Note 380 — Chapter XXXII · REMEDIES.

Many of the States have strong laws, but the inharmonious, uncoordinated efforts of individual States have proved of little avail against the giant railway systems. Of the 31 States which have established railway commissions, 22 have given the commissions more or less of the rate-making power. For example, the Alabama Code, 1886, gives the Commission authority “to revise the tariffs and increase or reduce any of the rates.” The California Constitution, 1880, confers power “to establish rates;” Florida Laws, 1887, “to make and fix reasonable and just rates;” Georgia Code, 1882, “to make reasonable and just rates;” Illinois Laws, 1878, “to make for each railway a schedule of reasonable maximum rates;” Iowa, 1888, and South Carolina, 1888, the same as Illinois; Minnesota, 1887, power “to compel railways to adopt such rates and classification as the Commission declares to he equal and reasonable;” South Dakota, 1890, the same; Mississippi, 1884, “to revise tariffs;” New Hampshire, 1883, “to fix tables of maximum charges.” (See 63 N. H. 259.) Kansas: on complaint and proof of unreasonable charge Commission may fix reasonable rates, and if companies don’t comply they may be sued for damages. The Massachusetts Commission has “authority to revise the tariffs and fix the rates for the transportation of milk” (158 Mass. 1). In New York the board may notify the railways of changes in the rates, etc., it deems requisite, and the Supreme Court may in its discretion issue mandamus, etc., subject to appeal. In Nebraska the State Supreme Court has held that general language prohibiting unreasonable rates, and giving the Commission power to enforce the law, is sufficient to confer authority to fix reasonable rates in place of those found unreasonable, such authority being essential to the efficient execution of the law against excessive rates (22 Neb. 313).

In none of the States does the power to regulate rates appear to have produced results of much value. In some States, Georgia, Texas, Nebraska, Iowa, etc., the power has been at times vigorously used, but the effect has been to antagonize the railroads, which have so much power that is beyond the reach of any State Commission that they can arrange their tariffs and service so as to work against the aggressive States and disgust the people with the consequences of trying to control the rates. Senator Newlands, who is sincerely on the people’s side in the struggle for justice in transportation, voiced the common opinion when he said in the United States Senate, January 11, 1905, “As to the rate-regulating power, my judgment is, and it is the belief of almost all experienced men in this country, that the rate-regulating power exercised by the States has not, as a rule, been beneficially exercised.”