The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-05-10
FEDERAL INCORPORATION.
What II Would DO for the Railroads
and for Their Stockholders.

coal. of locomotives, cars and railway
supplies. Railroads and railroad men
ar, not admitted. but they are GUS
toners OF the members and hence
there is naturally a strong railroad
bias. ina association was formed
several years ago 10 deal with the
railroad problem. 1t proposes no REM
edies. but points out the troubles. 1t
issues ''bulletins'' from time to time.
The latest n summarizes railroad
grievances as follows: the injury to
one State by exactions from railroads
in other States; duplication of cost by
different States having different regu-
l%ations: deliberate attacks by one state
on the of another State:
ruin of railroad resources by State ac-
lions; limited tracks and terminals due
to the same cause: conflicting and
overlapping jurisdictions over rail-
roads; regulation by railroad zones,
which are artificial: Interstate Conn
merce Commission acting as advocate.
prosecutor. jury. judge and expert.
subordinate officials making DECISIONS;
lack Of, power of the commission to
order higher rates. protection Of tho
shipper without protection OF the rail-
road failure to give such rates AZ will
enable the railroads to obtain fresh
money to keep up with the growth OF
the country.
This certainly ia a formidable indict-
ment, And it is true, every word of Il.
Guilty"
But how about that other indict-
ment' | refer to the Indictment which
is now being tried out before the bar
OF public ~opinion-the Indictment OF
past and present railroad di~reCtorates.
The indictment charges that they are
there because they happen To he there
or BECAUSE they have broken IN. or be-
cause they Inherited their position. or
because they took ii by default. the old
directors having sCuttled away like
rats. The Indictment further charges
hat those directors are the cause Of
our troubles and that: Il is time ror
them to go. They have caused the
stockholders to lose hundreds of mill
ions Of dollars. They have aroused the
hostility Of The public. They have
driven away the investor They have
heon Incompetent and at times crooked.
They have run the railroads as though
they owned them. They still pine for
the fine and free old DAYS when all
sorts ~ rates could be had and all
sorts OF tariffs could he found" They
have been in power for forty years.
They are a iz1le and a failure. They
are utterly disOreditcd. Meme. meme.
tekel upharsin.' So runs the indict-
ment. And II is a true bill. Guilty"
IS again the verdict.
Eut what are we going 10 do about
IT. Federal Incorporation alone VIII
NOT insure proper railroad directors.
II would merely continue present ones.
Railroad men and bankers want Fed
eral Incorporation merely TO escapc
state persecution. They have no idea
Of giving up their power. Not. AZ all.
They don't propose N give up any
thing. l. Is useless to argue with them
that a Federal Railroad Board would
name better directors; better for the
stockholders. the ~hondholders. the
public. better for the railroads Them
selves. The present railroad directors
believe that the railroads couldn't go
V without them. The national banks
had the same idea about banking until
the Federal Reserve Board taught
them better.
h public has no grievance against
the railroads themselves those massive
locomotives, those beautiful coaches.
those humble numbering freight cars.
thos" towering bridges those solid en-
banhments, those heavy rails, true as
steel-all patiently waiting 10 do the
"ill Of "A Neither has the public
d any CrlekI moo AGAINST fhnG4 f.f.hsr,l
and efficient engineers. hremcu. con-
ductOrs, brakemcn. station agents and
yardmen. In other words. tho pubic
grievance Is not agninS; the railroad.
ard their operatives. but il against tho
SINAI, lotteries of men who dominate
them dominate, moi for the publ,
good, but for their own ends.
Fifty years z the New England
railroads gave FREQ rides to their stock
holders To attend annual meetings t.
elect directors, Mon and womeu
farmers. tradesmen and small manu-
fa'turers all held a few shares aud at
tended. as they attended the old New
England town meeting. to clcy' tNs
best men. the wiSe>t heads. Now
however, gigantic corporations wltr
-. hundreds Of millions of capitalization
, and {, ms ot thousands OF stockholders
scattered Par and wide. hold their an
nuil elections hundreds Of miles aWaN
from the stockholders. Personal attcu.
dirco - impossible and So III. prong
system has grown up. The l'uou IA.
D. elf, holds its annual meeting m lfah.
m" southern Pacific in kcutu,hN
Single stockholders no longer count
! and the owner Of even n million dol
ttrS Of stock has uo more |iutlutnc,
than n feather in a gale OF wind. Tha'
mode of eleCtiug directors is n farce
The old rotten horoughs of Englau,
ar" again in evidence in these u
railroad meetings. The result is New
I Haven, Frisco and Rock Island Sue
o. episodes will keep on occurring so Ions
p AS this system continues. Federal inCor
{ poration, without provision for ~
= troll, would be like sending a ship int,
: an unknown sea without chart. com
pass, landmark or pilot. Federal in
p corporation. however, with a Fedora
t Railroad Board, named by the Prosi.
dent and approved by the Senate
= would give strong, intelligent publ,
: control and stop the abuses dctailc,
above.
I In a few days will reply 10 a l"tte
r from Auburn, Pa. printed in rur 81
e Of April Is, demanding To he iuformc,
how railroad labor would he Htfccto,