fully set forth, clearly and concisely, the facts of the case as he finds them, and to point out the acts which constitute a violation of law, or which acts in themselves are ultra vires. It is upon this report of the Secretary of Internal Affairs, and the opinion prepared and filed by him with the Attorney General, that the Attorney General bases his action against offending corporations.

In the complaint against the Pennsylvania Railroad Company for the issuance of the 1,000 mile mileage book with its objectionable rebate feature every view of the case was carefully considered, both with reference to the powers given in the act of the Legislature of 1846, the maximum rates for the transportation of passengers, its relation to the old Constitution, its accountability to the Constitution of 1874, its acceptance of its provisions, and the application of that instrument to the railroad in the matters referred to by the complainants.

In the consideration of this subject a very important question was involved; that of the vested rights of corporations. This feature of the case was passed upon by the New York court of appeal a few years ago, when the Legislature of that state passed a law requir ing all railroad companies to grant mileage books at the rate of two cents per mile. In passing upon the validity of this act, the court of appeals of the state of New York, the jurisdiction of which, is similar to the Supreme Court of Pennsylvania, decided that the act was invalid as to all companies incorporated before the passage of the act, which under the laws of the state of New York, were entitled to charge a rate of passenger per mile in excess of two cents. This sustained the doctrine of vested rights, in accordance with the position assumed in that state by the common carrier corporations, with reference to the two cent mileage book.

The adjudications of English and American courts regarding rates of transportation, clearly show that rates must be reasonable. So uniform have been the decisions of these questions, that there is no room for doubt as to the law in the premises. Hence we are confronted in this proposition, with the decisions of the court of appeals in the state of New York, sustaining the doctrine of vested rights, and the decisions of English and American courts, that the state and the government in some way or another can control rates in so far at least as to insure their reasonableness or to put it in another view, if a rate is found to be excessive, the courts are clothed with power to declare it unreasonable and being unreasonably high to declare it illegal.

If the doctrine of vested rights is to prevail in Pennsylvania to the extent that it appears to have been sustained by the court of appeals of the state of New York, it is not likely that the Legisla

ture can pass any act in Pennsylvania fixing a maximum rate of two cents which will stand a legal test.

Under the special laws of Pennsylvania authorizing the incorporation of certain common carrier corporations, and under the general laws of the Commonwealth, rates of transportation for carrying of commodities are far in advance of what the average receipts are per ton per mile.

Indeed if the railroad companies were to charge rates which are authorized to be charged by special acts of incorporation, and by general laws authorizing incorporation of common carriers, the receipts from operation of such carriers would be increased probably 300 per cent., and such an increase would require an adjustment of the commercial affairs of the State, create no little disturbance and perhaps bring to a standstill many of our great industrial interests. The maximum rates, in other words, of twenty-five or thirty years. ago, allowed by law, may have been an approach to reasonable rates then, but the improved facilities for conducting transportation, the strengthening of road beds, the increased capacity of cars and the overwhelming increase in the power of locomotives, have produced such changes in conducting the business of common carriers, that the rates of thirty years ago, then considered reasonable, would now be considered exceedingly unreasonable.

The rapid transition in transportation affairs has produced wonderful changes and but few of the old methods are applicable or in any way fit into the new or the changed conditions

The acceptance of the provisions of the new Constitution by railroad companies, in order that they may receive the benefits of the legislation passed since its adoption, carries with it also the acceptance of many responsibilities and obligations, for they cannot become beneficiaries without the reciprocal relations that follow in the assumption of the responsibilities and obligations to the public which the Constitution places upon a common carrier corporation. It cannot be allowed as was claimed in the mileage book case, that the railroad company has a vested and absolute right to charge three cents per passenger per mile, if such a rate under present conditions is unreasonable. The proper interpretation of law would be that the railroad companies have a right to charge not exceeding three cents per mile, providing that charge is reasonable.

Indeed under the very act of incorporation of the Pennsylvania Railroad, found in the pamphlet laws of 1846, the board of directors is authorized to fix rates of transportation which may seem reasonable.

Again, if the doctrine of vested rights is to be carried to the full extent that it appears to have been in the decision of the court of

appeals in the state of New York on the mileage book, and that decision were to be sustained in every state of the Union, the public regulation, the adjustment and establishment of rates on a uniform or on a fair basis would be practically at an end.

Railroad companies clearly have a right to their say in court in any proceeding regarding the establishment or control of rates of transportation, and if it shall appear that a rate either established by the exercise of administrative powers, or by statute, is unreasonable, is not sufficient to secure a fair return on investments having regard for cost of construction, maintenance and operation, then in accordance with the spirit of American institutions, a court of review can determine the equities in the case and give the carrier such re lief as justice demands.

To assume that a railroad company is immune from the restrictive legislation now existing, which has been passed in regard to public regulation and control, because in the infancy of railroad development, rates were authorized to be charged which are now excessively high, is most ridiculous. This was the view taken in the opinion filed in the case of sundry associations against the Pennsylvania Railroad for the issuance of its mileage book with the $10.00 rebate feature.

In the paper book prepared by the Attorney General, against the Pennsylvania Railroad Company and other corporations, there is a disregard to some extent, of the findings in the case by the Secretary of Internal Affairs, and his opinion as to the law. In other words, the paper book is a departure from complaint, and includes other parties, than the Pennsylvania Railroad Company. As these other companies were not complained of, and no investigation made regarding their public functions, it is not easily seen why they should have been included in the proceedings commenced by the Attorney General.

Whether the case commenced by the law officer of the Commonwealth, will ever be pressed to an issue, is best known to that officer. but the Pennsylvania Railroad Company and many other railroad companies have issued a mileage book at the flat rate of two cents per mile, or $20.00 for 1,000 miles without any deposit feature, and good for any person or any number of persons. The objectionable features complained of in the case against the Pennsylvania Railroad have been eliminated, and indeed more favorable conditions exist than any one had a right to expect.

Scarcely can it be said that in any year since the construction of railways began, have the railways conceded so much to the traveling public, as they have in the year 1906.

In conclusion it might be proper to say, that in the opinion of the

present Secretary of Internal Affairs, the act of 1874 should be so amended that the Secretary of Internal Affairs shall be given power to enforce his decrees, instead of referring matters complained of, after investigation, to the Attorney General.

Where a railroad company is found to charge rates for any services which are excessive, or is guilty of any illegal act, after complaint, and investigation made, the Secretary of Internal Affairs should be authorized to issue his order upon the railroad company to abstain from wrong doing, and upon failure to comply, to enjoin such railroad company from the performance of its wrongful acts. If a railroad company shall be wronged by the decree of the Secretary of Internal Affairs, in such a case the matter can be brought to review before the courts and justice done as the facts may warrant.

Similar proceedings are had in other states of the Union where railroad commissions have been established, whose duties in some directions are along the same lines as those of the Secretary of Internal Affairs in Pennsylvania. Similar procedure also obtains under the laws of Congress, by virtue of which the Inter-state Com mmerce Commission may enjoin or restrain common carriers subject to judicial review.

In Pennsylvania the laws relating to public supervision are fragmentary, are not concise, specific or comprehensive. The fundamental law, which only partly executes itself however furnishes a basis upon which wholesome legislation should be enacted so that in a moderate and reasonable degree such supervision may be exercised as will insure fairness in all that pertains to transportation in Pennsylvania both to shipper and carrier.

THE HOMELESS 26, by S. M. Williams, Secretary.

THE TRAVELLERS' PROTECTIVE ASSOCIATION, by J. Mahlon Pickering,

THE TRAVELLERS' PROTECTIVE ASSOCIATION, by F. H. McIntyre,

vs.

THE PENNSYLVANIA RAILROAD COMPANY.

On the 16th day of January a compaint was filed with the Secretary of Internal Affairs, of which the following is a copy:

Office of Supreme Circle, "The Homeless 26,"
Sixth Street and Penn Avenue,

Pittsburg, Pa., Jany. 15, 1906.

Hon. Isaac B. Brown, Secretary of Internal Affairs, Harrisburg, Pa.:

Sir: The petition of "The Homeless 26," a corporation of the State of Pennsylvania, by S. M. Williams, a citizen of the State of Pennsylvania, respectfully represents:

That said association was chartered by the Court of Common Pleas No. 2, of Allegheny county, under the laws of Pennsylvania, on the 29th day of March, 1905.

That its object is to promote among commercial, business and professional men, acquaintance, good fellowship and the mutual interest of each other.

That your petitioner is the secretary of said association, and has been advised that it is the especial duty of the Secretary of Internal Affairs of the State, to exercise a watchful supervision over the railroad, banking, mining, manufacturing and other business corporations of the State, and to see that they confine themselves strictly within their corporate limits; and in case any citizen or citizens shall charge under oath, any corporation with transcending its corporate functions or infringing upon the rights of individual citizens, said Secretary shall carefully investigate such charges, and may require from said corporation a special report as enjoined in the constitution of the State; and in case he believes the charges are just, and the matter complained of is beyond the ordinary province of individual redress, he shall certify his opinion to the Attorney General of the State, whose duty it shall be, by an appropriate legal remedy, to redress the same, by a proceeding in the courts, at the expense of the State.

That your petitioner is advised and believes, that the Pennsylvania Railroad Company, a corporation of the State of Pennsylvania, is transcending its corporate functions and infringing upon the rights. of individual citizens of this State, in the manner following, viz:

That upon personal application the said Pennsylvania Railroad Company issues to citizens of the State, and has issued to your petitioner a mileage book containing 1,000 miles, for and in consideration of the sum of $20.00, or at the rate of two cents per mile.

That said corporation charges for said mileage book an additional sum of $10.00 making the total cost therefor $30.00, and under the following conditions and stipulations which are printed on the inside cover of said mileage book, viz:

"If this ticket is used exclusively by the original purchaser and lawful owner for his or her personal transportation within twelve (12) months from date of issue stamped hereon, and that fact is established by the record pertaining

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