The Washington times., 1907-10-27
NENLANDS URGES
RAILWAY CONTROL
Suggests National Confer
ence Be Called to Con-
slider Transportation
Problems.
Advises Construction of
WaterWayS-Federal Su-
peTViSion Accredited
These.

Senator Newlands- Of Nevada, an ad-
vOCate Of Federal franchises for cor
porations, and chairman OF tne Inland
Waterways Commission, explained in
detail last night the purposes Of the
commission, and suggested that the
President call a conference in Washing
ton of the various interests connected
with the transportation question. with a
view to restoring the confidence of in
vestors.
He spoke at the first Of the fall Sc
ries Of montaly meetings Of the Univer-
sity Club.
The Senator said that the lowering Of
railway rates by some State Legisla-
Tures and the acquisition of too much
power over the Legislatures of other
states by the railway corporations was
Jhe chief cause Of the trouble which
1las resulted so disastrOusly for vari-
'Ous banking institutions. He made ne
assertion that these two conditions were
directly responsible for the $1,000 000, 600
loss in stock values this year, since they
caused stockholders, especially I'm for
seign countries, to lose confidence, and
10 sell at great losses.
Time to Drop Reprisals.
Passing on to the purpose of the In
land Waterways Commission, Mr.. New
bands declared that Congress Will never
ftake up this question in any adequate
sway until instructed by public opinion.
HE suggested that a national conference
he called and that governors and mem
Fbers of public service commissions be
In the conference. He urged that the
Fcountry should drop excitement, re-
lprisal, and retaliation" and get down
no the question whether mergers should
he broken up or properly controlled.
Confidence in American corporations
has been shaken, both here and abroad, ="
said the Senator. Investors are alarmed,
and improvements absolutely necessary
10 the transportation Of the country are
held up.
Enlist Nation and States.
1.-The nation and the States have
knocked together the heads of the rail-
roads in such fashion as to make them
realize that they are simply public
agents. and they will come TO a confer
'ence in a much more ConcilIatOry mood
than heretofore. I believe in construc-
tive, rather than in punitive or retalia-
tory, action. We should look 10 the
future and organize a transportation
system. embracing both the railways
and the waterways, which will enlist
the harmonious action of the nation and
the States.
president Roosevelt is right in saying
that the great problem Of the future is
TO find sovereign for these giant rail-
way mergers. whose operations recch
over our entire country and out 10 for
eign countries. Combination is part
OF the economic development of trans.
portation.
The thing complained of is not the
fact of combination, but the methods of
combination, unTestrained by adequate
laws and fruitful Of over-capitalization.
frauds on stockholders, and imposition
on shippers.
Hard on New Jersey.
shall we break up these mergers and
resolve them into their integral parts.
bounded and circumscribed in their
operations by State lines? This would
be a national calamity, a grlevOus TO
the public as to the railroads. What
sovereign power, then, is 20 create and
sanction these mergers? New Jersey? /
Proper centrol of combination can
never be accomplished so long as we
permit corporations to resort to the
States of least public virtue for their
powers. /
'"rhe question is not one of partisan
politics. AS a Democrat. l believe in
local self-gOvernment and in the fun
and beneficial exercise Of all State
powers: but il IS equally good Demo
cratic doctrine that the powers granted |
10 the nation should be fully exercised /
In the interest of all the people.
''The power of the nation is clear |
1T should assume the powers which |
States like New Jersey have usurped /
and misuscd. To such action the term |
decentralization cannot be properly i'm |
spued, the union Of action contemplated 1
by the Constitution cannot, certainly, /
DE regarded as Capitalization or usurp- l
RtiOn of power.
Waterways Like Railways.
att is curious how divided public sen
'8Inent seepls 20 be as 70 the control of /
railways, Ind how united IL seems to 4
DE as to the control of the waterways. 4
What difference IS there between a |
great Interstate river and the great in 1
banks. so far as nahOEal powers are /
CouCerned2 The Constitution contains /
nothing about waterways or railways; |
It simply gives Congress the power to
regulate interstate and foreign COM
meTce And vet, under this power, the 1
States most jealous as to the exercise
Of national powers regarding railways
are demanding the fullest exercise Of
the national power IN the way of the
development and control CT our water
ways