The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1910-06-02
TIVE PUBLIC.

TlE EORCOxlE N TQDAAS. =
Senator Cummins' amendment to
the railroad rate bill, providing that
increases in railroad rates must have
the approval of the interstate COM
merce commission, was defeated by
tho regular in the Senate. 1t was
supported, mons others, by the two
Senators from South Dakota.
The Cummins proposal, however,
had weight enough to bring from the
opposition a compromise provision,
which gives the commission power,
within 100 days, to suspend advances
in rates.
In other words, Cummins would
have put the burden of proof OF the
reasonableness of rate advances up
on the railroads; the provision adopt
ed puts upon the commission the bur
den of proving the unreasonableness
OF proposed rate increases.
1t is the railroad contention that
none but railroad officials, with their
peculiar knowledge of conditions
Throughout their territory, are COM
petent to arrange railroad rates. They
seem to take the view, further. that
la ne are so competent as railroad Of
|ficials to ascertain how much rail-
road companies earn and to adjust
rates accordingly. This is the view
taken by the Senate regulars. The
"progressives", on the other hand,
hold to the opinion that the rights Of
the public are superior to those Of
the railroad companies.
Here we have laid bare the ques-
ton which is at the bottom of the
Tissue of regulation of common car
riers. The railroad companies stand
%squarely upon the right of capital to
10 reasonable return and, asserting
that right, proceed to make increases
in rates when they will and vigorous
|ly oppose any attempt to deny them /
a free hand in SO doing. The advo-
lcates Of strict regulation assert that
the railroad companies are above all
else public servants, quasi-public cor
operations, doing business by the ex-
ispress permission of the public They,
admit freely that the railroad COM
panies are entitled to, and should
have, a reasonable return on their In
Ivestment, which the constitution,
properly enough, regards as part Of
their property. But they insist that
It should not be left to the cupidity
of the railroad companies to Judge
what is a reasonable earning; that
the public should exercise its right
Ito know all Of their affairs and see
to It that their profits : not ex-
cessive.
It lis true. as Senator LaFollette
said In his speech last week, that the
public has always been without a
hearing in the control of railroad
Provision was made in
the 1905 rate bill for a hearing on
the complaints Of shippers against
discriminatory or unreasonable rates.
But there is no law which makes 1t
the business of any public official, to
appear before any tribunal and pro-
test against rates in the name Of
those who really pay the rates. Ship
pers are only indirectly Interested In
opposing rate advances. They need
only to add these increases to the.
price of their wares. While it is un-
pleasant to do this with their Gus
toners and it requires a little more
capital to carry on their business,
they need not lose a dollar because
Of the increases in rates.
Surely, then the real interested
party is the public, whose intrests
are never discussed save by some La
Toilette and who today is without a
single recourse to prevent unwarrant-
ed rate advances. II the Cummins
amendment had passed, 1t would have
become the duty Of the interstate
commerce commission to examine in
to all proposed advances in rates and
ahnd that they are warrarted;sa in.
other words, that they are needed to
assure to the railroad companies the
reasonable return to which they are
entitled. That would have put the
interests of the public first. The