The Meridian times. (Meridian, Idaho) 1909-1938, 1917-05-11

and Related System Needed--F ederal
Incorporation of Railroads by Gener-
al Law Favored.
Washington, March -. Responsible
NY for the railway development Of the
country. for providing necessary trans
portation facilities to care Tor tile grow
ing business and population Or the
country. now rests largely with con
gross and net entirely With tile rail
road managers This Wns Tie state
mont Of .lau-e Robert s. I.ovett. chair
man Of Tile executive committee Or the
llllon Pacific system, Ia the NeWlauds
Joint congressional committee when
that body resumed its inquiry into
the subject Of railroad regulation this
week.
In making this. statement Of tile
changed conditions Of the railroad sit.
uation Judge Loyett undoubtedly had
in mind the decision of the supreme
court gu the Adamscn law. handed
down last week, which establishes the
right of the federal government to fix
This decision is regarded by railroad
men and lawyers as marking an epoch
in the development or transportation
in the United States.
I'VE have otlr share of responsible
ity," said Judge Loyett, but 1T rests
primarily OH congress. When the GOV.
eminent regulates the rates and the
faI n Tot fi-.t, an
roads, the borrowing OF money aud the
Issuance of securities ID relieves the
railroad officers OF the responsibility OF
providing and developing transporta-
tion systems, except within the limits
or the reYenu that can lie realized from
such rates and under such restrictions.
For country such as ours, for
people situated as we are. 70 blunder
along with series OF unrelated, neon
sistent, conflicting statutes enacted hy
different states without relation 10
each other, instead of providing com.
plete and carefully studied and pre-.
pared system of regulation for busi-
ness that is SO vital to the life of the
nation, is worse than folly"
He summed mp the present problems
and difficulties Of the railroads as fol.
lows:
First.-The multiplicity OF regrIa-
tons by the several states with respect
to the issue Of securities, involving de-
lays and conflicting state policies gen
orally dangerous and possibly disas-
trous.
Gacnnd Tho ctoto .oo,,I,+;o,, -
rates in such a manner as to unduly
reduce revenues. to discriminate in ia
vor of localities and shippers within
its own borders as against localities
and shippers in other states and to dis.
turb and disarrange the structure Of
interstate rates.
Third.-The inability of the Inter-
state Commerce Commission, whoever
the commissioners may be, to perform
the vast duties devolving upon 1t UNI
der existing laws, resulting in delay
which should never occur in CONNER.
cial matters-and compelling the com
missioners to accept the conclusions Of
their employees as final in deciding
matters Of great Importance to the
commercial and railroad interests of
the country.
Fourth.-The practical legality that
has been accorded conspiracies TO tie
up and suspend the operation of the
railroads of the country by strikes aud
violence and the absence of any law
to compel the settlement OF such dis
putes by arbitration or other judicial
means. as all other issues between citi-
zens in civilized states are to be set
tied.
Fifth.-The phenomenal increase in
the taxation Of railroads in recent
years.
Sixth.-The cumulative effect OF
these conditions upon the investing
public, to which railroad companies
must look for the capital necessary TO
continue development.
I'VE believe that the unidcation OF
regulation is essential said Judge
Lovett, land that with the rapid In
crease of state commissions i'll recent
years congress will In time be com
PEELED to exercise its power in the
premises. TO unity regulation there
should be complete. harmonious, con
sistent and related system. We be-
lieve the best, If not the only practical
plan, is the federal Incorporation OF
railroads by general law, which will
make incorporation Hereunder com
pulsory, thus imposing on ali railroad
throughout the United
States the same corporate powers ana
with respect to their finan-
cial operations and the same duties
and obligations to the public aud the
government, so that every investor will
know precisely what every railroad
may and may not lawfully
TO-"
Judge Lovett contended that the so
luton of these problems and difficult
lies rested with congress He told the
committee that under the constitution
the authority of the federal govern
ment is paramount, that congress has
The power to legislate for centralized