The sun., 1916-01-27
stances frankly for the selfish inter-
est Of each State

stances frankly for the selfish inter-
est Of each State.
We could continue the story Of con-
fusion, Of conflicting requirements, Of
legislative congestion. Between 1912
and 1915, Tor example, more than
four thousand bills affecting the rail
roads were introduced in Congress
and the State Legislatures. and more
than 44O were enacted. Mr.. KAHN
says:
"It will be admitted that the cup Of
railroad difficulties and grievances is
full. I am far from holding the rail-
roads blameleas for some Of tho condi-
tIons with which they are now con-
fronted. Not few Of them were AFRO
giant in the days Of their power. many
mixed In politics. some forgot that be-
sides having . duty to their stokhold-
ers they had duty TO che public. some
we're guilty of sricvous and inexcusable
financial misdeedA But In their nat
ural resentment and their legitimate re-
solve TO guard against similar condi-
tions in the future. the people have
overshot the mark. The proof Of the
pudding is in the eating. Not less than
eishty-two railroads. comprising I.osS
miles and representing S2.2s%, 900. 900 Of
capitalization. are In receivers hands,
and the mileage Of now railroad con-
structed in 1915 is less than in any year
since che civil war"
Railroad credit, also, has become
gravely affected; and Mr.. KAHN,
while admitting that faults OF man.
agement and objectionable practices
on the part Of railroad corporations
themselves have contributed to di.
minishing credit, does not hesitate to
state, from his experience In dealing
with investments, that the main rca-
son for the multiplication of bank
ruptcies and the changed attitude Of
the public toward railroad securities
is due to the Federal and State legis-
lation Of the years from 1906 to 1912,
and to what many investors consider
"the illiberal. narrow and frequently
antagonlstic spirit toward railroads
Of commissions charged with their
supervision and control"
This is expert testimony. and it Is
from an expert source. entitled to re-
spectful attention. that come the rem
edies suggested by Mr.. KAHN. We
summarize his recommendations:
I. Put all the interstate steam rail
roads under one national authority
instead of under the various and
conflicting Jurisdictions of the diff
| ferent States.
| .. Abolish the prevailing system of
what Is practically rate making hv
| the commission: and leave this inn
mensely complex. difficult, and deli
cate task in the hands of those trained
for 1t by life's study and expert
ence. namely. the railroad officials
with full power. however, in the com
mission. on its own motion. 10 reduce
or to increase rates for cause
3. Demolish the present lop>ided
structure of railroad laws. and su-
persede them with new set designed
not To punish the corporations but 10
aid them in the development of their
usefulness and service.
/ T. To this end follow the precedent
established by the banking and cur
rency legislation of 1919. The na.
tlonal functions of the railroads are
in many respects analogous IL those
of the national banks. Ere" ia" rail
roads from the conflicting and mul-
and place them under II strong, efrec-
tive Central Board in >hington.
relieved of detail work. and with re-.
yionnl boards according to geographic
groupings
The essential feature. it will be
seen. of Mr.. kAHN's plan parallels
the system adopted when the Federal
Reserve system was established with
regard Ia the banking interests of
the nation. The proposal i interest
ing. pregnant and sur. To- command
attention.
| Not the less 81, We are sure. on
account of the new and serious Situa-
tion which. since Mr.. kAuN wrote,
has developed through The additional
demands of labor. and which threat
ems To add almost immeasurnhly To
the perplexities and difficulties Of the
predicament dealt with in such lucid
ana intelligent fashion in the N",iTs
work article.