The St. Joseph observer. [volume] (St. Joseph, Mo.) 1906-1932, 1917-04-07

Incorporation OF Railroads by Gsnsr-
al Law Favored.
Washington, March 26.-Responsibil-
fly 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 Judge Lovett 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 fix
railroad wages and to prevent strikes.
This decision is regarded by railroad
men and lawyers as marking an epoch
III the development Of transportation
In the United States.
I'VE have our share Of responsible.
ity," said Judge Lovett, "but 1t 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 1t relieves the
railroad officers of the responsibility of
providing and developing transporta.
tlon systems, except within the limits
of the revenue that can be realized from
such rates and under such restrictions.
For a country such as ours, for a
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 busi.
ness that is so vital to the life of the
natio-, is worse than folly"
He summed up the present problems
and difficulties of the railroads as fol.
lows:
First.-The multiplicity of regula.
tions 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 a manner as to unduly
reduce revenues, to discriminate in ia.
yor 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 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 I'm deciding
matters of great importance to the
commercial and railroad interests of
the country.
Fourth.-The practical legality that
has been accorded conspiracies to Tic
up and suspend the operation Of the
| railroads OF the country by strikes and
violence and the absence Of any law
to compel the settlement Of such dis
putes by arbitration or other judlcla
means, as oil other issues between citi
zens In civilized states are to be set
tied.
Flfth.--The phenomenal increase II
the taxation Of railroads in recen
years,
Slxth.-The cumulative effect o
these conditions upon the investing
public, to which railroad companie
must look for the capital necessary h
continue development
I'VE believe that the uniacation o
regulation is essential" said Judg
Lovett, "and that with the rapid In
crease of state commissions In recen
years congress will in time be con
PEELED to exercise its power In tn
premises. To unity regulation ther
should be a complete. harmonious, col
sistent and related system. We b,
lisve the best, II not the only practices
plan, Is the federal Incorporation q
railroads by general law. which wi
make incorporation hereunder con
pulsory, thus imposing on all railroa
companies throughout the Unite
States the same corporate powers an
restrictions with respect to their finai
cial operations and the same dutis
and obligations 10 the public and Il
government, 30 that every investor wi
know precisely what every railroa
corporation may and may not lawful
DO"
Judge Lovett contended that the .
luton Of these problems aud difticu
: ties rested with congress. He told Il
, committee that under the constitute
l the authority Of the federal cover
msnt 10 paramount, that congress hi
the power TO legislate for centralizs
control Of. railroads under federal cha
ters and that II only remains for tn