The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-06-18
The Fourth Department Of me
Federal Government.

They did not sIlCCeed in having a phys
ical valuation clause inserted in the bill,
nor in authorizing the Interstate Com
mercc Commission TO pass upon issues
Of stOcks and bonds. These proposals
will undoubtedly come up again.
The statement Of Senator Ia TOILETTE
Of Wisconsin that the supreme Court
has deCreed that a railroad company Is
entitled 10 only fair return upon the
value Of its physical plant il refuted
Nv an examination II the decision, which
Indicates physical value as but one Of
the factors to be taken into the consid-
Grafton Of a fair return. The plant and
the equipment are the embodiment Of
past labor. In the performance Oi
transportation a railroad company util-
ICES also the present labor Of thousands
Of employees. The building up Of the
organization through which they are
trained and disciplined and their efforts
are coordinated Is an achievement fully
as difficult as the construction Of the
plant. Il Is only through present labor
that the embodiment II past labor is
available. and any fair estimate II the
value IT railroad company's property
must give due weight to - organiza-
ton. This Is but one of many Consid-
crations in addition to physical value
The Constitution authorizes Congress
. 10 regulate commerce between the
states. The issue Of stocks and bonds il
not commerce. The reasonableness Of
rates Is a main consideration in the regu-
lation Of commerce. and over these the
Interstate Commerce Commission now
has well nigh absolute power. When the
commission has seen that rates are rea-
sOnable Il has safeguarded the shipper
When the Government undertakes n
assure the investor II the integrity Of
other than a Government bond il will
have taken a lorg step in paternalism.
The positive accomplishment of the
hill may be summed up in the statement
that in ~ far as immediate control over
+ the processes Of industry and the flow
Of commerce is concerned il makes the
Interstate Commerce Commission the
most powerful branch Of the Federal
Government. The commission is EN-
powered 10 pass upon every rate pro-
posed by a railroad company before Il
takes effect and 10 set aside az its dis
erection any rate in effect Il therefore
becomes the arbiter as 20 whether the
profits Of the shipper or the railroad
shall be greater or less II has power.
as already eNemplifed by It's decision in
the Missouri River rate case, 10 give the
distributing centres 81 one section an
advantage over those Of another sec
} ton Of the country. Its authority under
the long and short haul clause enables II
70 say whether the wholesale merchants
Of the growing cities Of the Rocky
Mountain region shall have their ambi-
tons gratihed by the extension Of their
markets in competition with the cities
Of the Pacific coast. or whether the prac-
tice of the railroads, upheld by the
supreme Court, which has given "a
those Pacific coast cities The natural
advantages Of their location. shall be-
/ continued.
When a new rate is proposed the com
mission NAV in It's discretion take No
long as ten months in coming Ia a con-
clusion whether IL will approve or reject
IT, At this time not many rates are
adjusted periodically 90 meet the con-
diiions Of a particular season. but there
are such rates, and they are among the
most important. For example, there Is
in the season Of navigation on the
Great lakes a large movement 81 btu
minOus coal from the fields 81 western
Pennsylvania. western virginia and
eastern and southern Ohio by rail to
Lake Erie and thence by vessel 10 the
upper lake ports. where il r. stored for
distribution 20 the places II cOnsump-
ton in the winter when the lakes are
not navigable. Il has been the rus
torn 70 adjust the rates on coal from
these districts for the initial rail move
ment each spring prior 20 the opening
II navigation. taking into oonsidera-
ton the prospective consumption II
coal n well ~ the proportions in which
these competitive fields have supplied
the market. the railroad serving each
field striving to protect liz interests.
Il Is n be hoped that the commission
under the new law will endeavor TO give
prompt consideration 10 rates such N
these, which need 20 bs varied from
time 20 time in the interests II the pro-
ducers and consumers a. well a. Of the
railroads.
Taking one year With another. the rail
roads have been fling new tariffs with
the commission az the rate u sO0 ~ more
a day. This IL a. tho rate Of about
seventy tariffs a day for each of the
seven Commissioners. lfaCOmmissioner
worked ten hours a day AZ nothing but
examining tariffs he would have %
brui.rze about seven an h0ur. or one
every nine minutes. With large force