Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1917-04-06
Must Share Responsibility In
Future Development.
ROBERT S. LOVETT'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
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. 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.
"We have our share of responsible
| ity," said Judge Loyett, "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 q 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 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 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 devolving upon it IN
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
| 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 judicial
means, as all other issues between citi-
| zens in civilized states are to be set
| tied.
Fifth.-The phenomenal increase in
| the taxation Of railroads in recent
years.
Sixth.-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 unifcation 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 its power in the
premises. TO unity regulation there
should be a 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
the authority Of the federal govern
ment is paramount, that congress has
the power to legislate for centralized
control OF railroads under federal char
tiers and that it only remains for that
body to exercise that power.