The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1917-04-13
RAILROAD SITUATION
IS NOW LARGELY
UP TO CONGRESS
Must Share Responsibility In
Future Development.
ROBERT S. LOvETT'S VIEWS

Qualification Of Regulation 10 Essential
A Complete, Harmonious, Consistent
and Related System Needed-FedsraI
Incorporation of Railroads by Gener-
al Law Favored.
Washington. March 26. RESPONSE
bility for the railway development OF
the country. for providing necessary
transportation facilities to care for the
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 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.
I'VE have our share Of responsibility,
said Judge Lovett, but it rests prima-
rily on congress. When the govern
ment regulates the rates and the finan-
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 a
people situated as we are, to blunder
along with series of unrelated, incon-
sistent, conflicting statutes enacted by
different states without relation 70
each other. instead of providing com
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-
tons 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
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
cia 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.-The practical legality that
has been accorded conspiracies to tie
Of hn
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 judicial
means, as all other issues between citi-
zens i'm civilized states are to be set
tied.
Fifth.-The phenomenal increase in
the taxation of railroads I'm recent
years.
Sixtfr-The cumulative effect of
these conditions upon the investing
public, to which railroad companies
must look for the capital necessary to
continue development.
I'VE believe that the unification 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 it's power in the
premises. To unity regulation there
should be 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-
cial 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
Judge LOvett contended that the so
luton of these problems and Difficult
ties rested with congress. He told the
committee that under the constitution