The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-25
FEDERAL INCORPORATION.
The Philadelphia Bourse P1an Ex'
hibiteA and Examined.

hiblteA and Examined.
To THE EDITOR OF THE suN-Str: The
Philadelphia Bourse was chartered
twenty-five years ago. Within the
spacious halls Of its stately building
are gathered the exchanges Of the
great city. It represents the business
intelligence Of Philadelphia, and hence
inasmuch as a few months ago 1t for
mulated and sent to commercial or
CARNATIONS throughout the United
states e propositions relative to the
railroad problem they are deserving
Of high consideration. coming a. they
do from such a distnterested, intelli-
gent and prominent body Of men. They
are as follows:
I. Federal Incorporation. This GER
tainly IL desirable.
2. Present State charters to be re-
tained and Federal charters added.
This Is an astonishing proposition. II
would open another Pandora's box.
The railroads themselves cannot AFFORD
to have compound charters. The cry
Ing need to-day IL for railroads to
have less Of State charters: not to pre-
serve them. The strongest argument
In favor Of a Federal charter Ia to
enable the railroads to get away from
State regulation and exactions. But
this would not happen II at the same
time they retained their State charters.
We would still have conflict Of state
regulation with national regulation:
state commissions with the Interstate
Commerce Commission: State perse-
cution with national helplessness. For
In otun na lnpL NJ Ahn oNnCtinnQ an In
terstate railroad now pays to some OF
the States to issue stock or bonds.
The New Haven cannot even mort
gage its property without the consent
Of all Of the States through which 1t
passes. Massachusetts, recently held q
Coroner's inquest over the wild and
reckless career of that Same railroad.
legal under its Connecticut charter,
illegal under its Massachusetts, char
ter. And now It is proposed that that
confusion shall continue. 1t certainly
Is a hydra headed proposition. If the
railroads retain their State charters
the States canno he deprived Of their
, right to regulate their " creations.
The demand to-day 10 that railroads
be free from State regulation. II the
RAILROADS have Federal charters only
this is possible. but II the State char
tiers are also retained 1t is not pos
sible.
And there II another phase Of the
matter. OF course all the railroads
would like to keep all Of their State
privileges. But why should they re-
ceive the new and o give up the
old? For forty years they have begged.
bribed and bargained for tax exemp-
tons. special franchises. monopolistic
privileges and all sorts Of jug handled
advantages. And now IL In proposed
that they keep all they have got and
get a Federal franchise besides. Not
at all. This Is too good an opportunity
to solve this railroad problem once
for all.
Philadelphia IL wrong. No man can
serve W masters.
3. State regulation TO be prohibited
as to railroads having Federal char
tiers. This IL right. but. as stated
above. how Is It possible II State char
ters are retained?
4. 6. 6. I. 8. 3. Now comes a be-
wildering multiplication Of district
men. railroad men and lawyers; APP
peals or questions Of principle; the
Interstate Commerce Commission Ia
be a grand court Of appeals. sitting
twice a year for thirty days: duplica-
ton Of machinery without end COM
mission on commission; doubt on
doubt: Pelion on Ossa. Already We
have forty-six State commissions one
Interstate Commerce Commission
thousands Of contests. tens OF thou
sands OF lawyers. witnesses. experts
and investigators; anarchy broker
loose. For Heavens sake, have We not
commissions enough already? Do you
a more quack doctors and quack
medicines? Sage Of Chelsea: ghost OF
Smelfungus. glass crackers, fire balls
flaming serp~ nts, sleeping gun powder
burning dust flashing up sky high on
a sudden, heels over head in a torrent
OF roaring debris, Infinite owlery
F1oundering stupidity at the top OF
the world. Cnlntelligible pipe clay
and dreary continent OF sand and Gin
ders." But enough,
10. Limitations on Interstate Com.
merce Commission. The more kmita-
tons the better. But better still
eliminate the cause OF the controver-
sizes. The cause OF the controversies
Is the irresponsible railroad director.
ates. which do not represent the stock.
holders or the bondholders or the pub.
lie. They represent themselves or are
mere dummies" for Wall Street. L
the public. through a Federal railroat
board. controlled the appointment O
railroad directors the Interstate Com.
merce Commission would have little
TO do. And a Federal charter car
bring about that very thing. Fedora
Incorporation Is an excellent thing
hut with il there should come direc.
tors named by a Federal railroad
board; prohibition OF State resula.
ton: 3 per rent. IN the capital stock
to he guaranteed by the Government
with a possible extra 3 per cent to tn,
stockholders II earned: all over 6 pei
cent. to go to the Government. TIL,
railroad stockholders do not elect rail,
road directors anyway. They merel,
give their proxies to the insiders
Limitations On the Interstate Com,
merce Commission would he automati,
IL the railroad directors were named
by a Federal railroad board. becaus,
public control would not contest witt
itse'f. The proposed act OF Congress.
which you published last week woul,
accomplish all this,
Meantime all credit to Philadelphia
II Is organizing a comprehensive dis,