Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-01-11
CONTROL OF RAIL WAYS
Senator NewlaDds Favors a
National Incorporation Act.
ADDRESSES THE SENATE
URGES LARGER AUTHORITY FOR
INTERSTATE COMMISSION.
Would Have Rates So Regulated That
Companies Would Be Allowed
Fair Profit.
ADDRESSES THE SENATE

Mr.. Elkins today presented, and the Sem
ate passed, resolution calling On the IN
terstate commerce commission for informa-
ton giving the total number Of cases that
have been before the commission. The
resolution asks for specific information as
to the number OF complaints made to the
commission by railroad companies, the
number Of complaints Of excess
sive rates and of unjust determinations
and also the complaints of violation of
published rates. 1t asks also for informa-
ton in each case as to the number of de-
cisions. the number of appeals to the courts
and the number of afflrmato or reversals
by the courts in cases of appeal.
Control Of the Railways.
Mr.. Newlands then addressed the Senate
on the joint resolution which he introduced
some days ago. which provides for g COM
mission with instructions to frame ma
tionai incorporation act for the construc-
ton and consolidating of railroads engaged
in interstate commerce.
1.-The time has now come to ignore state
lines as to the construction, operation and
management of the Interstate railroads OF
the country" he said. THE public inter-
est requires 1t and the power to accomplish
1t Is contained in the clause OF the federal
Constitution which gives Congress the pow
er to regulate interstate and foreign COM
merce. While this power has never been
fully exercised. it belongs without question
to Congress. Its exercise involves no con-
tradiction of the democratic views as to the
reserved powers Of the state and local self
government
lit ise Just as democratic" he declared,
ito insist upon the full and complete exer-
else Of national powers under the Constitu-
ton as 1t Is to insist upon the rights re-
served to the states. The exercise of the
national
use OF all instrumentalities necessary to
carry that power into full operation and,
also, absolute freedom from obstructive
and destructive legislation by the states"
He therefore held that because of the
relations Of railroads to interstate COM
merce and the jurisdiction of Congress
over interstate commerce. Congress had a
clear right to exempt interstate railroads
Incorporated under national legislation from
all state or local taxation and from the
regulation of rates by such states.
Urges Increase Of Authority.
He advocated an increase of the authority
of the interstate commerce commission
SO as to authorize 1t to regulate
rates, and said the consolidation Of the con-
troll Of the railroads now exercised by all
the states In the national commission
would have the very desirable effect Of de-
Stroying rebates. Such control would, he
also contended, be advantageous to the
railroads In that 1t would relieve them from
the expressions OF varying conditions of
popular judgment and take them out OF
politics.
The only way to- get them out OF poll
tics" he declared. lis to take away their
interest In politics by making taxes
mathematical certainty. by providing for a
fixed and just return upon their capital
and by unifying the control Of their opera
tions in body OF great character and dig
nifty, such as 1 believe the Interstate COM
merce commissions to be-.
He advocated that the powers of the in
terstate commerce commission be enlarged
to give them authority over freight and pas
Senger rates, and Ito guarantee a Just ex-
railroads under the jurisdiction of the inter-
state commerce commission should be val
ued by that body and the rates SO regulated
to yield a net income of not less than
four per cent on such yaluat ton. An arbi-
trary limitation of she dividends to low
rate might impair initiative of those in
terested In railroad corporations and might
prevent existing railroads from coming I'M
der the operation of the national act, and,
therefore, the commission should have the
power to vary the return according to the
risk involved IN the enterprise, with view
to meeting the varying conditions of inter
est rates throughout the country"
Railroad Abuses.
Taking I'D the subject of railroad rebates
and discrimination Senator Newlands said:
The abuses of railroads have been of three
kinds: First dishonest construction, with
unjust profits to construction companies;
second. dishonest management. with the
directors the worst enemies of the stock
holders. and. third. the era Of rebates. pref
erences. and determinations. The first two
have passed by but we are now In the midst
Of the third. Rebates, preferences and dis
ordinations have sometimes been DELHI
erateiy promoted by the railway managers
In the interest of certain communities and
are also interested in the ownership of such
railroads. This system has been the source
and the strength of the great combinations
and trusts of the country and has done
more to accomplish an enormous concen-
tration OF wealth In the hands of the few,
than any other agency By unifying the
railroads Of the country into scientific sys-
TENS Under national incornOratinn act