The Era-leader., 1917-04-05
RAILROAD SITUATION
is now LARGELY
Up TO CONGRESS
Must Share Responsibility In
Future Development.
ROBERT 5. LOVETT'S Views

"Unfication Of Regulation Is Essential"
A Complete, Harmonious, Consistent
and Related System Needed-Federal
Incorporation of Railroads by Gener-
al Law Favored.
Washington, March 26.-Responsib1-
ity for the railway development Of the
country, for providing necessary trans
portation facilities to care for the grow
ing business and population of the
country, now rests largely with con-
gross 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 Jldge Loyett undoubtedly had
in mind the decision Of the supreme
court on the Adamson law, handed
down last week, which establishes the
right of the federal government to Tx
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.
"We have our share Of responsible
ity," said Judge Lovett, "but it rests
primarily on congress. When the gov
ernment regulates the rates and the
financial administration Of the rail-
roads, the borrowing Of money and the
issuance of securities it relieves the
railroad officers of the responsibility of
providing and developing transporta-
ton 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 a
people situated t~s We are, to blunder
along with a series Of unrelated, incon-
sistent conflicting statutes enacted by
different states without relation to
each other, instead Of providing a COM
plete and carefully studied and pre-
pared system of regulation for q busi-
ness that is so 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-
TORS by the several states with respect
to the issue CT securities, involving de-
lays and conflicting state policies gen.
orally dangerous and possibly disas-
trOus.
Second.-The state regulation of
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 devo1sing 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 O.
their employees US final in deciding
matters Of great Importance to tn
commercial and railroad interests O.
the country.
| Fourth.-The practical legality tina
has been accorded conspiracies to tt
up and suspend the operation Of tn
railroads of the country by strikes ant
violence and the absence Of any Law
to cOmpef the settlement Of such dis
putes by arbitration or other judicia
means, as all other issues between cit
zens In civilized states are to be SET
tied.
=, Fifth.-The phenomenal increase i
the taxation Of railroads in recen
years.
i Sixth.-The cumulative effect Q
these conditions upon the investin
public, to which railroad companie
must look for the capital necessary t
continue development.
1--WE believe that the unlfcation 9
regulation is essential" said Judg
J Lovett, "and that with the rapid il
i, crease of state commissions in recer
years congress will in time be con
PEELED to exercise its power in th
premises. To unity regulation the,
should be a complete. harmonious, COZ
sistent and related system. We b
lieve the best, if not the only practic'
plan, is the federal incorporation
railroads by general law, which wi
make Incorporation Hereunder cor
pulsory, thus imposing on all railroa
companies throughout the Unite
States the same corporate powers m
d restrictions with respect to their f1nal
O cial operations and the same duti'
and obligations to the public and Il
\. government, so tffat every investor WI