The Washington herald., 1907-05-28
TUESDAY. MAY 2S. 1907.
Where Regulation Is Needed.

That representatives. Of great railroad
interests. seeking a merger Of millions Of
railroad capital and the operation Of
thousands of miles Of railway under "A
common management. should sound the
government with "A view 20 ascertaining
whether their project would be opposed or
permitted by Federal authority signifies
something more than the exercise Of or
dinary prudence. It evidences as we'll
the new point of view from which rail-
way fnanciers and managers are coming
20 resard governmental regulation-the
view that the public interest with which
the ownership and operation of the high
ways Of commerce is affected can no longer
be safely ignored. nor can the laws in
tended 20 secure that public interest be
nullifad or evaded without grave damage
10 railroad properties Public opinion on
these matters as it now stands. is too
serious q force 20 be disregardcd, even by
the greatest Of our railway magnates:
and so We find them trying 10 get on the
right side Of the law, which is the con-
crete expression OF public opinion. be-
fore carrying into effect a gigantic
scheme of railway consolidation.
In any rational plan Of governmental
regulation Of railroads. such q merger Of
railroad interests rs was described in The
Washington Herald of Monday would be
submitted % the Interstate Commerce
Commission. or some similar body. for ap-
proval or rejection. The proposed issues Of
stock. the amount and character Of the
capitalization, the objects sought by the
consolidation. the rates TO be charged for
service. and the facilities afforded by
common management would he all sub
jected 20 official scrutiny II the merger
were found TO be for the best interests Of
the public. If il We're designed TO promote
economy and efficiency I'm operation. if
the new issues Of stock were for Iegiti-
mate purposes. then We doubt not that.
as matter Of public policy. the merger
would be approved. Railway consolida-
ton. in itself. is not so much to be feared
as that # may be used for purposes inim-
ical TO the people. Where it contributes
20 better public service, 10 cheaper and
quicker and more convenient transpor-
tation. It is not likely 10 meet with seri-
Gus opposition from any source Proper
governmental regulation may transform
even a monopoly into an efficient and use
ful public servant.
But there is no such tribunal rs that we
have described. SO the promoters Of the
merger have done the next best thing.
They have tentatively consulted with the
existing regulative body, which has really
no authority to approve or disapprove. It
IS not clear tISt the Interstate Commerce
Commission can do anything fin the prem
isas, but it is quite CLEAR what il ought to
be empowered TO do. Il ought 20 have pow
ct 20 prevent the merger If it threatened
danger 20 the public veal. or 20 permit It
If it promised cheaper or more efficient
railway service We shall not have the
full measure Of railway control that the
public is entitled 20 until there IS power
somewhere to DO just that; and that rail
way men are willing to submit to il. and
Will I'm the end find it advantageous 10
them, IS sufficiently demonstrated. we
think, by the precautions being taken by
great railway interests to get govern
mental sanction. in however slight a
measure for their contemplated eonsol-
dation Of connecting transportation sys-
tens.