New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-11-26
Present System of Rcgula-
ton Called Archaic. and
WaSteful
Lfrom Ths Trlbun. Dufsau

states rights argument IN FAVOR VI
control of the roads by state commits
sions, Mr.. Thorn retorted that Federal
control was essential TO guard each
state against having It's railroad ser
vice impaired or prevented from prop
erly expanding by the unjust regula-
tion Of neighboring states through
which the same railroad lines passed
Richard Olney, Secretary of State
under President Cleveland, heartily
favored Federal control of the rail
roads as an alternative TO the pollt-
cal dangers of government ownership,
in a memorandum read to the commit
tee by Mr.. Thorn. Some Of the strik-
ing statements of this memorandum
were:
at cannot be doubted that a railroad
corporation created by a national char
ter is an apt instrument for the carry
ing on of national transportation, and
that the organization of such corpora
tion with all appropriate powers and
duties is fit subject for treatment
under the commerce power. Nor Is 1T
to be doubted because ample expert
ence has shown-that in this matter o
national transportation by railroads
public policy and the public welfare arc
at one with the law of the country.
They imperatively require that the sub
ject should be dealt with in all its
phases by a single authority, which
can be no other than the nation itself.
Mixed Jurisdiction Archaic
"The mixed jurisdiction over the sub
/ iect now prevailing states exeTcis-
! ing apart mostly through state char
tiers, and the United States apart most
| ly through the commerce power-is
| thoroughly archaic, originating before
the true scope of the commerce power
was generally understood, and has re
suited in serious waste and mem
cheney in railroad operation which IS
at once matter of public notorlety and
public scandal"
Admitting the thoroughly unsatis-
/ factory condition that now obtains IN
/ transportation, Mr. Olney wrote:
|. at may be claimed that government
/ ownership of all national railroads IS
/ the only true and adequate solution, q
! claim which time and sufficient expert =
ment may show to be well founded.
/ Yet government ownership would have
/ political bearings Of such pith and mo-
( ment as ought to prevent its considera-
! ton until. and unless, it is established
1 that there is no other way out. II is
/ Best to assume that, in the first IN
I stance. therefore, there is some other
/ way out: that the question is essen
! TALLY administrative rather than po--
/ Htical; that it concerns our national
! housekeeping rather than the strucJ-
/ ure and stability of the house itself
Respecting suggested legal difficulties
which stand in the way of the national
! government incorporating, raj lroads
now holding state charters Mr. oiney
said:
ION the legal grounds already de-
! velored, a state grant to state cor
/ poration of the franchise 70 operate 2
( national railroad must be regarded
either as void alb initlo or as pro-
( visional merely and as becoming VOID
/ whenever the national government acts
/ upon the subject. Consequently
/ neither that state nor the state cor
noration would be legally aggrieved II
| a grant to q state corporation OF the
/ franchise to operate a national rail-
road were annulled by a grant TO the
/ national government of an ldenucai
/ franchise to a national corporation
Railroads Part of Defence
In his address to the committee Mr..
| Thorn dealt with railroads as part OF
a system Of national defence.
"The day of the small and defence
less state has passed" he said This
| il the day of great nations, with al
| their resources available and ORGANIZED
a necessity of modern civilization. Gan
Won organize the American nation eX-
cept on a basis of transportation Inc
Fundamental thing in national pre-
I
/ The government is charged with the
dutv of national defence. There must
he standard Of facilities in time oil
peace TO bear a proper proportion to
needs in time of war. The same agency
charged with the national defence IS
the only one 10 have charge OF the eie-
ments of preparation"
Federal incorporation must be com.
rulsory. said Mr.. Thorn, who declared
that il would be unfair 70 give rail
roads which had favorable state char
tiers the right to retain them and make
Federal incorporation a refuge for rail.
roads less favorably situated. Federal
incorporation, he suggested, would be
upheld by the courts as an exercise o.
the right to regulate" interstate com
merce. If railroads were left choice
in the matter Of incorporation there
/ would be no regulation.
Makes no Labor Suggestion
81 have not said anything about the
labor situation" said Mr.. Thorn, n
concluding his remarks. I'VE hac
agreed on these things before the labor
Situation became a menace TO the eoun
try. When we prepared for the hear
ings we did not expect 20 bring that
subject here because Of the intense con
troyersy. | shall make no suggestion
MIR. Thorn said that the railroad at
titnde toward prospective legislation
might change, although he did not an
ticinate change, and that the railroads
during the hearings would be open to
suggestions. L.
The Newlsnds committee held shor'
were informed that W. j. Bryan has
s.I,oI on oDnortunityl TO address the