New-York tribune., 1909-12-23
INTERSTATE COWMERCE REPORT

INTERSTATE COHMERCE REPORT.
Inasmuch as the amendment Of the
interstate commerce law is one of the
topics that will soon be- pressed upon the
attention Of Congress- interest attaches
10 what the Interstate Commerce Com
mission in its annual report asks in the
way Of amendments. Ii does not dis
cuss the changes that the special COM
mittee which. at the direction of Mr..
Taft has been considering this matter
is publicly known "a have agreed upon.
hut rencws the recommendations IL has
made in previous reports.
The commission is still cnamoured Of
the idea Of a physical valuation of inter
state railroads. Iu It's opinion IL is an
urgent need 1t Is necessary
''that some means be- furnished by
(which. within reasonable limits. a
value can bc established which shall
''he binding upon the courts and the
commission" II the commission could
act with a valuation before IL that the
courts must or would accept. il could
act with certainty and confidence; but
how can a valuation be established
which viii bind the courts:
Tho courts themselves arc responsible
for the hold which this idea Of a physi-
cal valuation has upon some minds,
through the rule OF thumb method which
They established for determining whether
a reSulatiye act was or was not reason
able, but I'M the Consolidated Gas case.
after the lower courts had wrestled with
physical valuations. the Supreme Court
showed a disposition 10 get away from
Tho idea that the effect 81 a rate
was mathcmaticalv demonstra bic i'm ad-
vance. II held that il would not enjoin
the enforcement Of q rate law unless tbe
rate was clearly cunnscatory, and de-
clined 10 80 into The question Of values,
thus leaving the question one rather uf
common sense than Of mathematics.
Thar was n wholesome tendency. II the
courts should persist in il couraGeously,
tho Uses Of a physical valuation would
become very slight, and. al any rate
for the country 20 contribute 10 the tX-
inE Of that rigid system upon rcSulatyc
practices by such legislation as the com
mission desires would he a mistake
Tho commission again asks the author
ity 90 suspend advances in rates ~ its
discretion. This has been much oI,-
passed. but. IL seems 10 uS. unreasonable
When the commission h. trusted with
the authority 10 reduce rates that are
complained Of il certainly is not unrea-
sOnabie ~ trust IN with authority 10 sus-
pend an increase IN rates that is com
planned Of pending investigation. n
10. F.-r-
~ may also safely do the smaller thing.
Another reasonable increase iu its dis
crcuonarv authority il sought iu the
request ~ the commission for power 10
make additional through routes and
Joint rates. N already has that power
in ease no sue4aIhrouch route or Joint
rate exists. The commission would have
the power extended 10 all cases where.
IN itS opinion. public necessity and con
venience require such routes or rates.
The recommendation of the commits
SION that in certain instances the ship
per be permitted under the law 10 di-
rect tho intermediate routing of his traf-
H. may have some merits which do
not appear an a glance. I'm general we
should say. this would be a right which
the shipper would be little fitted and
little disposed 10 exercise. With the
further recommendation of-the commits
sion that IL be- given control over the
amount of railway capitalization public
opinion IN this country viii bc generally
iu accord. Most Of these recOmmcnda-
lions. We believe. are among those
agreed upon hy the Presidents advisory
committee. Except a. regards physical
valuation the commission shows a dis
position 10 develop its powers moderate
ly and In right directions.