Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-11-08

r1shtful 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 1t Is determined upon
what capital the railway companies
can lawfully demand a reward. 1t i.
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.
1t is plain that one of the first things
we ought to do as a government Is 20
fix a basis upon which carriers may
earn interest and dividends. 1 know
that there has been much reclslessness
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, can.
not be undone, and therefore we may
be compelled to accept the present cap.
italization; but we ought to immedi.
ately provide that hereafter there
shall be no capitalization that does
not represent independent investment;
and by that l mean that neither sur.
plus earnings nor increase in the value
of property should be capitalized.
When these provisions are made, and
rates are under consideration, there
can be an intelligent opinion with re.
spect to their adequacy.
Altogether the most important phase
of the regulation of railway rates is in
hopeless confusion. The opportunity
for fair competition between localities
is absolutely necessary if we would
have anything like natural develop.
ment of the several parts of the union.
This competition is possible only with
railway rates fairly adjusted, not alone
with respect TO their adequacy as com.
pensation,, but with respect to each
other While it is highly essential
that the rates as whole shall not
giveVo the railway companies an un,
due reward upon the capital (which
they employ, 1t is still more essential
that business may be carried on in one
locality without the burden of rates
which discriminate in favor Of another
locality. In my judgment there is but
one way to accomplish what every
good citizen desires, and what the
railways themselves should be the first
m adv0nata All tho rofoe ovor y,b;,h
congress has jurisdiction and that can
be committed to the commission for
supervision should be reviewed az
parts of one great system.
A Uniform Plan Needed.
There ought first to be devised uni.
form plan of making up railway tar
IFS. and upon the commission this
duty should be imposed. Then, with.
in a period that would enable the
work to be done, the carriers should be
required, pursuing uniform method
to file with the commission all their
interstate rates. Then, within a fur.
Their period, the commission should
consider these rates not 'only abso-
utely but comparatively. If changes
were thought advisable, hearings
would take place so that the commits
sion might be fully informed When
that work is done, the rates should be
promulgated with the approval OF the
commission and thereafter there should
be no change in them without the con.
sent of the commission.