Greene County herald. (Leakesville, Miss.) 1898-current, 1917-05-18
RAILROAD SITUATION
is NOW LARGELY
UP TO CONGRESS
Must Share Responsibility In
Future Development.
ROBERT S. LOvETTs VIEWS

Qualification of Regulation 10 Essential"
A Complete, Harmonious, Consistent
and Related System Needed-Fedsral
incorporation of Railroads by Gsnsr-
al Law Favored.
Washington. March % Respodsi-
bility for the railway development of
the country. for providing necessary
transportation facilities to care for she
growing business and population of
the country, now rests largely with
congress and not entirely with the rail-
road managers This was the state
ment of Judge Robert S. Lovett. chair
man Of the executive committee of the
Union Pacific system, to the Newlands
joint congressional committee when
that body resumed its inquiry into the
subject of railroad regulation this
week
In making this statement of the
changed conditions of the railroad sit
uation Judge ovett undoubtedly had
In mind the Diet tston of the supreme
court on the Aos mson law, handed
down last week, wEsli establishes the
right of the federal government to fix
railroad wages and TO prevent strikes.
This decision Is regarded by railroad
men and lawyers as marking an epoch
IN the development of transportation
in the United States.
I'VE have our share OF responsibility "a
said Judge Lovett. but 1t rests prima-
rily on congress. When the govern
ment regulates the rates and the inan-
cial administration of the railroads, the
borrowing of money and the issuance
of securities it relieves the railroad of
ticers of the responsibility of providing
and developing transportation systems,
except within the limits of the revenue
that can be realized from such rates
and under such restrictions
For country such as ours, for
people situated as we are, to blunder
along with series of unrelated, incon-
sistent. conflicting statutes enacted by
different states without relation to
each other. instead of providing com
plete and carefully studied and pre-
pared system of regulation for bust
ness that is 50 vital to the life of the
nation, is worse than folly"
He summed up the present problems
and difficulties of the railroads as fol-
lows: !
First-The multiplicity of regula-
lions 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.
Second.-The state regulation Of
rates in such 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 it un-
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 practical legality that
has been accorded conspiracies to tie
! up and suspend the operation of the
railroads of the country by strikes and
J 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 dey elopment.
"We believe that Identification Of
| regulation Is essential" said judge
Lovett, land that with the rapid In
crease of state commissions In recent
! years congress will In time be com
| PEELED to exercise its power In the
! premises. To unity regulation there
should he 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 all railroad
companies throughout the United
States the same corporate powers and
restrictions with respect to their finan-
cfal operations and the same duties
and obligations to the public and the
government, SO that every investor will
know precisely what every railroad
corporation may and may not lawfully
do"