Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-01-13
Secretary Of the Navy Discusses
Question of Federal Control
of Railroads
HOLDS SUPERVISION NECESSARY
Three Methods of Railway Control
Are Suggested, One of Which Is De-
clared Inevitable = Leeaization Of
Pools Favorcd-Gist of His Arsu-
ment.

Washington, Jan. 13.-Paul Morton
secretary of the navy and formerly
vice president of the Atchison, Topeka
& Santa Fe Railroad Company, is the
rate question which will be published
In the outlook today. He in the outset
expressly disclaims writing as rep
resentative Of President Roosevelts
administration and says he speaks
merely as one with somewhat extensive
experience pertinent to an import
ant subject. The secretary in the ar
ticle says there are very few COM
plants against railroad rates per Sc
in the United States, the chief trouble
being with "the relation of rates as be-
tween markets." He says there are as
many rates that are too low as there
are rates which a court would decide
to he too high, and that either class
of rates may be equally disastrous to
communities. He expresses the opin-
ion that federal supervision of rail-
roads is necessary but adds that regu-
lation and protection should go to-
gether.
| He says that one Of the three things
following Is sure to take place In the
conduct of our railways:
| First-Legalization Of pools-the rest
| of the railroads to make enforceable
contracts between themselves as to a
division of earnings, so that they can
resist the temptations of big shippers
and be assured a fair share of the
business moving at stable rates, which
shall apply alike to all patrons.
Second--The further unification of
ownership, thereby delivering in time
the entire railway ownership OF the
country in the hands Of few indi-
viduals or one syndicate.
| Third-Government ownership, the
worst of the three evils" IL such
they may be called. In the opinion
of Mr.. Morton, government ownership
of our railroads would be the begin
ming OF industrial and political chaos
| He rather favors the first PROPOSE
ton with adequate provision to assure
rates being reasonable.
| AS to pending legislation, Mr.. Morton
| favors the continuance of the inter
state commerce commission in sub
stantially Its present form, saying:
Let it go on making its Investigations
and findings. If 1t finds a rate is I'M
reasonable (either too high or too low.
everything else being considered), let it
order such rates as 1t deems reason
able, and If the railroads do not make
them effective in thirty days then the
entire matter to be referred to a CEN
trail court Of transportation of, say,
three or five members, to be created
to especially consider and expedite all
questions Of interstate commerce so
far as the transportation of the coun-
try is concerned, it being understood
that this central court shall have pow
err to adjudicate in all such cases ex-
cept those involving constitutional
questions; and the findings of this
court in Interstate matters to be final.
II would urge severe punishments
for railroads or steamboat lines en-
gagged in interstate commerce which
by any device paid rebates, commits
sions or in any way afforded preferen-
tial rates. and the punishment should
be just as severe to shippers or COM
mission agents seeking or receiving
them. would permit the railroads to
divide their earnings or tonnage a
mong themselves, filing all such a
greements with the interstate COM
merce commission, and I would make
these contracts enforceable as between
the railroads. / would do this as an
insurance to the small shippers secur-
ing the lowest rate and as a protection
to the transportation companies a
gainst the vast tonnage and conse-
ouent temptation offered by the big
shippers, which SO frequently have
been used to secure inside rates. II
these contracts were illegal or against
public policy or unreasonably in res
traint of trade, then let them be re-
viewed by the same court OF COM
merce.
II would favor, even if it were nee
essary to have constitutional amend
ment to accomplish it, the declaration
that all transportation by rail was
hereafter to be considered interstate
commerce and subject only to federal
supervision, thereby relieving the
states Of this prerogative and estab-
fishing one central regulation, the
federal power.
T would make it impossible for 9th
ara than those directly interested as
shippers or commercial bodies to bring
suits for action under the Interstate
commerce act.
1T would favor an agitation and
shaping of public opinion that would
not tolerate such thing as prefer
entail rate, and would make it equally
sagreeable to grant or receive it. The
,,rasident's message on this subject
meets the views of all good citizens,
whether engaged in railroading or