The Benson signal., 1917-04-07
RAILROAD SITUATION
IS NOW LARGELY
Up TO CONGRESS
Must Share Responsibility In
Future Development.
ROBERT 5. LOvETTS VIEWS

"Unification Of Regulation Is Essential"
A Complete, Harmonious Consistent
incorporation Of Railroads by Gener
al Law Favored.
Washington. March 2O.-Responsibi
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 CT Judge Robert s. LOvett. chair
man Of the executive committee Of the,
CniOn 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 Iovett undoubtedly had
in mind the decision of the supreme
court on the Adams0n law. handed
down last week. which establishes the
right Of the federal government to fix
railroad wages and to prevent strikes
i'iIis decision is regarded by railroad
ileu and lawyers as marking an epoch
in the development Of TRANSPORTATION
in the United States.
. 1tf Gil III
ity, said Tjudge Loyett. "but it rests
primarily Oh congress When the gov
ernment regulates the rates and the
financial administration of the rail
roads, the borrowing of money and the
issuance of securities il relieves the
railroad officers of the responsibility OF
providing aud devclopiu@ tranSportA
ton systems. except Within the limit.
of the revenue that can he realized from
such rates and under such restrictions
"E0r d country such as OURS. for Il
people situated as we are to buEticl
along with series OF unrelated. incOn
s.Stent, conflicting statutes enacted ly
different states without relation t.
each other, instead OF providing com
plete and carefully studied and pre-
pared system of regulation for Il bust
ness that is SO vital to the life of the
nation. is worse than folly"
He summed ulA the present problem
and difficulties Of the railroads as fo
lows:
First.-The multiplicity of reguln
item, by the several states with respect
to the issue Of securitieS involving de
lass and conflicting state policies gen
orally dangerous and possibly disas
troUs
Second.-The state regulation 0
rates in such manner as to undul
reduce revenues, to discriminate in fa
vor Of localities and shippers widths
It's own borders as against localities
and shippers in other states and to dtI
turo and disarrange the structure 0i
interstate rates.
Third The inability OF the Inter
state Commerce Commission, WhOeVe,
tie commissioners may be. to performs
;;.2 vast duties devOlving upon it TN
der existing laws. resulting in delay,
Wi:icl should never occur III CONNER
ri.l mattcls-and compelling the com
.lissiOncTs to accept the conclusions ol
their empoyeeA as final III deciding
.nattcrS Of great Importance Ito The
oameltial aa.i railroad interests o
,ne country
Fourth.-The practical legality thai
has been accorded conSpiracies to tx
up and suspend the operation Of tht
ai:oads Of the country by strikes and
Violence and the absence Of any law
10 compel the settlement Of such dis
putes by arbitration or other iudicin
means. as all ether issues between chi
Ycns In civilized states are to be set
He'd.
Fifth. The phenomenal increase il
the taxation Of raiir0Ads III reccn
Years.
Sixth. The cumulative effect q
these conditions upon the investiu
public, TO which railroad companic
must look for the capital necessary
! continue development.
/. We believe that the uniicatiOn o.
regulation is essential. said Judge
E.Gvett. "and that With the rapid IN
j. r2;jSe Of state commissions in rcccn
Years congress viii in time be con.
pellcl to exercise its power in til
premises. TO unity rcMulAtt;n ther.
>hUuld he IL complete. harmonious. con,
sistent aud related system We be
I:eve the best. if not the only practicu
plan is tht federal incorporation &
railroads by general law. which vii
make incorporation hereunder 4on
Wllsory thuS imposing on all rliroa
OmpanieS throughout the Unite
States the same corporate powers IN
restrictions with respect to their lillah
cal operations and the sane dutin:
and obligations 70 the public and I'll
government, so that every investor will
know precisely what every rAilroAt
corporation may and may not lawful
.lO"
Judge Lovett contended that the 81
ution Of these problems and dit.icu'
ties rested with congress. He told II
committee that under the conStiiHt;o
the authority Of the federal govern