The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1916-12-26
Only Way TO Meet Emergencies
OF Nation, Says A. ?. Thorn.
STATES RIGHTS PRESERVED
Principles Which Railways Hold Should
Govern Regulatory System In inter
ests of Public and the Roads-Com-
Pulsory System OF Federal lncorpo-
ration Favored.

ests Of national defense require that
control of railway lines should rest
with the federal government and not
with the states vas the claim ad
yanced by Alfred l.. Thorn, counsel
to the Railway Executives Advisory
Committee, In concluding his prelim
mary statement OF the case for the
railways before the Newlands Joint
Committee on Interstate Commerce.
I'VE must be efficient as a nation II
we are to deal successfully with our
national emergencies said Mr.. Thorn,
land we must appreciate that efficient
transportation IL an essential condition
OF national efficiency. III we are to
halt and weaken our transportation
systems by state lines. by the perma-
nent imposition OF burdens by unwise
regulation, we Will make national eff
cheney impossible"
States Rights Would Not Suffer.
Mr.. Thorn cited many instances i'm
which shippers In one state were in
juriously affected by selfish regula-
lions imposed on the railroads by
neighboring states. He pointed out
that federal regulation would De no in
vasion Of the rights OF the states but
would be the means OF preserving the
rights which they acquired when they
entered the Union. one OF which was
the right to the free movement OF their
products across state boundaries.
What the Railroads Advocate.
The principles which the railroads
believe should he Incorporated In any
just system OF regulation We're sum
married. by Mr.. Thorn as follows:
!. The entire power and duty OF reg
ulation should be I'm the hands OF the
national government, except as TO mat
tiers so essentially local and incidental
that they cannot be used to interfere
with the efficiency of the service or the
sust rights of the carriers.
plishing this, a system of compulsory
federal incorporation should be adopt
ed, into which should be brought all
railroad corporations engaged In inter
state or foreign commerce.
3. The Interstate Commerce Commits
to do and is charged with conflicting
functions, including the investigation.
prosecution and decision OF cases. The
latter duties should be placed In the
hands OF a new body which might be
called the Federal Railroad Commits
sion. Regional Commissions should
be established In different parts of
the country 10 assist the Interstate
Commerce Commission by handling 10
cal cases.
should be extended to enable Ii to pre-
scribe minimum rates and not merely
maximum rates as at present. This
would increase their power TO prevent
unjust determinations.
Justice to Public and Roads.
s. 1t should be made the duty OF the
Interstate Commerce Commission, In
the exercise OF its powers to fix rea-
sonable rates, to so adjust these rates
that they shall be just at once to the
public and to the carriers. To this end
the Commission. In determining rates,
should consider the necessity of main
tanning efficient transportation and ex.
tensions of facilities, the relation of
expenses to rates and the rights of
shippers, stockholders and creditors of
the roads.
6. The Interstate Commerce Commits
sion should be invested with the pow
err to fix the rates for carrying mails.
Z. The federal government should
have exclusive power to supervise the
issue of stocks and bonds by railroad
carriers engaged In interstate and for
eign commerce.
sential difference between things which
restrain trade in the ease of ordinary
mercantile concerns and those which
restrain trade in the case OF common
CO -riers. The question OF competition
Is not the only fair criterion.
b. The law should expressly provide
for the meeting and agreement Of traf-
lit Ut OtIeT Objects OI THliEoduS Ill re-
ypect of rates or practices. This
should, however, be safeguarded by
requiring the agreements to be filed
with the Interstate Commerce Commits
sion and to be subject to be disapprov-
a by ii.
MY legal proposition" Mr.. Thorn
said. is that the Constitution as II
now is gives full authority to Congress
to regulate the instrumentalities Of in
terstate In all their parts
Ii the power Of regulation is to reach
the public requirements, 1t must be co
extensive with the instrumentalities OF
commerce."
Mr.. Thorn explained that the road,
are not asking either Of the Committed
or Of Congress any increase In reve
nues. but that they are merely asking
the perfection II q system which will
be responsible to any need that may
arise.