The sun., 1916-11-28
NEARLY ALL ROADS
!: FAVOR u. s. CONTROL
A. y. ThOm Announces Change
in Sentiment Before New
lands Commission.
STATES TO YIELD RIGHTS
Federal Incorporation Plan Ex-
pcctcd to End Police
Power Laws.

WASHINGTON, Nov. 27.-Only a few OF
the railroads to-day oppose Federal In
corporation because, after years OF OPP
position to IT,. they are convinced tnerc
can be no real regulation until such a
plan IL adopted. was the statement made
before the Newlands Joint Congressional
Commission to-day by Alfred =. Thorn,
counsel for the railway executives ad-
vsory committee.
Il also developed that the proponents
Of tire railway PLAN which Includes
Federal incorporation expect that by 1t
the States will surrender many Of their
police powers. such as the power to leg
islatc for full train crews. grade cross
ings, safety appliances and many OF the
matters heretofore more or less local.
The taxing. power also may be sur
rendered TO some extent, In the opinion
Of Mr.. Thorn. although he expressed the
opinion that only such police powers
should be taken away from the States
under the Federal Incorporation plan
that would appear now or later to be a
menace to Federal uniform regulation.
The contention OF the railroads IL
that, under the present system. IL the
national Government happens to con-
travene some charter power Of a State
there Is a question raised at once Of the
validity Of the securities issued under
that charter. This frightens OF in
vostors and the railroad cannot get new
money from them until the question has
bssn passed on by the Supreme Court.
d mson Asks q Question.
Replying to a question OF Representa-
tive W. G. Adamson as to why Federal
charters should not he required for
other corporations doing interstate busi-
sness. Mr.. Thorn said that the railroad
!. question must be considered from the
: standpoint OF the tremendous interest
/, the public had in adequate t~ransporta-
ton facilities. This differentiated the
roads from other corporations. To have
adequate facilities there must be a
: guarded system OF security issues. and
the only way to obtain that was by Fed
eral control.
The plan Mr.. Thorn promised satur-
day he would outline later for pass
y III INC TdklIOdub lIpUl uiiucI hi
corporation into Federal incorporation,
which. he said. was simpler than the
scheme outlined by Richard Olney. was
also unfolded to the commission to-day.
Mr.. Thorn said he would enact "A Law
providing that such interstate carriers AS
. DO not take out Federal incorporation
within a given time shall be barred from
interstate commerce until they do
comply.
1911 - st.-k - ..-sl
not be any railroads outside Of Federal
. Incorporation on the date named" said
1r. Thorn.
Rights Of stockholders.
The witness dismissed all the constitu-
tional objections that have been raised
on behalf of stockholders against Fed.
eral incorporation by giving the opinion
that the stockholders gained no contract
rights when they invested In the stock
Of the State incorporated roads that
were not taken subject to the right of
h Government to regulate interstate
commerce. and that II the Government
under Its power to regulate" felt the
necessity OF imposing Federal incorpora'
lion on the carriers. the stockholders.
having taken their stock subject to the
exercise Of Federal power, could not be
heard to object,
.,on.s .,,an,;on ~ Tho ract Tho, ,he Su.
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nhinh ;n,nrsd MIN ~ fnii
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at 70 the co@n.titmtionai mower ~ CON.
C,... IN revuiats commerce ana that the
rroh,h,,,o, NJ nassas was a pecessarv
800 ~ that regulation
p,., q, ~rs,a. ~ Hs.u.~.
MI. Thom also outlined the plan that
y IN the niinos OF managers or some Oh
the large carriers operating smalier lines
under lease or hrough control gained
by stock ownership TO combine all or the
subsidiaries under one head or system
Mr.. Ihom said mat II Federal moor
Southern Hallway, OF which he Is gen
40 tate on, EaIeraI NEUTRALITY-SUSPICIOUS. lies
sna them s,ons viii ha tatnr To nerg,
t.,
penresent.tiv. Adarso, oues,ionef
Mr. ,rho,, from Inc .~,and,oInt ~ q
S,a,o's r,gh, adyocai.Na Caorgia nam
oorat addr.ssins :, Viroin,a Democra,
On ,ho aroc, n, ,ha EodoraI ,nco,,o-,,io
m no,,ce nowera of Tho states ard in
nrired among others things ~ nrone,