The Pioche record. [volume] (Pioche, Nev.) 1908-1925, 1910-07-09
THE NEW RAILWAY LAW.


The new bill finally agreed upon
In conference and enacted by cong
ress is an important and complex
measure, remarks the Mining &
Scientific Press. 1t will take many
court decisions to determine, not per-
haps what congress purposed. bst
what 1t enacted. The final effect OF
the new law, as relates to commerce
and industry. iseven harder to fore
cast. The passage of the law was,
bitterly contested and 1t represents
compromise: but It Is . compromise
based On study and not on log roll
ing. Few recent enactments Of cong
ress have been more fully and more
intelligently debated, and while In
its final form 1t contains nearly all
of the featurse of the law proposed
BY the president. 1t has none the
less beep rebuilt from terminus to
terminust to its own great advantage.
The two) leading features Of the act
are the creation Of q commerce court
and the establishment of the principle
that . proposed new rate must be
justified before going into effect. MI
nor changes are the extension Of the
authority of the Interstate commerce
commission to cover telegraph, tele-
phone, and cable companies provision
that the attorney general shall pros
ecute cases in place Of the commits
sion; an attempt to revive the long
and short haul principles; provision
that the commission may establish
rates on its own Initiative; prohi-
bition against carriers divulging in
formation regarding shipments that
may be used to the detriment of the
shipper; requirement that charge ar
1MsAble to proposed shipment be
quoted In writing; recognition of
state laws and courts; and provis-
ion for special commission to in
vestigate the feasibility Of superyis-
ing the isue Of railway securities
Among the things left out are, ~
any provision for legalizing combina-
tons Of railways, and (2) any for
making q physical valuation Of the
railways as one element in rate max
ing. The first was urged by the ad-
ministration, and the second by Mr.
r. M. Lafollette and the "insurgent"
senators.
Despite various uncertainties as to
Interpretation of details of the new
law. the latter can be unhesitat-
ingly be commended. The commerce
court Is well constituted and should
prove an important aid in securing
reaonable and just railway regu
lation. Specialization has its place In
the work of the judiciary just as
It has In mining engineering, and II
1t Ia wrong that cases should be take
either by the government or the rail
ways, to the particular circuit court
mos. likely to give q favorable inter
probation. The law should be uniform
and the new court, ranking with thu
circuit courts of the United States
and presided over by judges transfer
red to 1t from them for terms O.
five years each. should give cor
rect and stable Interpretation Of tn
law. The establishment of the com
merce court will not only relieve tn,
circuit courts, but in connection witt
other changes will also to some ex
tent remove the intertate commerc'
commission from the anomalous pc
sition Of being both prosecutor an,
Judge. The new law imposes heav,
additional burdens on the commission
and the aid of the commerce court
therefore, is most important.
The basis of rate making unfortun
{. ately remains unfixed, and the meth
cd OF comparisons Is still to be us
ed. with the old stipulation that rate
must be reasonable. It is to be hop
ed that the new commission will de
wise some effective method Of SUP
pervising the Issue of railway secure
ties and ascertaining the presen
value Of railway property. These mat
tiers rest 1T the bottom OF the All
tation against higher railway rates
The objection is not against payin,
. fair rate on areal Investment. bu
against the rates fixed to pay an un
known rate based on equally N.Y.
terious and evasive figures a. +
actzzhl investment The railways mali
tain that they must raise rates 4
order to pay suitable dividends d
outstanding securities and thus MAR
tain their credit 80 as to borrow I'D
ditional sums necessary for improve
ments and additions. When the enol
nous sums constantly borrowed b
railways are taken into account tn
question forces itself as to whethe
the companies will not do better t
make poorer showings as to earl
ings and borrow less money; in oti
er words to replace old locomotive
end rails. out Of earnings instead o