Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-03-28
RA1LRoAps AND THE sr ATEs.

The newly manifested desire of the
railroads of the country to escape the
requirements of state legislative en-
actments by seeking an asylum in con-
troll and regulation by the federal gov
eminent is finding many distinguished
advocates. Senator Newlands of Ne
vada, whose former close association
with the affairs of the Southern Pacific
is well remembered, proposes that the
capitalization, stock and bond issues Of
the railroads and their relations with
their employees and the public shall be
made subject to the approval of the
Interstate Commerce commission and
in return their stocks and bonds be
freed from state taxation. This, the
senator urges zealously, would put an
end to conflicting legislation by various
states on the question Of taxing bonds
and capital stock and would remove
one Of the present chief sources of irri-
tation between the railroads and states.
Martin A. Knapp, the veteran chair
man Of the Interstate Commerce com
mission, also has taken a stand against
the prevailing activity in state legisla-
lures on the question of railway legis-
lation and expresses his belief that
1.-THE present temper of the public mind
operates to check and delay, If not to
prevent, an increase Of railway facili-
ties when that increase is of the great
est Importance" He proposes as a
remedy for existing conditions "the re-
incorporation of our railroads under an
act of congress or some plan of fed
eral license that, although 1t would not
limit the actual power of the states,
nevertheless would have a potent infiu-
ence in preventing improper legislation
by the states and bring state laws into
harmony with national laws. Mani
festly such control as the states may
continue to exercise must be subordi-
mated to that larger control which be-
longs to the federal government"
Senator Newlands and Chairman
Knapp both support the contention ad-
vanced by Mr.. Yoakum Of the Rock
Island that the railroad securities must
not be allowed to suffer because of the
rights of the stockholders and the small
investors. Mr.. Knapp frankly states
that while these securities represent
more or less water they are not in the
hands OF the men really responsible for
the fictitious values. but have passed
over to honest investors who have
bought in good faith. All this may be
true, but the fact remains that the
manipulation OF rates and other deals
necessary to meet payments on these
inflated values places the burden on
the patrons and shippers of the coun-
try.
The railroad managers are now de
claring that they are tired Of fighting
of state legislation. This is but an
other form OF admitting that they ART
no longer able 10 control state legisla
lures, because the public conscience has
been aroused and has become resentfu
of railroad methods formerly over
looked or endured as a matter OF course
While enlarged federal control OF inter
state commerce may be salutary, 4
win not necessarily Justify exemption
from legislation by the states. Thu
courts are still open to railroads, VIII,
are familiar with the maths they have
worn to IT, II the state laws are un
! constitutional. the railroads know how