without
other amendment, an instrumentality of the highest value in
removing the evils against which it is aimed.

"The specific instances in which the statute has received
judicial construction, and the limitations upon its scope
and meaning which the courts have imposed, will be alluded
to at greater length in another part of this report.

"It seems proper, however, to observe in this connection
that the effect of these decisions in weakening the law and
preventing its enforcement has been greatly exaggerated. The
impression has been created in many directions that judicial
construction has invalidated the essential feature of the
statute and condemned the general principle which lies at
its foundation. That impression cannot be too speedily
corrected, for nothing has been decided which permits such
an inference. On the contrary, neither the power of the
national legislature to regulate the transportation of
interstate commerce nor the general policy of the existing
law has been questioned by any tribunal."

Probably no law in the United States has ever before been so fiercely
attacked at all of its vital points as has this law. It is not strange
that among the great number of National and State courts the railroad
companies have found occasionally a judge ready and willing to assist
them in breaking it down, but upon the whole the judiciary has been
disposed to co-operate with other departments of the Government in their
efforts to secure effective regulation of the transportation business.

CHAPTER VI.

STOCK AND BOND INFLATION.

The complaint is frequently heard from railroad men that our freight
rates are too low, and in support of it the statement is usually made
that the greater part of the railroad stocks of the United States pays
dividends considerably smaller than the average interest realized by
capitalists on money loaned or invested in other enterprises.

This statement may be true, and yet it is valueless as an argument for
higher rates. It may be admitted that the dividends declared upon the
face values of railroad stocks are quite moderate, but it is a fact too
well authenticated to be contradicted that railroad securities represent
to a considerable extent only fictitious capital. The public concedes
that liberal returns should be allowed to railroad companies on money
actually i