Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-09-28
New York Finanoier Sums Up
Situation In Comment on
Late Events.
RECENT RULINGS ON RATES.
Judge Otis Opinion That state Com
missions Cannot Infringe on Inter
state Traffic Rates Touched on.

4
New York. Sept % Henry Clews
has the following to say relative to
| iSilroad conditions:
As Fundamentally favorite feature
may be noted tho recommendations Of
Judge OTIS OF 81 Paul. who, acting az
master In chanccry for the United
states circuit court Of appeals rules that
state legislatures cannot infringe upon
Interstate traffic rates: also that low
rates that railroads were forced BIZ the
state commission Of Minnesota to
charge in that commonwealth were
confiscatory ana the law under whose
provisions the order was given uncon-
stltutional. The recommendations Of
Judge Otis must yet receive the en-
dorsemsnt Of the court; hut they are
based so palpahly on common sense.
which Is the real foundation OF com
mon law, and judge Otis is jurist Of
such high distinction that IL is much
more than random guess to predict
that the court will recognize the sound
wisdom of the ruling The far-reaching
effect OF a federal court ruling on these
lines can hardly be appreciated at first
glance. our railroads have during the
last few years borne the brunt Of ac-
tive sntagonism by national and state
governments. not 10 mention municipal
and even smaller subdivisions of gov
ernmental activities. state legisla
lures have In many Instances decided
they had the right to fix the rate OF
remuneration that railroads should re-
Ceive for transporting passengers and
merchandise In and through the states.
This ruling by Judge otis, II confirmed,
will remove at ono swoop the state
legislation and Interference that has
so gradually grown into severe handi-
cap against railroad prosperity. An
other point that should not be over
looked IL Judge Otis's contention that
railroads are entitled 10 earn per cent
on the valuation of such portions or
their property as are actually employed
in connection with the operations OF
such roads In their functions as COM
mon carriers. This excludes all outside
land holdings or other investments. ~
a basis of valuation, which the rail-
roads may have. The point Is perfectly
clear that the return permitted shall be
Z per cent on the total valuation of
railroad property used in the business
Of transportation.
TURNING POINT REACHED.
This railroad ruling suggests that
turning point has been reached IN the
unnecessary attacks upon railroad prop
erty. There Is no question that abuses
had arisen that required drastic cor
rActive measures; and the railroad
roanagennents by their high handed
methods were themselves largely 10
blame for the fact that these corrective
aFencieS.took the form OF unnecessarily
hurdensone provisions But the rail-
roads have now a national law that VIII
nrotect them in their constitutional
rights quite as effectively as II will
curb their abuse OF power. The rail-
road problem 81 the future is 20 he set
tied nv the simple rule or right ana
Justice. II stats legislation, as by the
ST Paul decision now seems the prom
lse is n he settled on the same lines,
then the RI broad situation must be
considered highly improved. The Min
nesota CONN ssioners are reported 10
have determined 10 carry the question
Of their Jurisdiction to the supreme
court No fault can be found with such
a determination. for our supreme court
Is not a bugbear 1t is our court OF
fnal resort. whose power exceeds that
even Of the president. whose members
are appointed for life and whose action
has hut one restraint that Of exact
Justice 10 rich and poor, and to corpora
ton no less than to individual. Presl-
dent Tafts appointments 10 I'LL va
cancies have been admirable and We
need not fear any action the supreme
court ~ our country will take. What
ever the decisions In the standard OIL
and American Tobacco cases. We can
REST assured that nothing will be or
dered that will smell confiscation; our
supreme court is in M sense boEey.