The patriot. [volume] (Indiana, Pa.) 1914-1955, 1917-03-17


penalties.
Hence. State regulation, in this re-
spect is used TO discriminate against
the commerce of other States, and
against interstate commerce.
Since the question Of fair diStribu-
ton of car supply is of equal impor-
tance to shippers In all States. the rail
roads want it regulated by an author
ity representing all the States and not
have its determination depend upon the
selfishness Of a particular state or
states.
We hear much In the present OF a
movement to organize our business In
general TO meet a tremendous foreign
competition after the European war.
What OF the railroads in this connec-
ton?
Is it possible for anyone TO believe
that commercial or industrial prepar-
edneSs can be achieved without a coin
cident and concurrent quickening I'm
railroad efficiency and eXpansi0n2
And when unity is the keynote OF n
purpoSeful program for business, must
the railroads remain impotent under
the sceptre of widely scattered and
devitalizing control?
Similarly, we hear much OF another
movement to develop foreign trade-aa.
unprecedented opportunity for when.
is now at hand. What provision Is be-.
ing made hereunder for railroad growth
and expansion, an essential feature Of
any such achievement?
That the States are now regulating
interstate commerce and the commerce
Of other States Is patent to all. That
this policy can continue seems incon-
ceivable in the light of results attend
ing 1t.
What, then, is necessary as cor
rective? Simply remodeling of our
system of railroad regulation upon
sane, modern and constructive basis,
and the establishment of supervision
with creative opportunities for the fu-
ture.
Build For the Future.
This is possible only through Federal
regulation.
We must ever build for the future;
and system of railroad control which
illustrates, interferes with, or virtual
ly enjoins this public duty Of a car
rier, is unwic and must be unsuccess-
full.
Such a system Is incredibly careless
Of our national well-being, and is, In
effect, an impediment to progress.
Commerce everywhere is dependent
upon two indispensable factors: money
to finance production; transportation
facilities to move the commodities to,
market Banks supply the former pre-
requisite and railroads furnish the lat
ter.
The services rendered In either case
are national in scope and are interde-
pendent. Goods or commodities are
only commerce when they are moved;
and while banks may assist in their
production, the railroads alone can give
them real value by the development
of markets.
Yet banks of issue-indeed, since the
establishment of the Federal Reserve
system, we might say nearly all banks.
are under Federal regulation and
states exercise neither Jurisdiction nor
control over them. The success Of our
banking system is not questioned; but
the status and the prospects Of the
railroads are totally different.
In this close, intimate, indissoluble
dependence Of the nation upon our
banks and railroads, there is a potent
and persuasive suggestion for the solu-
ton Of our railroad difficulties. And
that is to govern our railroads as We
do the banks OF issue; through Federal
authority only.
The only striking particular In which
the railroad business differs from any
other business is in this matter Of
regulation. All other problems it
shares in common with other business
es. 1t is in this ineffective and uncer-
tain system of regulation that we find
the answer to impaired railroad credit
and reduced railroad efficiency.
When we view comparatively the
large earnings averaged by industry
generally upon its property investment
and the relatively low earnings Of the
IdllIOduS upOH IlCll plOpCAly
they place at the service of the public,
less than per cent even in 1915, and
not even per cent. in 1916, despite a
bilIion-dOllar total for net earnings, we
have a graphic illustration Of the effect
Of nl-directed regulation.
1t is more nearly strangulation.
In reporting to the Massachusetts
Legislature, recently, the condition Of
the New York, New Haven and Hart
ford Railroad, the Massachusetts, Pub
lie Service Commission suggested the
simplification Of the problem Of regu-
Iation that would follow a reorganiza-
ton of that company under a single
Federal charter with Federal control
The railroads generally favor Fed
eral incorporation Of their properties
and complete emancipation from State
control. That seems to offer the best
solution Of the railroad problem, and
it should be possible to frame Law
providing for it, containing every nee
essary safeguard demanded by the
public interest Such a result must in