Catoctin clarion., 1917-03-29
RAILROAD SITUATION
IS NOW LARGELY
Up TO CONGRESS
Must Share Responsibility In
Future Development.
ROBERT S. LOvETT'S VIEWS

SHIHCdtioN OF, neSulation Is E88enttais'
A Complete, Harmonious, Consistent
and Related System Nesdsd-Fe edsral
incorporation of Railroads by Gener-
al Law Favored.
Washington, March 2G.-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.
I'VE have our share of responsible
,t,, Il lad, I .l,,,4
primarily on congress. When the gov
ernmeut 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 II country such as ours, for
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 q CON-
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:
FlrSt.-The 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 in ia
vor 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 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 cOnspracies 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 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 unification of
regulation is essential" said Judge
LONeIC, tlul Will Iue tdplti III
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 complete, harmonious. con-
sistent and related system. We be-
lieve the best, if not the only practical
plan. is tire federal incorporation Of
railroads by general law. which will
make incorporation thereunder COM
pulsory. thus imposing on all railroad
companies throughout the United
States the same corporate powers and
restrictions with respect to their tinan-
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 a centralized
control of railroads under federal char
ters and that it only remains for that
body to exercise that power.
49,