New-York tribune., 1907-10-27
CITES NATIONS POWER.
REMEDY BY NEWLANDS
National Transportation Conference
to Restore Confidence.

Washington, Oct 26.-The summoning by
President Roosevelt of a national conference Of
the various interests connected with the trans
portation question. with view to restoring the
confidence Of investors. suggested in
speech before the University Club here tonight
by Senator Newlands. the vice-chairTnan Of the
Inland Waterways Commission. Senator New
lands has Just returned from the trip down the
Mississippi with the President and the commits
sion.
Confidence in American corporations has
been shaken. both here and abroad said the
Senator. Investors are alarmed. and improve
ments absolutely necessary to the transportation
of the country held up. When Congress
meets there will be many plans for relief. but
that body viii never take Up this question in
any adequate way until instructed by public
opinion.
we should Immediately have conference at
washington devoted exclusively to the trans
portation question in its broadest aspects and
composed of men expert in the financing. opera
ton and control Of transportation. including the
governors of states and members of public SER
vice commissions.
After full debate and deliberation the coun-
try will be astonished TO find how few the points
of difference arc between the transportation
managers on the one side and the public on the
other. The nation and the states have knocked
together the nedQS or lne railroads. in such
fashion TO make them realize that they are
simply public agents and they will come 20
such conference in much more conciliatory
mood than heretofore.
Il believe in constructive rather than in puni-
tive or retaliatOry action. We should look to
the future, and organize a transportation sys-
TEN embracing both the railways and the water
ways which will enlist the harmonious action of
the nation and the states If a proper system
were created most of the evils now complained
of would disappear.
SAFEGUARDING OF ALL RIGHTS
"A system Of transportation could be easily
devised which would enlist the best powers of
the national government without infringing
upon the powers Of the states-one which would
protect the railway investors the railway en-
ployes the shippers and the public in their re-
spective rights and the states in all their legti-
mate powers"
Senator Newlands continued follows:
President Roosevelt is right in saying that the
great problem of the future is to find a sover-
eiGn for these giant railway mergers whose
operations reach over our entire country and out
10 foreign countries. Combination is a part OF
the economic development of transportation A
perfect transportation system involves, so far
as possible. one control from shipper to con-
slgnee, and this can only be accomplished by
great transportation lines, operating regardless
of state or national boundaries. which will
utilize the railways. the rivers and the ocean nv
methods of carriage adapted TO each The thing
complained Of is not the fact of combination but
the methods of Combination, unrestrained by
adequate laws and fruitful of over Capitalization
frauds stockholders and impositiOn on shin
perS.
Shall we break up these mergers and resolve
them INTO their integral parts bounded and cir
cumscrbed In thelr operations by state lines?
This would be a national calamity as grievous
to the public to the railroads
What sovereign power. then, is to create and
sanction THESE mergers? New JerSeV2
control of combination never be accom-
plished so long as we permit corporations to
resort to the states of least public virtue for
their powers. Is it not clear that united action
Is necessary, and that united action can only be
accomplished in the constitutional way-through
the union of the states represented by Congress?
The question is not one of partisan politics
As a Democrat / believe in local self govern
ment and in the full and beneficial exercise of
all state powers but it is equally good Demo-
cratic doctrine that the powers granted to the
nation should be fully exercised in the interest
of all the people.
NATIONS POWER CLEAR.
The primary purpose of the formation of the
Union to promote interstate and foreign
commerce and 10 give the regulation of both
to the nation. Three -fourths of the business of
these giant mergers is interstate The power.
therefore, of the nation is clear. II should as
sumo the powers which states like New Jersey
have usurped and misused.
To such action the term "centralization' cannot
be properly applied The union of action con-
templated by the Constitution cannot certainly
be regarded as Capitalization or usurpation of
power
We should drop excitement, reprsal and
talation and get down to the question whether
these mergers shall be broken up and resolved
into their original elements of purely state rail-
roads or whether consolidation, properly con-
trolled. shall be permitted. The latter can only
be wisely accomplished by the action of the
Congress of the United States. in which every
state in the Union is represented. and which,
under proper restriction as to control of capt.
tazation and profits and supervision of oper-
atons, can empower the great trunk lines to
meet in the fullest manner the demands of in
terstate and foreign commerce. Il
Such action need not in the least affect the