The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1917-06-21
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 Nceded-Federal
Incorporation of Railroads BY Gener-
al Law Favored.


and Related System Nceded-FederaI
Incorporation of Railroads BY Gener-
al Law Favored.
Washington, March 26.- Responsible
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. IniS was the state
ment of Judge Robert $. Lovcrt, 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 Loyett undoubtedly had
in mind the decision of the supreme
court on the AdamSou 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,
ity," said Judge LOVctt, but it rests
primarily on 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 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 as ours, for
| people situated as we are, to blunder
| along with a series OF unrelated, incon-
| sstent, conflicting statutes enacted BY
| different states without relation to
each other, instead OF providing com
| pletc and carefully studied and pre-.
| pared system of regulation for a busi
1
nation is worse than folly"
He summed up the present problems
and difficulties of the railroads as fol.
| lows:
First.-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 o..
rates i'll 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 i'll 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 tic
up and suspend the operation Of the
, railroads of the country by strikes anG
violence and the absence of any law
to compel the settlement of such dis
putes by arbitration or other judicia
means, as all ether issues between cit1
Zens in civilized states are to be set
tied.
Fifth.-The phenomenal increase IL
, | the taxation of railroads i'll recen
y years. '
SiXth.-Thc cumulative effect o
2 these conditions upon the investing
l public, to which railroad Companie
must look for the capital necessary t
i continue development.
: 1--WE believe thai the uniIication o
Y regulation is essential" said Judg
Lovett, "und that with the rapid in
n crease of state commissions i'll rccen
|, years. congress viii in time be con
. pelled to exercise its power in th
: premises. TO unity regulation thCr
should lie complete, ha|mon.olS, con
e siStcnt and reMicd &rstan.. We ht
: lieve the best. if not the only practica
i plan. is tie federal incorporation c
3, railroads by general law. which wi
II make Incorporation Hereunder con
. pulSory, thus imposing on all railroa
:, companies throughout the Unite
Q States the same corporate powers an
= restrictions with respect to their tinaI
cial operations and the same dutic
and obligations to the public and tn
, government, so that every investor wi
y know precisely what every railroa
y corporation may and may not lawful
do.'
e Judge Lovett contended that the 81
d luton of these problems and difficu
n ties rested with congress. He told til
" committee that under the constitutio
! the authority of the federal govern
= ment is paramount, that congress ha
- the power to legislate for centraliZe
L control of railroads under federal cha
70 tors and that it only remains for thi
body to exercise that power
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