The Benson signal., 1917-01-27

! Govern Regulatory System In inter-
ests of Public and the Roads-Com-
pulsory System Of Federal lncorpo-
ration Favored.
Washington, Dec. 4.-That the inter-
ests of national defense require thar
/ control Of railway lines should rest
with the federal government and not
with the states was the claim ad
yanced by Alfred p. Thorn. counsel
TO the Railway Executives Advisory
/ Committee. in concluding his prellm
mary statement of the case for the
railways before the Newlands Joint
Committee on Interstate Commerce.
I'VE must be efficient as nation il
we are to deal successfully with our
national emergencies" said Mr.. Thorn,
"and we must appreciate that efficient
transportation is an essential condition
Of national efficiency. If we are to
halt and weaken our transportation
/ systems by state lines, by the perma-
nent imposition Of burdens by unwise
/ tCS we VIII uldkG uulIOlIhl cul-
cheney impossible
/ States Rights Would Not Suffer.
Mr.. Thorn cited many instances In
which shippers in one state were in
juriously affected by selfish regula-
tions imposed on the railroads by
neighborins states. He pointed out
that federal regulation would be no in
yasion of the rights of the states but
would be the means of preserving the
! rights which they acquired when they
entered the Union, one of which was
the right to the free movement of their
products across state boundaries.
What the Railroads Advocate.
The principles which the railroads
believe should he Incorporated in any
| just system of regulation were sum-
married. by Mr.. Thorn as follows:
l. The entire power and duty OF reg
ulation should be in the hands Of the
national government, except as to mat
ters so essentially local and incidental
that they cannot be used to interfere
with the efficiency of the service or the
just rights Of the carriers.
2. AS one of the means Of accom-
plishing this. a system Of compulsory
federal incorporation should be adopt
ed, into which should be brought all
railroad corporations engaged In inter
state or foreign commerce.
8. The Interstate Commerce Commits
sion under existing laws has too much
to do and is charged with conflicting
functions, including the investigation,
prosecution and decision of cases. The
latter duties should be placed in the
hands of new body which might be
called the Federal Railroad Commits
sion. Regional Commissions should
be established In different parts Of
the country to assist the Interstate
Commerce Commission by handling To-
cal cases.
4. The power Of the Commission
should be extended to enable 1t to pre-
scribe minimum rates and not merely
maximum rates as at present. This
would increase their power to prevent
unjust determinations.
Justice to Public and Roads.
5. 1t should be made the duty of the
Interstate Commerce Commission, in
the exercise of its powers to fix req
sonable rates, to so adjust these rates
that they shall be just at once to the
public and to the carriers. To this end
the Commission. in determining rates
should consider the necessity of main
tanning efficient transportation and ex-
tensions of facilities, the relation Of
expenses to rates and the rights of
shippers, stockholders and creditors Of
the roads
G. The Interstate Commerce COmmis-
sion should be invested with the pow
er to fix the rates for carrying mails.
Z. The federal government should
have exclusive power to supervise the
issue Of stocks and bonds by railroad
carriers engaged in interstate and for
eign commerce.
g. The law should recognize the es-
sential difference between things which
restrain trade in the case Of ordinary
mercantile concerns and those which
restrain trade in the case of common
carriers. The question of competition
Is not the only fair criterion.
g. The law should expressly provide
for the meeting and agreement Of traf-
fic or other officers of railroads in re-
spect of rates or practices. This
should, however. be safcguarded by
requiring the agreements to be filed
with the Interstate Commerce Commits
sion and to be subject to be disapprov-
ed by it.
"My legal proposition" Mr.. Thorn
said. us that the Constitution as it
now is gives full authority to Congress
to regulate the instlumentalities of in
terstate commerce in all their parts
Ii the power Of regulation Is to reach
the public requirements, 1t must be CO
extensive with the instrumentalities Of
commerce"
Mr.. Thom explained that the roads
are not asking either Of the Committee
or Of Congress any increase In reve-