The Washington times., 1913-10-29
CAPITAL IS SCORED
FOR RAIL WAY ILLS
Committee of Association Lays
Mismanagement at Money
ed Mems Door.

A scathing attack on the big finan-
cial interests of the country, alleging
the misnanagement of railroad enter
prises, was made by the railroad capi-
talization committee of the National
Association of Railway Commissioners,
in session here, today. The committee
laid the so-cafled mismanagement of
the railway systems directly at the
door of the moneyed men. The COM
mittee recommended the immediate
passage by Congress Of an act giving
the Interstate Commerce Commission
power to regulate railway securities,
stocks, and bonds Of interstate carriers.
Kentuckian Opposes Capitalization
One of the most important discussions
of the day was that of Laurence B.
Firm. chairman of the Kentucky Rail-
road Commission, who spoke on the
question OF Should Congress Extend
the Power Of the Federal Government
to the Regulation of Intra-state
Rates?'
He declared that il Will require the
full strength of both State and Federal
Governments to cope with the ever-in-
creasing strength, power and wealth
of public service corporations. But, y
he continued, with wise counsel and
honest purpose, 1t is possible to steer
between the Scylla of federation and
the Charybdis of an overzealous State
government ..--.
"These considerations move me to
wonder why any patriotic citizen should
favor policies or principles which would
directly or indirectly thwart either gov
ernment in the full and complete exer-
else of every constitutional authority
which each possesses. 10
with a heart filed with love for the
sacred traditions of our nation, with
an anxious soul fearful that the liberty
we enjoy as heritage from the Faith
ers will be lessened when the strongest
government is farthest from the peo-
pie. and the local government impotent
to deal with its domestic affairs; i, for
one, pray that the evil day of centrali-
zation Of the governmental power shall
rot be permanently visited upon me,
my posterity or my fellow-country-
men,"
The commissions orders regulate inter-
state rates solely. and 1t was pointed
out to the convention by Martin 8.
Decker, of New York, chairman Of the
press rates. that there is need of a
corresponding revision Of short-haul
rates within the States which the State
commissions must adjust
Commissioner Thorne OF Iowa sup
ported the motion for a committee rep
resenting each State, on condition that
its findings should not be held binding
on the States.
Pawn of Manipulators.
"The finances Of all utilities, but par
ticularly of the tremendous agencies en-
gagged in interstate commerce, have been
q pawn of the manipulators who demon
strably are more interested in gain than
in proper service to the public" said
the report submitted by Chairman John
NJ. Eshleman of the California Rail-
road Commission: Commissioner James
s Harlan, Of the Interstate Commerce
Commission; H. F. Bartine, of the Ne
vGda comm. ssion; Frank ]. Miller. Of
the Oregon commission; William r. Will
cox, of the New York Public Service
Con. mission, and ]. J. Meredith, of the
Louisiana commission.
The great financial interests, and not
the active railroad managers, have been
found to be responsible for most of the
mismanagement of railroad enterprises"
they declared
The report decried the money-thirst
Of these magnates, and declared such
persons unfit to control the comfort,
safety and lives of American railway
patrons.
control We're as follows: Limitation of
purposes for which stock and bonds are
issued authority to commissions to COM
pei roads to devote sales to purposes for
which issued no issues without positive
commission approval; no Limitation in
the proposed statute as to the amount
for which stocks or bonds shall be sold
power to impose conditions on issues
regulation of such issues by the Inter-
state Commerce Commission.