The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-19
FEDERAL 1wcoRpoRArroN.

WV
Plan for q Thoroughgoing Regulation
of the Railroads by the Central Cow
ernment-FOrm Of Law To Put Into
Effect the Suggestions Of "Civltas.'
To THE EDfToR or THE SUN-Sir: I
give below the form of a proposed act
of Congress carrying out my PROPOSE
ton of Federal incorporation: directors
named by a Federal Railroad Board:
prohibition OF state regulation: j per
cent. on the capital stock to be guaran-
teed by the Government. with a pos
sible extra 3 per cent. to the stock
holders II earned: all over 6 per cent.
to go to the Government. The Kernel
Of this proposed act is to have a Fed
erai Railroad Board substituted for
the present inside coteries which domi-
nate our railroads. The stockholders
are at present merely ballast in the
hOld. This control IL 10Y In the hands
of whoever happens to he in or man
ages to break in. and the result Is con-
nict, confusion and chaos. Now that
the railroads are clamoring for Fed
eral charters an opportunity occurs to
change the control from inside clidues
to public control. That opportunity
may never occur again. | assert that
public control by a Federal Railroad
Board is not only logical but Is
better for the stockholders. the public
and the railroads themselves. The
proposed act is az follows:
AN ACT TO PROVIDE FoR THE ESTABLISH
MEST OF FEDERAL. RAILROAD COMPANIES,
tn ESTAprTGtl NnEE EEt-EtrTtNE ST.
rERvIsioN OF RAILROADS ~ THE UNITED
sTArEs. n ron OTHER PURPOSES.
Section Wherever the words Fed
eral railroad company" are used in this
act the words shall he construed to refer
Ia each OF the five corporations to lie or
gained under this act as herein pro-
vided.
The words Federal Railroad Board
used in this act shall he construed to
mean the board OF six members herein
provided for.
Tho words Secretary OF Railroads
used in this act shall he construed to be
the head. AT the seat of Government, OF
an executive department to he known as
the Department of Railroads. said head
To he appointed by the President. by and
with the advice and consent OF the Sem
ate. said appointee shall receive a sal
AIRY Of $4,000 per annum and his term
tllu III Vi DlIlCc SIliiI W. unllOTll WIN
other members OF the Cabinet.
FEDERAL RAILROAD DISTRICTS
Sec. 2-Continental United States. ex-
Guiding ALASKA, is hereby divided into
hve districts. to he known as New Eng
lard railroad district. Central railroad
district southern railroad district.
Northwestern railroad district and Cen.
trtl Pacific railroad district.
Tive New England railroad {. -fr riot
shall include the New York. New Haven
and Hartford Railroad system and all
other railroads In Maine. Now Himu-
shire. Vermont. Massachusetts. Rhode
Island and Connecticut not controlled by
any railroad system in another Federal
railroad district.
The Central railroad district shall in
ciude the PENNSYLVANIA Railroad system.
New York Central Railroad system. Erie
Railroad system. Baltimore and Ohio
Railroad system. Chesapeake and Ohio
Railroad system and all other railroads
In the States OF Illinois. Indiana. Ohio
Michigan. Pennsylvania. New Jersey and
New York not controlled by any railroad
system in another Federal railroad dis.
trict.
The Southern railroad dis. rict shall
Include the southern Railroad syster
and Illinois Central Railroad system and
all other railroads in the States ~ Della
ware. MARYLAND. Virginia. North caro-.
lina, South Carolina. Georgia. Florida
Alabama, Tennessee. Kentucky. Nes'
virginia and Mississippi and the p.stti.
Of Columbia not controlled by any rail.
road system In another Federal railroad
, district.
Tn Northwestern railroad district
shall include the Chicago. Milwaukee ant
-. Paul Railroad system. the Chictc,
and Northwestern Railroad system. IN,
Northern Pacific Railroad system. tn,
Great Northern Railroad system ana al
other railroads IN the states OF WiScou.
sin. Minnesota. North Dakota. South "a
kota. Montana. Wyoming. Idaho. Orego'
and WASHINGTON not controlled hV any
railroad system in another Federal rail.
road district.
The Central Pacific railroad dlstr.,'
shall include the t'nion Pacific Railroad
s, stem. the Atch!son. Topeka and Sauts
Fe Railroad system. the Southern IA,
cifc Railroad system and all other rail
roads in the States of Iowa, Nebraska
Kansas, Missouri. Arkansas. Louisiana
Texas. Oklahoma. Colorado. New Mexico
Arizona. Utah. Nevada and Californi:
not controlled by any railroad system IL
another Federal railroad district
Any question which may arise as ~
whether a particular railroad - included
within any particular Federal |rtilro,,
distri'' shall be decided hN tho Fedora
Railroad Board
FEDERAL RAILROAD COMPANIES.
Sec. Tie Federal Railroad Boar,
shall supervise the orginizato on In eaCl
of the said districts of a Federal rail
road company by nine individuals in
each district selected by the Fedora
Railroad Board. and thercupon suci
!, individuals in each district shall under
their seals make an organization Certid,
cate which shall specifically state III,
name ~ such Federal railroad com
pany, the territory and extent Of Tn,
district as defined by states in section
OF this act. the city and State in whicl
its principal Office IL to he located IL
said district. the amount Of Capital stool
EH,oo0). n the number Of shares int,
which the same is divided $40 eachl
and the number ~ shares subscribed fnr
by each incorporation G0o,. The sal,
organization certificate shall he ac
knowiodced before n Judge ~ some cour
, OF record or notary public and shall ho
together with tho ACKNOWLEDGMENT
thereof authenticated by tho seal o
said court or notary. transmitted 20 H.,
: Secretary of Railroads. who shall nlo
record and preserve the same in nil
office. Upon the flinG Of such cortin
I Gates with the Secretary of Railroad
I as aforesaid, each of the said Fedora
n railroad companies shall become n bod,
corporate, and as such and In the nam,
designated in such organization certi6
catp shall hayFn poyrnr.