physical cost Of its railway
lines within the state of Florida.
Makes Own Valuation.
In other words the railroad has been
physically valued by its own selected
engineers its railroad depOts, teTmi-
nails, section houses, its TOadbed,
rails, rights Of way. and every appur-
tenanCe Of the railroad and has placed
them in evidence in the pending lTw
suit to show what its Investment Is.
and in this way raises the issue that
the state commissions rate or rates
is. or are, confiscatOTy, and viii not
permit reasonable earning upon its
investment And under the laws of
Florida the railroad commission has
employed an engineer, and viii make
in their own behalf. their valuation
OF the physical property Of this con-
tending and liJigating railroad
So. Mr. Chairman. If conflict
should come, as it will come, in the
courts of the United States, on the
part of the attorney general Of the
United States and his assistants TO
enforce any rate or rates prescribed
BY the interstate commerce commits
sion, for any railroad, their first plea
in such courts would be that their
investment was so large. and their
physical property so great in value,
that such rate, or rates FL their Ope-
ration. would not permit the railroad
company 10 earn a reasonable cOmpeu-
satiOn upon its Investment This kind
OF physical valuation is an essential
part of the interstate commerce com
missions power 70 sustain in court the
business and TeasOnab Ieness OF the
rates they prescribe for the rail
roads. Unless they have this physical
valuation Of the properties of the rail-
road companies, then when they are
met By the pleas in the federal courts
OF the railroad attorneys, that their
rates are unjust and unreasonable,
and are cOnfiscatory IN their nature,
and in their effect. the commission
and its attorneys, and the federal gov