The Railroad Question: A historical and practical treatise on railroads, and remedies for their abusesLarrabee, William
History
The Railroad Question: A historical and practical treatise on railroads, and remedies for their abuses
Larrabee, William
Railroads; Railroads -- United States; Railroads and state -- United States
patronize any road, that if it would not withdraw its patronage from the
old line, the new line would soon become bankrupt, and that in such an
event its owners, and not the public, would be the sufferers. This
argument may be met by the statement that, aside from the fact that
concerted action among a large number of people can never be secured,
few roads rely for their support solely upon local business, and that
any loss which the older road sustains from encroachments by its rival
upon its through traffic it is compelled to make up by raising its rates
upon its local business. It is the almost inevitable consequence when
one road is paralleled by another that the business which was
previously done by one road will be nearly equally divided between the
two, and under the rule laid down by Judge Brewer the public will be
called upon to pay the operating expenses and the interest on the bonds
of both, together with such dividends on the stock as the financiering
ability of their managers may secure. The better judgment seems to be
that to determine what are reasonable rates is not a question for
judicial adjudication.
The Interstate Commerce Commission, in their fourth annual report,
assert that "there can be no standard of expense which the courts can
act upon and apply, but that the whole field is one of judgment in the
exercise of a reasonable discretion by the managing powers, or by the
public authorities in reviewing their action." Their views upon this
subject are still more definitely stated in the following words
contained in the same report:
"An attempt is made to give authority to the courts to
interfere by the suggestion that property or charter
contract rights, or both, are involved in the matter of
fixing rates, and therefore that it is not possible the
conclusions of administrative boards should be final. This
is an endeavor, by the mere use of words, to confer
jurisdiction upon the courts where the substance is
altogether wanting. Property or contract rights are involved
in these cases precisely as they are in numerous other cases
of the exercise of power under the police authority of the
State, either by the State itself or by its municipalities."
These views cannot fail to commend themselves to any unprejudiced mind.
It is a well-established fact that all officials will, if permitted,
extend their jurisdiction, and judges are no exception to the rule. It
was therefore but natural that the courts should attempt to solve the
problem of railroad rates.
Public-domain text, read in full here on John Shaqi.
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