New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-06
NeWlands Makes Plea for
More Efficient Control
of Securities.
WOULD ENLARGE
COMMERCE BOARD
Better Cooperation Between
Nation and State Is Ain
Of Plan.
e,.m ne Ir.nune Burn.

Washington, Dec. 5.-The whole sys-
TEN Of railroad regulation and, incl
dentally, of methods of expansion now
used by American railroads may be
changed as a result of legislation by
the present Congress. Senator Francis
G. Newlands, chairman OF the Senate
Interstate Commerce Comittee, admit
ted to-day that he was heartily in IA
vor of a special commission, consisting
of members Of both houses OF Con-
gress, 70 90 into these questions ana
make q report on the best solution.
One of the greatest needs. in the
opinion Of Senator Newlands. is for
some method of national incorporation
for the big interstate railroads, so that
a railroad actually national IN its scope
would not be compelled TO adjust ITS
business to charter granted by
state.
Senator Newlsnds does not favor
uslrpation by the national government
of that measure of railroad control
now in the hands Of the states, but he
does believe that a system could be
worked out whereby the national and
state authorities would cooperate in
stead of working at cross purposes.
Would Control Securities.
One Of the incidents Of national in
corporation, Senator Newlands believes,
would be federal control Of securities:
There was passed by the last House OF
Representati and considered by the
Senate Interstate Commerce Commit
tee a bill for the scrutiny Of railroad
securities before their insurance by the
Interstate Commerce Commission. This
problem would be much simplifed, Sen
ator Newlands thinks, if the railroads
were INCORPORATED under Federal chart
ers. and if other changes were made,
notably by making it possible for the
Interstate Commerce Commission to
take over this work, possibly by IN
creasing its number.
zone of the principal problems which
would face a Joint commission TO study
the problem Of railroad regulation
said Senator Newlands to-day, would
be the changes in the Interstate Com
merce Commission. Every one who has
looked into the question knows that
the commission is fearfully overloaded
at present. and il is not a wise thing TO
overload any machine. By what plan
it would be better to relieve the COM
mission Of its present strain and make
il possible for the commission TO do the
enormous amount of additional work
which would be heaped on its shoulders
by requiring il 10 supervise railroad
security issues would be one of the in
teresting questions which could prob
ably be determined by a commission
such as ! have suggested.
Proposes Three Bodies.
zone of the plans proposed to reduce
the burden Of the Interstate Commerce
Commission is to have actually three
bodies. one for the East. another for
the Middle West and a third for the
Far West. The three small commits
sions could occasionally hold confer
ences and thus keep the guiding spirit
and ideas of ell the same.
another solution for the same prob
lem would be the division of the COM
mission, after first augmenting its
numbers, into committees which would
pass on different kinds Of subjects.
Thus one commission might have the
supervision Of railroad security issues,
another the question of advancing or
lowering rates, and so on down the line
through the functions performed by the
commission.
"Still another solution would be more
in line with the Difference I think
should be paid the sovereign states.
That would be for divisions Of the In
terstatc Commerce Commission TO be
assigned to the various states, or per-
haps groups of states. for the purpose
Of cooperating with the state railroad
regulating bodies, thus securing the
fullest measure Of cooperation and con-
troll between the state and Federal au-
thorites.
zone Of the most important Of all
points for consideration by such an in
Vestigating committee, however, would
be that Of national incorporation of in
terstate railroads. There is no reason
iu the world why the great railroad
systems OF this country should be
hard'capped by attempting to work out
their national functions under charters
which contemplate the operation OF a
small transportation line within the
state borders and in the drawing of
which there was usually no conception
Of the vast expansion which would oc-
cur.
Would Watch Expansion.
"ln this connection I want TO say that
we have not been sufficiently active in
supervising this expansion Of the rail-
roads. They have grown just "a they
pleased. with far more thought TO their
own profits and advantages than those
Of the people OF the country, while on
the other hand they have been handi-
capped b. inadequate charters, which
in many instances they have eyaded in
spirit. though keeping the letter.
"The Interstate Commerce Commits
sion. under a national charter system.
could watch the growth Of the rail
roads. shaping their consultations and
extensions with q view 10 the service