New-York tribune., 1911-11-16
Government Ownership if Regu.
Iation Fails. Commerce Court
Judge Asserts.
COMPETITION BAD, HE SAYS
Also Predicts General Wage In
crease as a Necessity and
Fears Menace of Po-
litical Influence.
rBy Telegraph to The Tribune J

CITY. Martin A. Knapp, presiding judge
of the limited States Court OF Commerce.
to-day told a large audience In the Hous-
ton Club of the University of Pennsyl-
vania that a crisis is coming which VIII
test the policy of the governments rate
regulation system, and that II II faiis
governmental ownership will be the only
alternative. This crisis will come within
a generation, he said. He asserted also
that there must be a general wage IN
crease for all railroad men and for other
workers, that the present system OF
railroad competition is i'll advised ana
that the railroads should be permitted TO
make uniformly profitable rates and de-
stroy competition.
It was the first of a series Of three
lectures on THE Regulation OF Inter
state Commerce." The second Of these
will be delivered tomorrow at 4:3o. IN
Houston Hall. The topic Is The Reia-
tions OF Interstate Carriers with Their
Employees and with Each Other" AT
to-day's discourse a distinguished au-
dience of railroad officials were present.
Justice Knapp was applauded enthusias-
tically by those officials. He said in part:
.T direct my attention in this dis
course solely to the agencies or COM
merce-the railroads. Why should car
riers be regulated? The right goes back
to primeval days. Man in those times
had ways of passage from one hunting
field to another, from his rude abode TO
the places where he found his food and
his sport.
when man advanced in civilization.
the right Of way was one or the hrst
fixed by ancient custom and finally by
law. Then came the establishment of the
highway and the street. 1t may well be
said that the street is the foundation or
the state.
Government hos three important
functions: To give security 10 the per-
son. protection of property and assur-
ance of equal use of the highways
Goes Further than Henry George.
Henry George, the brilliant and not
altogether mistaken thinker, declared
once: What difference is there between
a man owning all the land and owning
all the people? For if he owns the
land he will own the people who are
forced 10 dwell thereon | amend that
bv saying that the person who owns the
highways owns both the land ana the
people
There is an inherent right TO equal
use of the highways and the rise or the
great railway systems has not altered
this in the slightest It is regarded as
settled. therefore, that the large ship
ner must not be favored over the small
sbipper: that communities may not sur
fer from discrimination in rates; that
schedules may be examined by the gov
ernment: that rebating and other EVIL
nractices shah be punished, and that un-
fair rates may be changed.
In the wisdom Of our legislatures the
Giving of rebate and special privileges
has been made a criminal misdemeanor.
It's practice was once prevalent. 1t IS
now as rare as forgery or burglary.
"Our whole national future depends
unon the solution of these problems OK
Interstate commerce. If we are 10 go
foruard the revenues of the railroads
should be sufficient 10 pay such return
upon honest investment that capltal may
he attracted for the construction ana
extensio. Of railways and the develop
ment of regions that await us. The rev.
enues should be large enough 70 pay G1
o,,nloves wages which will make ma
tional prosperity
Refers to Government Ownership.
II was here that Justice Knapp spoke
Of the possibility of government owner
shin in the future and that the crisis IL
the country's development through the
railroads would be reached within the
next generation. He said
"Our method of dealing with the rail-
roads is still In the experimental stage.
Won students of this great university
will know the result after we nave
nassed on. | see serious dangers In the
nresent condition. Congress Is con-
stantly agitated. So are the legNla'-
,.os % al, the states. Forty state COM
missions are wrestling with the sub
iect. There is the menace of stubborn
conflict between the railroads and their
two million organized employees. Finally
,bare Is a menace of political influence.
II the regulation which is now sought
70 be enforced shall be found inade-
ouate government ownership OF the
railroads is the only alternative
Tracing the history of railroad rate
legislation Judge Knapp said:
THE regulation of interstate conn
merce Is one OF the most commanding
and certainly one Of the most conspicu-
ors subjects now before the public. The
nrovision I'm the federal Constitution
o1vinq "a Congress the right TO regulate
commerce with foreign nations. between
states and with the Indian tribes. has
not only stood the test of past genera
tiors. but appears to be adequate for our
marvcnously changed modern conditions.
THE history of litigation based upon
this constitutional provision is illumi'
Mating The first case 10 come before
the United States Supreme Court upon
this subject was not reached until 1894.
one-third OF a century after the adop-
ton of the Constitution. Until lSi0
only four cases came before that til.