The Railroad Question: A historical and practical treatise on railroads, and remedies for their abusesLarrabee, William
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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
The attempt so far has been fruitless, nor will it be otherwise as long
as the courts persist in approaching with abstract legal maxims a
question which, above all things, requires the light of experience and
the exercise of sound discretion. The question of railroad rates will
never be satisfactorily settled until it is definitely referred to
expert administrative State and National boards empowered and prepared
to meet the many contingencies that will always arise in the
transportation business.
It is not difficult to account for the inability of the courts to
properly adjudicate the question of reasonable rates. The legislature,
or a board to which it has delegated its power, prescribes for a
railroad company a classification and tariff. The company claims that
the rates so fixed are unreasonably low and applies to the courts for
redress.
Now, if the rates were based upon the cost of service only, it might,
perhaps, be possible for a court to determine whether the prescribed
rates are adequate or not. But even in such a case the question would
arise whether the capitalization and the operating expenses of the road
are not excessive, and its determination would require expert knowledge
and sound discretion rather than legal lore. However, since the cost of
service is not the only, and with railroad men not even an essential,
factor in rate-making, it is evident that the rates upon single
commodities can not be reviewed upon their individual merits, but the
tariff must, in the judicial determination of the question whether it is
reasonable or not, be viewed as a whole. But as it is impossible to
foretell what effect a readjusted tariff would have on the revenues of a
road, even courts are forced to admit that an actual trial of the tariff
is necessary to establish its merits or demerits.
Public-domain text, read in full here on John Shaqi.
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