Evening journal., 1916-11-24
To the Editor of THE EVENING

JOURNAL.
Sir:-On November 20, ar inquiry
into the existing railway situation
with a view to the improvement Of
the present system of regulation and
supervision, was inaugurated in
Washington by a Joint Committee Of
the Senate and House Of Representa-
tives, with Senator NeYlands. of Ne
vada as chairman. This inquiry was
recommended by President Wilson,
and was authorized by Congress to-
ward the close of its recent session.
The Joint Committee has invited
leading econom SITS, representatives
of important business interests, rep
resentatives Of the labor unions, and
others, including representa- YES Of
the railroads, to present their views
upon this subject.
The railroads have accepted this
invitation. They consider t a public
duty TO give the American people,
through it's Congressional represen-
tatves, the results of their expert
ences and observations and the r
views on this vital problem They
believe that certain changes should
be made i'm the present system OF
regulation and desire to give their
reasons for this Op MON. They VIII
make various recommendations which
in their opinion are i'm the interest
of the whole American publish p
pers. consumers, investOrs-as well
as of the railways themselves. They
welcome full and frank discussion
and criticism Of every constructive
idea advanced by themselves or by
others in the course Of the inquiry
realizing that no system OF regulation
or supervision can be permanently
satisfactory or successful unless il
has behind it the force of enlightened
| public Op nion
As you will have occasion doubtless
from time TO time to discuss the de-
! velopments OF this inquiry. we de-
sire to call to your attention the po-
sit on Of the railroads on some of the
questions at issue.
In any argument or testimony
which the railroads may present dur
ing the inquiry they do not oppose
| public regulation or supervision.
! They recogn re that such public regu-
laton has come to stay. They do
! feel however, that the present com
| plicated system OF regulation is de-
| fective, wasteful. and therefore UNI
duly burdensome for both the pub
| lie and the carriers. in several inn
portant respects. Some of these are:
l. The existing dual system of
regulation CFederal and State) makes
the railroads subject not to one mas
ter, but TO forty-n ne. Railway trans
pOrtatiOn in the United States has
become a matter Of national and not
| merely of local Importance The rail-
roads, therefore favor the placing of
regulation in the control of Federal
tribunals, which will act fairly in be-
half Of all States.
3 The railroads feel that the func-
| lions now exercised by the Inter-
state Commerce Commission should
be senarated to bring them into con-
| formity with our scheme of govern
/ mcnt The duties of detectOr, prose
cutor and judge. should be set apart
from purely admin strative duties and
assigned to other governmental de.
| partments or agencies.
g. Many of the existing laws relat
ing to railway regulation land thi!
applies especially TO State laws) arr
primarily pun tive and restrictive
They We're enacted to punish the rail
roads for actual or alleged past wroni
doing. The difference in spirit an
purpose between our railways laws
and for example. those governing
our bank ng system. which are de
signed to serve the public by encOur
aging and facilitating banking Ope
ations. is obvious. The railways hol
that it is to the pubic interest a
well as to their interest that thu
system of regulation be framed witt
| the purpose OF encouraging railwa
DEVELOPMENT and efficient service
along legit mate lines.
4. While maintaining that by fa'
the greater part of the railway bust
ness Of the country consists Of th'
transportation of interstate commerce
and that the regulation OF this IL
properly Federal, and not a Stat
funct on. the railroads recognize tina
such regulation should be brought a
closely as possible into touch witt
the people and for this reason the
advocate a system Of regional com
! missions or branches OF the Inter
state Commerce Commission, simila
to the reg onal banks, working Il
cooperation with or subordinate t
that Commission such commission
to pass upon matters Of immediat
local or regional Importance subiec
to review by the central comm 'ssioI