The Benson signal., 1916-12-23
CONGRESSIONAL
COMMITTEE BEGINS
RAILWAY INQUIRY
Proposed by President to Bet
ter Condition Of Carriers.
MAY CHANGE PRESENT SYSTEM

Officials of Roads Prepared to Advocate
Federal Incorporation, Supervision OF
Securities and Extension of Authority
Of Interstate Commerce Commission.
Washington, Nov. 20.-Ten members
of Congress, five Senators and five
members Of the House Of Representa-
tives, began here today an inquiry into
the subject of public control and SUI
pervision Of railroads that may lead to
the revolutioniZing Of the whole scheme
of governmental regulation of the coun-
try's transportation lines. incidentally
the committee Is to look into the queS-
ton of government ownership OF rail-
ways, telephone and telegraph lines
and express companies.
/ The members of the committee
which will conduct this important in
vestigation are Senator Newlands or
! Nevada, chairman: Senators Robinson
Of Arkansas, Underwood Of Alabama.
Cummins Of Iowa and Brandegee OF
Connecticut. and Representatives Ad-
amson of Georgia. Sims Of Tennessee.
/ Cullop of Indiana, Esch Of Wisconsin
| AM Hamilton of Michigan. The in
quiry was recommended by President
Wilson in his message to Congress in
December of last year. He described
as It's purpose to determine what could
| be done for bettering the conditions
under which the railroads are operated
and for making them more useful Serv-
+! ants of the country as a whole"
Prominent Men as Witnesses.
In order to obtain the views Of all
| interests affected by the operations of
| the transportation lines the committee
has invited prominent shippers. bank
ers, representatives of commercial or
ganizations, railway executives, econo-
mists and others to appear before them.
The first to be heard are railroad
commissioners Of various states who
began their evidence today. Their
/ testimony is directed chiefly to oppos-
ing any enlargement Of the federal
authority over commerce that would
detract from the powers now exercised
by state bodies. They will be followed
shortly by officials of railway labor
organizations who are expected to reg
lister their opposition to the increase
Of governmental authority over wages
and conditions Of labor.
Chief interest in the hearings cen
tiers in the proposals that will be put
forward by representatives of the rail-
roads, for it is reported that they will
advocate an extension of federal au-
thority over rates and securities to the
practical exclusion Of state control of
these matters. 1t is understood also that
they will go on record in favor Of fed
eral Incorporation Of all railroad lines.
Legislative Program of Railroads.
From an authoritative source is OBJ
tanned the following outline Of the leg
islative program which the railroads
will ask the committee to consider in
its investigation: They will endeavor
to demonstrate to the commission that
one of the principal defects in the pres
ent system Of railroad regulation is
the lack Of coordination resulting from
the simultaneous and conflicting regu-
latiOn by the federal government and
by the 48 states. They will, therefore,
ask that entire governmental control
Of the rates and practices of interstate
carriers, except purely local matters,
be placed in the hands Of a federal
body so that interstate traffic may be
regulated without reference to state
| C$~o Loo ko + ,4HA
| jurisdiction only over local matters and
local public utilities. AS part of this
plan, compulsory system Of federal
Incorporation Is to be recommended,
accompanied by federal supervision Of
railroad stock and bond issues.
A reorganization of the Interstate
Commerce Commission will be asked,
In order to enable the commission prop
erly to exercise its increased powers
It is also proposed that the preparation
and prosecution of cases against the
railroads shall be delegated to some
other agency Of the government, possi-
bly, the Department Of Justice, so that
the commission may devote it's ener-
gies to its administrative functions.
With the commission thus relieved
of some Of its present duties and equip
ped to handle it's business more prompt
ly, the railroads will urge that the pc
Rod during which the commission may
now suspend proposed increases in
rates be reduced from ten months to
60 days. with provision for reparation
to be paid to the shippers If the ad
vance shall be declared unreasonable.
They will also ask that the commits
sion be given the power to prescrib
minimum as well as maximum rate
so that in meeting complaints of dis
elimination the commission may orde.
the advance of a rate which it consid
ers too low.
One of the most important recon-
mendations for which the railroads
will ask favorable consideration is
tnat the commission be specifically
authorized to take into account in
rate regulation the effect Of rates