Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-22
SEES A LONG DEBATE
BOTH IN COMMITTEE AND IN THE
SENATE.

Senator Newlands of Nevada, who is a
member of the Senate committee on inter-
state commerce, visited the White House
today. On his way from his talk with the
President he made this statement to a Star
reporter In reference to his attitude on the
railroad rate proposition:
II have no doubt that measure for rail-
road regulation. providing for the prompt
discrimination OF rates where disputes arise
between shippers and communities on the
one hand and the carriers on the other,
will be passed the coming session. But 1
look for prolonged consideration both In the
committee and the Senate. and the public
will probably grow impatient over the de-
lay However. while I share In the general
opinion as to the wisdom and necessity of
rate control, 1 believe that elaboration is
essential. If we are to bring forth a cura-
tive rather than merely palliative meas-
ure.
His Individual Belief.
individually believe in comprehensive
action on the whole question OF transports
ton By means Of national incorporation
act, covering the incorporation of new COM
panies as well as the consolidate of old
guarding strictly against over-capitaliza-
ton, preferences. rebates and discrimina-
tions, and compelling an automatic but
gradual reduction in rates. as the total
business Of the country increases. but
limitation OF dividends. We can afford to
validate the oyer-capltalixation of the past
If We can prevent the over-capitalization
OF the future, which, under lax state laws,
promises to be immense.
We should encourage consolidation while
wisely guarding capitalization. As it IL, we
insist upon competition, while at the same
time We condemn the necessary conse-
quences Of competition In the shape of pref
erences and rebates, the devices by which
competitive business can alone be secured
We should do away with the absurdity
OF permitting the states to charter carriers
for interstate commerce. Three-fourths of
the transportation of the country Is inter-
state and as interstate commerce is clearly
intrusted by our Constitution to the ma
tionai government, It is illogical that forty
five lesser soyereignties should create the
machines thai are to do the business of the
greater sovereignty.
A National Incorporation Act,
In a national Incorporation act we should
guard against CONGRATULATIONS by proyid-
ing that no. stock or bond issue should be
made either for consolidation, purchase,
construction, Improvement or extension
without the approval Of the interstate COM
merce commission.
we should provide for a fair rate Of in
terest on such capitalization by rates to be
liked by the carriers. subject to revision by
the commission, on complaint to inc
qualities, excess in rates and preferences;
no dividend TO be permitted In excess Of
such rate of interest. and any excess of in
come to be applied to betterments, increa Sc
of wages, or reduction In rates. and, on the
other hand no reduction in rates to be
made by the commission which would i'm
peril such dividends.
we should provide q simple system Of
taxation which would leave nothing to dis
erection. The power to exempt these cor
porations as national instrumentalities from
all taxation includes. of course, the power
to provide one simple national system of
taxation in the place of forty-f1ve different
state systems. The simplest tax would be
a percentage tax on gros or net receipts in
lieu OF all other taxes on the corporation
or it's bond and stock holders.
THE tax could be collected by the
t.enal government and distributed among
the states affected, or entrusted to such
states for collection by some common rule
which would leave nothing to local discre
ton.
Such legislation would put the railroads
out of poiitic2, state and national; would
protect the interests of investor and ship
per alike. and would not interfere with the
initiative and enterprise which have given
us fhe bayf railYOa6 ayatern IN lao world