White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1917-04-06
RAILROAD SITUATION
IS NOW LARGELY
UP TO CONGRESS
Must Share Responsibility In
Future Development.
ROBERT S. L0vETT'S VIEWS

ROBERT 5. L0VETT'S VIEWS
Qualification of Regulation Is Essential"
A Complete, Harmonious, Consistent
and Related System Needed-Federal
Incorporation of Railroads by Gener-
al Law Favored.
Washington, March 26.-Responsibil-
ity for the railway development Of the
country, for providing necessary trans
porta ton facilities to care for the grow
ing business and population of tho
country, now rests largely with con-
gress 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 it's 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
in the development of transportation
in the United States.
eve have our share of responsible
ity," said Judge Lovett, "but it rests
primarily on congress. When the gov
eminent 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 q
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 CON-
plete and carefully studied and pre-
pared system OF regulation for bust
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-
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 ia such manner .as to unduly
reduce revenues, to discriminate in ia.
yor of localities and shippers within
IT'S 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 deyolving upon it un
der existing laws, resulting in delay
which should never occur in CONNER.
cial matters-and competing 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.--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 judicia
means, as all other issues between citi
zens in civilized states are to be set
tied.
Fifth.-The phenomenal increase il
the taxation Of railroads in recen
years.
Sixth.-The cumulative effect o.
these conditions upon the investing
public, to which railroad companie!
must look for the capital necessary tt
continue development.
1--WE believe that the unification o
regulation is essential" said judge
4 Lovctt land that with tie rapid in
crease of state commissions in recen
years congress will in time be com
PEELED to exercise its power in thu
premises. To unity regulation ther'
should be complete, harmonious, con
sistent and related system. We be
lleve the best, If not the only practica
plan, is the federal incorporation O
railroads by general law, which will
make incorporation hereunder com
pulsory, thus imposing OH all railroad
companies throughout the United
States the same corporate powers an(
restrictions with respect to their fnan
cial operations and the same duties
and obligations to the public and tho
government, so that every investor viii
know precisely 'wllat every railroad
corporation may and may not lawfully
do" :.
Judge Loyett contended that the so
luton Of these problems and Difficult
ties rested with congress. HE told the
committee that under the constitution
the authority of the federal govern
ment is paramount, that congress has
thn rounr to looioIotn for - oort,o to1r