Omaha daily bee., 1899-10-19
CONTROL OF RAILROADS.
Advantage of Supervision Under Adc-
quatc Federal Laws.
Kansas City Star.


Mr.. NJ. f. ingalls,, president OF the Big
Four and the Chesapeake & Ohio railroads,
advocated an extension OF the power Of the
Interstate Commerce commission in his testi-
mony before the Industrial commission at
Washington yesterday. MIR. ingalls, thinks
that, along with the authority to regulate
the operation Of railroads should go the
power to aid the railroads in maintaining
rates. He desires the anti-pooling law re-
pealed and the railroads given power to
make agreements with one another to fix
rates.
II this is done Mr.. ingalls, Is willing that
the Interstate Commerce commission shall
have full authority to approve or disapprove
OF any rates adopted and to examine the
books and accounts OF railroad companies
just as at present the comptroller Of the
currency has full power to look at the books
OF national banks, in order to see that they
are not violating the law. Mr.. ingalls, de-
clares that, with proper legal guarantees
OF stable rates, so that the railroads could
depend on reasonable earnings, he would
favor system of profit sharing with EN-
ployes.
1t would not take much of an extension
of Mr.. ingalls, ideas to develop system
Of absolute government control OF railroads,
leaving to the companies only the details
OF operation and the distribution of a
reasonable return to security holders. Such
a system in order to remove all tempta-
tion OF fraud or evasion Of the law, should
limit the amount of interest and dividends
to be paid to security owners.
Let 1t be supposed, for example, that all
railroads in the country be reorganized with
capitalization based on per cent net re-
turns in an ordinary year, and that all
earnings in excess of that sum be paid into
the national treasury in return for gov
ernment guarantee of per cent annual
interest to the security holders The value
of railroad stocks and bonds would thus
be made stable and sound. The Interstate
Commerce commission, having absolute con-
troll OF rates. could so regulate them as TO
insure the yield OF 4 per cent on capitaliza-
ton and in addition a large revenue Tor
the national treasury. The temptation Tor
competing lines to cut rates or grant spe-
cial privileges to favored shippers would
I've entirely removed, the country would be
absolutely assured of stable, uniform and
equitable rates, and all the benefits OF gov
ernment ownership could be secured with
out any of its disadvantages.
Another great benefit OF such an arrange
ment would be the complete elimination OF
speculation in railroad securities. With no
possibility of more or less than per cent
annual returns the value of railroad stocks
| and bonds would not be subject to fuctua-
ton or susceptible of manipulation by stock
, gamblers.
Some such plan as this seems to be the
inevitable solution of the railroad problem.
. The managers of railroads have despaireo
of maintaining rates without agreements
and pools, and the people of this country
are not likely to countenance the placing
Of any such power in the hands of the rail-
road companies without the most rigid su-
| nervision by the national government.