Los Angeles herald., 1907-06-09

congress They are the Union Pacific,
! Central Pacific, Kansas Pacific, North
ern Pacific and Texas Pacific, and they
are all operated in systems that em-
brace state chartered roads. Beyond
this systems have been constructed Of
roads chartered by different states
and are operated regardless of state
boundaries. All the states have passed
laws authorizing their roads to CONSOLE
date or to be operated with the roads
of states adjacent, removing them from
the category of state controlled cor
porations and making them Interstate
and national. Railroad transportation
is too immense and in which the whole
| people are too much interested to be
embarrassed by state lines and laws.
| Preparations are being made it is
said. to have the power of Congress
| defined by the courts, to have the queS-
ton settled whether the federal gov
ernment has the right TO wholly con-
troll railroad transportation to the ex-
clusion of the states. There is no rail-
road in the country that does not in
directly or remotely participate in in
terstate traffic. What the country
wants is transportation that is ample
! the service efficient, safe, impartial and
as little expensive as practicable. This
can be best assured through control
and regulation by single power.
The question arises how can unity
of control be effected under a dual
system of government, assuming that
no other is constitutional? Two meth
DDS or plans have been suggested. AS
congress has absolute power over in
terstate transportation 1t is proposed
that it shall grant charter to COM
pany to take over all the roads of the
nation on the basis of present value or
the present cost of reproduction, which
would be fair, and providing that the
companies which do not turn their
properties over on those terms shall
be prohibited from participating in in
terstate transportation, the charter to
prescribe the terms and conditions un-
der which the business shall be con-
Quoted, and that for violation of them
the franchise shall be forfeited or re-
vocable. 1t would effectually prevent
abuses and protect the public against
exploitation. The remedy would be
simple and could be summarily ex-
ecuted.
Another suggestion is that no rail-
road shall engage in interstate traffic
without license from the interstate
commerce commission or the depart
ment of commerce and labor, which
would impose terms that would re-
strain them from granting rebates, in
dulging In any kind of discrimination
and compel the maintenance of rea-
sonable equipment for rendering such
service as would meet the ordinary re-
quirements of the public. The license
might specify the rates that should
be charged, reserving the right to in
crease or reduce as new conditions
would seem to justify.
The time was when the country ex-
pected much benefit from railroad COM
petition, and while in that belief the
construction of multiplicity of roads
was enco rt.ged and literally aided.
The people have long since been re-
lieved of that delusion. Combinations
superseded competition. While the law
did not prohibit pooling, it was re-
sorted to, or if not that, traffic agree
ments, and the railroads were as un-
faithful to them as to the interests of
the public. They were false to each
other. Combinations may be prohibited
on the ground that they destroy ambi-
tion, but common rates between COM
mon points will be tacitly made, con-
currence of opinion as to what rates
should be will marvelously appear.
There has been alarm expressed at
the consolidation or systemization of
roads, on the ground that it avoids
competition and is intended to main
tain higher rates. Already the rail-
roads of the country are chiefly in
about eighteen systems, and it would
be better were they all in one. 1t would
render their regulation easier and SIM
plify rate making. Rates could then
be made the same per mile in all parts
of the country, and only high enough
to pay necessary operating expenses,
including necessary improvements, and
"a fixed moderate income to the capital,
based on present values. 1t would make
no difference whether this or that
branch contributes its share, the ques-
ton would be, Does the whole sys-
produce the required revenue?
Such consolidation or systemization
would avoid throat cutting competition,
and be a protection against exploita-
tion of the public. 1t would reduce
many expenses in ways that need not
be stated in detail. and avoid freight