Arizona republican., 1922-06-25
Ry Erederic j. Haskin

by EIcQCItC EIdSkin
WASHINGTON, D. C. June 10
The suggestion of secretary of trea-
sury Mellon that the American rail-
roads need a holiday during which,
for a period of five years or more,
government regulation, has provoked
renewed discussion of the whole
question of railroad operation.
The swing of the pendulum back
toward a consideration of relaxed
railroad regulation is believed to
mark one of the cycles of develop
ment peculiarly characteristic of
American progress. A curious coin
cidence is that Glen Plumb, the au-
thor of the Plumb Plan constituting
the farthest swing Of the pendulum
in the direction of radicalism, is re-
ported to be on his death bed, fol-
lowing a prolonged illness. Mr..
Plumb's health is reported to be so
impaired that, even though he might
recover from his present Illness. he
could not take up the leadership Of
transportation reform again His
absence from this field would remove
one of the strongest opponents to re-
laXed railroad regulation in the coun-
try
Mr. Mellon based his suggestions
for a railroad holiday on the theory
that the carriers could work out of
their present financial difficulties
more speedily if they We're free of
the interference Of such bodies as the
Interstate Commerce commission. Mr..
Mellon believes that if the railroads
were permitted to operate indepen-
IDENTIFY, they would. through the force
of competition, reduce rates to a point
~ IL
benefit The Secretary points out
that in the days before regulation,
rates for transportation of freight
and passenger fares We're much lower
than now and that the history of
railroad rate regulation in the
United States has been a history of
progressively increasing rates.
Mr. Melons suggestion has been
received with much interest, and 1t
seems likely that whole new crop
of proposals for railroad relief will
spring UP in its wake. These may de-
velop into new general investiga-
tion of the transportation situation
by a congressional committee.
Opposes Too Much Regulation
Some members OF the Interstate
commerce comission have shown
leanings toward the belief that too
much regulation is not good for the
railroads and not good for the public
Mark Potter, a member of the COM
mission. in recent opinions in cases
before that body. has expressed Of
ficially the view that the Commission
arrogates to itself powers too sweep.
ing and inyades the field of manage
ment of the railroads, whereas. under
the law, it should restrict its actlVl-
ties to a detached and impersonal
judging of right and wrong in rail-
road cases, within the meaning OF the
act to regulate commerce.
The first dissent from the practice
which in recent years has grown up
of regulating the railroads as though
they were owned by the commission
was expressed by the late commits
sioner Clements in the second five
per cent case. In that case the rail-
roads asked for rate increase,
claiming that they could not make
money unless they received higher
rates. The commission agreed with
this view and granted the increase,
but commissioner Clements dissented
from the majority opinion and de-
clared that il all a railroad had to DO
to get a rate increase was to prove
that it needed money. the burden OF
proof of why an increase should be
granted, which is placed by the
statute on the railroad, had become
light and easy to carry.
1t was the opinion of Commissioners
Clements that the abstract business
of specific charge for carrying
given commodity a certain distance
should. be the measure of regulation
and that the commission had no Legal
right to give or withhold a rate IN
crease in the basis of whether or not
the carriers needed the money. This
he regarded as alien to the commits
sion's function and an assumption OF
a managerial duty.
The commissioner stood practically
alone then but since his time--that
is, in the last five or six years
others have taken practically the
view. Mr.. Mellon has crystalized 1t
in his aphoristic statement that the
remedy is a railroad holiday.
1t is argued that under a relaxed
regulation the public would get
measureably better service because
each railroad would be on it's mettle
not only to cut rates lower than its
competitors but to give such service
that its facilities would be preferred.
1t is claimed that when railroad OPP
GRAFTON is carried on in a network or
regulations and rules which dictate
to nicety practically every func-
ton of management. great. progress
sive executives and alert. capable