Omaha daily bee., 1907-05-07
CONTROL OF The RAILROADS
Judge Farrar Points out Authority
for Complete Congregational
Control.

! WASHINGTON. May 6-That the United
states has full power under the constitu-
| ton to govern and control railroad cor
porations Is declared by Judge e. II. Far
| rar Of New Orleans, in a letter addressed
to President Roosevelt. The railroads, he
says, are creatures Of the nation. This
fact places them under absolute rule Of
the nation and has the dual result both of
regulating the roads and protecting them
from any unjust exactions by The states.
The roads also can be protected, he says,
against the prejudice of the local jury by
giving them the right to sue and be sued
in the federal courts. The nation also
should provide the manner and extent
which the roads shall be taxed by the
states.
Judge Farrar discussed his letter yester-
day with the president, who requested
that he give the letter to the public for
information and discussion. Justice Farrar
consented.
The letter. in part, is as follows:
| The transportation problem in this coun-
! try has assumed such acute phase that
| long as there is dividend control over the
! great public highways and the corpora
can be reached. AS quasi public corpora
! tlons they are, by their very nature, sub
/ JGGN W pubic COnIFOl ana EekulhllOns OhANg
| Of control and regulation Is essential to
their welfare and efficiency, and essential
! TO the welfare Of the public to whose serv-
In my opinion, as a humble student of
| the constitution, and as a democrat be
itGI 65Ig to the schS9I Of fair cPnstruc-
! stitutlon Of the United States to take full,
absolute and exclusive control Of the whole
granted in paragraph I, of section viii, Of
article l. OF the constitution, which grants
| to the congress power Ito establish post
The congress can adopt such means for
the execution of this granted power as In
its judgment are convenient, necessary and
] proper. The formation of corporations as
| means for executing the powers of the
| government of the United States, is a con-
\ stitutionRl exercise Of the federal powers.
When such a power is exercised by the
| federal government the corporations or
| ganized under it's authority are instruments
| designed to be used to aid the government
| In the administration of a branch Of the
public service; and the congress, which Is
! creation, having brought them into exist
ence, the states can exercise no control
| over them. nor in any way AFFECT their
| operations, except so far as the congress
may see proper to permit.
! These corporations being creatures Of the
] United states and instrumentalities pro
vided by It for the proper and convenient
| performance Of its governmental func-
lions. the United States can regulate them
as follows:
/. Their mode Of Organization and man
agement.
z Their capital stocks and their creation
of debt and the Issuance Of securities.
3. Their operations down to the remotest
1. The qualifications Of those employees
| such as engineers firemen, conductors, In
| spectors, brakemen, telegraph operators
! etc, on whose capacity depends the safety
of life and property. All OF these men can
! be subjected to government control and
| license, and for incapacity and misconduct
| their licenses may be revoked.
8. The misconduct OF officials and en-
ployes, in the performance OF their duties,
| can be restrained by criminal statutes.
| 8. These corporations can be shielded
from all state interferences and control.
! T. They can be protected from the pref
udice of the local jury and the so per cent
damage lawyer by giving them the right to
sue and be sued in the United States
s. They can be protected from all state
county and municipal taxation by provis-
ions liking how far and in what manner
and to what extent they may be taxed by
the states and their subdivisions.
| 0. The relations OF their employees to each
other, as fellow servants, can be definitely
settled on scientific principles of the grada-
ton of authority.
10. Their duties in regard to settling claims
against them for lost or damaged freight
can be regulated to the reasonable salts
faction OF the public.
| IL The rates which they charge for pas
| senger and freight service can be regulated
| and ell determinations abolished.
! IA Their Interchange Of cara, freghts and
passengers with each other can be regu-
lated
i8. All agreements they may make with
! each other, in regard to Joint rates and
pooling agreements can be controlled.
In order to get this absolute control the
power TO organize these corporations must
DO pitched on some grant OF power In the
constitution which is not only exclusive
| The power to regulate commerce among the
! states and with foreign nations is too
narrow for such purposes. because there Is
| an immense mass OF commerce in this
country which is entirely beyond control
| of congress.
! But the power to establish post roads is
| co-extensive with the limits of the United
| States It enters into every remote corner
! OF the territory of the United States and
| extends from every point within the terri
/ tory to every other point therein. II gives
! the government power to establish a post
! road from every point to every other point;
TO nationalist these roads; to provide all
| the terms and conditions for their use and
! operation and TO create corporations as In
| gtrumentS TO facilitate the government in
the performance Of this exclusive function.
| I believe the authors Of the constitution,
in contemplation Of the vast distances
separating the parts OF this republic from
each other granted this exclusive power
to the federal government in the eXbectn-
ton and belief that the whole country
| structed and operated by the central gov
eminent In the full knowledge that such
highways, while having for their primary
object the transportation of the mails,
would necessarily be used, secondarily and
incidentally for the transportation of
immemorial the stage coach which carried
the mail also carried passengers and
freight.