Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-01-24
Senator NeWIands Wants Sift-
ing of Transportation to
Cover Regulation Only.
BELIEVES 1T BAD TIME
TO CAUSE UNCERTAINTY
Makes Speech in Senate Urging
Adoption of His Resolution, Which
Has Favorable Report.

Strongly urging the adoption by the
Senate OF his joint resolution providing
for an investigation by a joint COM
mittee of Congress into interstate and
foreign commerce. Senator Newlands
of Nevada. in a speech in the Senate
today opposed an amendment. offered
by Senator Borah. providing that the
investigation be extended so as to
cover specifically government owner
ship. Senator Newlands contended that
1t would be far better to restrict the
proposed investigation to government
regulation. under which, he said he
thought, the proper development of the
transportation systems of the country
could yet go far. He suggested also
that to agitate the question of govern
ment ownership jest now. when ar
rangements are pending for the imme-
date ref1nancing of many railroads.
would not be wise and would have the
effect of producing uncertainty.
The resolutio,, which provides for an
investigation in all the problems af-
fecting transportation by a committee
Of five members OF the Senate commit
tee on interstate commerce and five
members of the House committee on
interstate and foreign commerce, is in
line with recommendations made by
the President in his message to Con.
gress last December.
The resolution has been reported IA
vorably from the Senate committee on
interstate commerce, of which Senator
Newlands is chairman Senator New
lands asked that the Senate adopt the
resolution today.
Purpose of the Bill.
Senator Newlands stated that the
purpose of the resolution was to make
an exhaustive inquiry regarding inter-
state and foreign transportation. such
as was made by the monetary commits
sion regarding banking and finance.
Numerous bills had been introduced in
both Houses looking to the regulation
of railway securities, the increase In
the membership and the division into
branches or departments of the inter-
state commerce commission. the ma
tional incorporation of great railway
systems and the relations between
rail and water carriers. both river ana
ocean.
The proposals were so numerous and
varied, and the difference of opinion
regarding them SO great, he said, that
it was thought the co-ordinating OF
the committees of the Senate and
House having jurisdiction of interstate
transportation would be instrumental
in focusing the attention of Congress
upon definite measures. which would he
framed after full hearing and Discus
sion.
Mr. Newlands commented that until
the foreign war stimulated the business
of the country the transportation IN
terests had suffered, as had other bust
ness interests of the country. Prior
thereto there had been a gradual let
down in business and industry and pro-
duction, which was necessarily reflect
ed in the reduction~of transportation.
There had been no period in the hts.
tory of transportation for the last twen-
ty years in which the problems. So far
as the finances of the railroads we're con.
cerned, we're so serious.
Difficult to Obtain Money. -
The railroads. having lost the political
and governmental control which they
once exercised, and being forced into
the forum Of public opinion. he con-
tnued. thought it wise to present their
case to the public through addresses.
pamphlets and newspaper publications.
Their situation was one of diminishing
traffic and increasing wages and taxes.
They perhaps overstated their case ana
the result was that while perhaps their
appeals in measure affected the pubic
Judgment and moderated governmental
action regarding their activities, the
effect was to alarm their own stock
holders and investors generally IN ran
way securities and make II dlncult Ior
them to obtain the money needed Tor
extensions and improvements. There
had been no period in this generatioh'
outside of the panic year of 1907, when
it was so difficult for them to secure
money, lie added.
The recent revival of industry had, OF
course affected them favorably. and they
were now approaching time whe'i IL
would be easier to make their regotia-
tons but all such negotiations would DC
hampered by a consideration and discus
sion of important questions relating 10
their regulation and control at ume
when a presidential campaign was ap-
preaching and when the general inclna-
tion of both sides was to take a political
rather than an economic view of such
questions.
As to Executive Suggestion"
Senator Townsend of Michigan. dis
GUESSING the resolution, declared that in
the past the interstate commerce COM
mission had been regarded by the
country as an especially worthy branch
of the executive department of the gov
ernment and that its worth had been
highly regarded. Last year, however.
in the rate decision case, Senator
Townsend said, the commission had ap-
parently yielded to executive sagges-
ton in allowing increase freight rates
in its second decision.
Il do not know if the President con-
ferred with any member of the COM
mission said Senator Townsend, but
after the first decision of the commits
sion was made il was generally report
ed throughout the country that the
President was not in sympathy with
the findings of the commission"
Senator Townsend declared that in
some cases incompetent examiners are
forced upon the interstate commerce
commission through political influence.
Senator Norris of Nebraska interrupted
to say that if this were true d special
ought to be made into
that charge. Senator Townsend re-
piled that the pending resolution was
broad enough to cover such an invcsti-
CATION if the committee desired to
make it.
Twenty Hurt When L Trains Collide