The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1917-03-29
RAILROAD SITUATION
Is NOW LARGELY
up TO CONGRESS
Must Share Responsibility In
Future Development.
ROBERT S. LOVETT'S VIEWS
"UnificatiOn of Regulation Is Essential"
A Complete, Harmonious, Consistent
and Related System Needed-FederaI
Incorporation of Railroads by Gsner-
al Law Favored.


Incorporation of Railroads by Gsner-
al Law Favored.
Washington, March 26.-Responsibil-
ity for the railway development of the
country, FIR providing necessary trans
pOrtatiOn facilities to care for the grow
ing business and population of the
country, now rests largely with con-
gresS and not entirely with the rail
road managers. This was the state
ment Of Judge Robert S. L0vett, chair.
man of the executive committee Of the
Union Pacific system, to the Newlands
joint congressional committee when
thct 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 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 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 responsible
itNS" said Judge LOvett, but it rests
primarily Oh congress. When the gov
erhment 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 us 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
nation, is worse than folly
He summed up the present problems
and difficulties of the railroads as fol-
lows:
First.-Tne 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 III 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
cial 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
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 snch dis
putes by arbitration or other judicial
means, as all other issues between citi'
Zens in civilized states are to be set
tied.
Fifth.-The phenomenal increase III
the taxation of railroads in recent
years.
SiXth.-Thc cumulative effect OF
these conditions upon the investing
public, to which railroad companies
must look for the capital necessary t.
continue development.
1--WE believe that the unifcation o.
regulation is essential said judge
Lovett, land that with the rapid in
crease of state commissions in recen
years congress will in time be com
PEELED to exercise its power in tn
premises. To unity regulation Their
should be a complete, harmonious, con
+ sistent and related system. We be
lieve the best, if not the only practica
, plan, is the federal incorporation o
railroads by general law, which vii
, make incorporation hereunder CON
pulsory. thus imposing on all railroad
Z companies throughout the Cnite'
States the same corporate powers an
restrictions with respect to their tinar
cial operations and the same dutie
and obligations to the public and tn
government, so that every investor wi
know precisely what every railroa
corporation may and may not lawful
do"
Judge Lovett contended that the 81
luton of these problems and dificu
ties rested with congress. He told tn
committee that under the constitutio
The authority of the federal govern
ment is paramount, that congress hs
} tie power to legislate for centralize
. control of railroads mder federal cha
tGrs and that it only remains for th'
Gody to exercise that power,