Daily press. [volume] (Newport News, Va.) 1896-current, 1907-03-23
SATURDAY, MARCH 23, 1907.
FEDERAL FRANCHISES.

FEDERAL FRANCHISES.
Instead OF federal license for in
terstate corporations, under which the
government may wise stock issue, the
proposal now being considered by the
Interstate Commerce Commission is
to require roads that are to be known
as good roads" to take out national
franchises. This Is to be one of the
steps to be taken to place the rail
roads under complete regulation by
the federal government and lift them
out of dual regulation by the States
through which they pass.
1t is regarded here as the biggest
proposal yet made to the country
1t may Involve an amendment to the
Constitution, which is very diff.
cult thing to bring about. If it can
he done without this the railroads are
expected to bow the knee to the fed
eral government before the end of the
next session of Congress in return
for protection from the States, and
rs an additional advantage they will
K get sort of 20. X" that their securi.
ties are not watered.
Interstate railroads conducted bust
ness in the absence of comprehensive
federal statutes prior to 1866. This
was by suffrance, the government up
to that time not having given much
consideration TO the regulation of in
terstate traffic, There have been sew
eral interstate commerce acts since
1866, each piece of legislation being
s more drastic as the necessity for
closer supervision became more ap.
parent
While tho present interstate com.
Z merce act was under discussion Sen
ator Newlands of Nevada attracted
4 some attention by his persistence in
nrglng n national charter act for rail.
roads. He had worked out his scheme
Y in considerable detail ana covered in
8 1t protection against overcapitaliZa-
4 tion and other evils which are now
forcing themselves To the front His
proposition did not attract serious at
4 tention. Now that the railroads find
4 that State legislators are as active In
Y enacting stringent corrective legis-
lation as the President ever asked
OF Congress the presidents of these
i corporations are insisting that the
j federal government should save the
railroads from State Legislatures by
taking such control that the regula
ton of interstate railroads will be by
the federal government only.
The State legislation which rail
8 roads at present desire to avoid is the
imposition of maximum two-cen,
mileage rate, which is declared to be
Gonfiscatory The railroads ask thai
the federal government adopt such
measures as to limit restrictions in
the rate.making line to Just and rea
Il sonable" rates, to be determined by
q the Interstate Commerce Commission
They seem for the moment to have
been driven to such extremities as t.
SsshSSeiu any leueTal control short oil
ownership preferable IL
liability to State laws.
ssA law requiring interstate railroad.
81 to take out national franchises would
IN the opinion OF experts of the Inter
state Commerce Commission, make
the roads amenable and responsible
t to such conditions as the federal gov
n eminent might impose, and would re
move them from regulation by Stat,
lSegislatpres. This is the idea pre-
yailing at present among those mos
:s,s actlve In working out the details o
inc plan, and is the object aimed a
by the railroads.