Evening journal., 1917-03-29

The utter inadequacy OF the present
organization to do the work imposed
upon It may be better understood
when Il is realized that but two mem
bers have been added to the Inter
state Commerce Commission since It
was created thirty years ago. although
the duties of the commission have
been multiplied many fold by the
amendments and additions to the in
terstate commerce act since It was
originally passed and by the enormous
growth of the railroads and the com
merce handled by them.
We believe that the unification of
regulation is essential and that with
the rapid increase of State commits
sions in recent years Congress will in
time be compelled to exercise its pow
er in the premises. To unity regula-
tion there should be a complete. CON
sistent, harmonious and related sys-
tenn. We believe the best if not the
only practical method is the Federal
incorporation of railroads by general
law, which will make incorporation
Hereunder compulsory. thus imposing
on all railroad companies throughout
the United States the same corporate
powers and restrictions with respect
to their financial operations and the
same duties and obligations to the
public and the Government with re-
spect to their duties and obligations
as common carriers, so that every in
vestor will know precisely what every
railroad corr roration may and may not
lawfully do In issuing and selling Sc
curities and every shipper and travel
Ter may know the duty and obligation
OF every railroad company to him.
whether i'm Maine or California. in
Michigan or Texas.
We believe that exclusive Congress
sional regulation of the issue and sale
OF stock, bonds and other securities,
of the rates TO be charged for the
transportation of passengers and pro-
perty and of all matters of transpor-
tation is absolutely necessary in order
to provide an adequate system OF
transportation for the country and to
check the growing fear that rapidly
increasing State regulation will lead
to conditions seriously impairing the
service as well as the credit of the
railroads. The most urgent feature, in
my judgment. is the exclusive regu-
lation by Congress of the issue of Sc
curities. with provision for the proper
establishment, maintenance and finan-
cling of all interstate railroad systems
without reference to the conflicting
and peculiar, if not selfish, require /
ments of some one or more of the /
States traversed.
With respect to existing corpora |
tions Congress should require them
to reincOrporate by filing with the
designated agency of the government /
articles of relncorporation, which
should contain the statements and de- /
clarations Congress may prescribe, !
and thereupon they should become
Federal corporations instead of State
corporations and possess the power
which Congress by the act for rein
corporation declares such corporations
shall possess. The obligations to cred
itOrs and all other private rights and
relations should continue as before
and the stock and the certificates re-
presenting it should remain as before
until transfers are made in the usual
manner and OF course the certificates, /
in form as well as in fact, would re-
present stock of the reincOrporated /
We believe that several commits
sions are necessary. The present In
terstate Commerce Commission should
be vested with the higher powers and
duties arising under the interstate
commerce act and other laws of Con-
gress regulating commerce, such as
the power Of hearing and deciding
and over the rates and
regulations of the carriers and the