The sun., 1916-01-27
Mr.. Kahn On the Predleament Of
the Railroads.

Mr.. Kahn On the PFedleament Of
the Railroads.
This months number Of the Worlds
work contains an article by Mr.. OTrO
II. KAHN to which THE Sun invites
the attention of everybody. II every
man Of knowledge concerning the rail.
road situation in this country could
write as simply. rs forcibly and as
fairly as Mr.. KAHN does. there would
be much less misunderstanding Of the
unprecedented conditions that are
dlsheartening and depressing and
threatening almost to paralyze the
nations greatest industry.
The general theory Of government.
tai regulation OF the railroads which
has been evolved In America during
the past dozen years or more Is
frankly accepted by Mr.. KAHN. He
regards such regulation and supervi-
sion as better system Of protection
and safeguard for the public than
Government ownership. which. he
says, has proved its inferiority wher-
ever tested. except In Germany; and
there 1t Is measurably successful
only for reasons which would make It
here political and economic calamity.
But the practical application Of the
theory Of regulation and the fabric
Of Federal and State laws on which
that application depends are little
short Of mOnstrous In their effect on
the railway business.
First, as to the almost absolute power
exercised by the Interstate Commerce
! Commission. a power conferred by
Federal legislation which entirely liz.
nored the problem of the States In
the exercise Of their cOrrelative power
over intrastate commerce:
That the Interstate Commerce Com
mission. being AZ the same time prose-
cutor. judge and jury, combining in itself
legislative. executive and judiciary func.
| tions. is a negation Of the root principle
from which the American system Of
government springs may be stated as an
incontrovertible fact. Such q combina-
ton Of powers in one body has been
styled by JAMES MADISON the very den-
milton OF tyranny 1t cannot
be gainsaid that TO this commission,
which has greater power and greater
responsibilities concerning the industrial
| life Of the nation than probably any
other tribunal anywhere in the world
exercises. there has never vet been ap-
pointed a man who came 10 1t qualified
by first rate experience in railway Oper-
alton. or by broad business experience.
or any considerable experience in fnan-
! cial matters
This is a sufficiently impressive de-
/ Scription of the instrument through
which the autocratic powers Of regu-
/ lation conferred by Federal laws are
exercised. Mr.. KAHN pictures the com
missloners. with an earnest desire Ia
do justice according tothelr conscience
and judgment, bravely struggling with
an overwhelming and impossible task.
For example. during its last official
year the commission conducted 1,J43
hearings. taking the almost incredibl"
total Of 2OO. .43S pages of testimony
to be mastered by each Of seven men
as II preliminary to passing judgment.
sion also heard oral arguments In 19S
cases. occupying lO3 days: decided
Ns2 cases on it's formal docket" en-
tered on It's informal docket" $500
special complaints. made S22 orders
under the long and short haul clause
and had filed with II no less than
1879 schedules. There has been M
more striking exhibit Of the over
loading Of an inadequate tribunal
than this 10y Mr.. KAHN.
The commission not only has to de,
eide cases In which 200.<Ss pages OF
hear as many arguments as are heard
by the Supreme Court. grant or refuse
almost countless exemptions from gen
eral rules established by Congress, Ini-
tiate and supervise criminal prosecu.
tions. conduct a great detective bureau
for the purpose OF discovering lnfrac-
tons OF the statute. formulate a com.
pick system of accounts and adapt il 70
changing conditions or changing con
ceptions OF public policy. supervise the
a. counting OF more than two thousand
corporations. inspect the physical appa-
ratus employed in railway transporta-
ton and devise means for its improve
ment, enforce regulations concerning
hours OF labor determine what water
facilities railway corporations may op,
crate. and perform numberless other du.
ties OF arduous character and vast i'm
portance. 1t has further 20 regulate
telegraphs, telephones. pipe lines and ex
press companies and to grapple with the
formidable task OF making a physical
valuation OF the railroads. For year,
Congress has thrus, upon the commits
sion one function after another until il
Is simply overwhelmed"