Salt Lake Telegram | 1919-10-06 | Page 13 | Provision Upheld in Railroad Bill

PROVISION UPHELD IN RAILROAD BILL Right of Congress to Regulate Regulate Regulate Regu Regu- late Excess Earnings Set Forth WASHINGTON Oct 6 The 6 The right ot of congress to regulate excess earnIngs earn earn- Ings Ines of ot railroads over and above a fair return upon the value of ot th the property is set forth in an opinion Presented to the National Association of ot Owners of ot Railroad Securities b by Forney Johnson of ot Birmingham Ala ot of advisory counsel for tOr the association tion and concurred in by Root Roo John G. G Milburn New York John S. S Miller Chicago and Hugh i L. L Bond Jr Jr Baltimore I The attorneys answered a brief recently recently re- re rendered to 10 the Association ot of otI Railway Executives e by Charles I E. E I Hughes W who held I that 1 railroads which produce excess earnings are just juat and reasonable the earn earnings lOgs from such Buch rates are aro the property ot of the roads which may be taxed but not taken away Mr Me Hughes contended that the latter proceeding would be b. con confiscation cation Discussion that part of ot Mr Hughes Hughes' brief hold holding unconstitutional Provisions provisions pro pro- visions ot of the Cummins railroad reorganization reorganization re- re organization bill which would take tak- for tor the government excess earnings over a lair fair return Mr Johnston and hIs associates said Bud The chief basis for tor Mr tile Hughes Hughes' conclusion IS the proposItion that the shipper cannot cannot be b. required to pay anything more than Is reasonable for tor each service and that his payment ot of the established rate without right to reparation conclusively and finally establishes the right ot of the carrier to retain the sum Bum thus paid We Wa find i nothing in the constitution to justify that Our conclusion Is that the principle prin- prin I ciple ot of grouping carrIers into competitive com com- areas i for tor the purpose of ot ratemaking rate rate- making accompanied by appropriate provisions for tor the regulation ot of excess rate j earnings IS clearly within the power of congress and none non ot of the Cr criticism directed fK against the process o s of I Io I criticising the provisions s of the ori orl origInal Inal d draft t of t the e Cummins ns bill dis disqualify disposes dis- dis sd I poses o s us h in a any w way to qualify ot our conclusion I