Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-12-31

Incomplete Government Control.
BY J. c. DAVIS,
Director General OF Railroads of the United States

Before considering changes in the
existing national transportation act at
,tention should be given to the fact that
this great law goes forward rather
than backward, so far as Government
regulation is concerned. It grants the
Interstate Commerce Commission
plenary authority to supervise and con-
troll the issue of all kinds Of securities.
stocks. bonds and notes; to pass on
consolidation and leases; TO control
car supply and distribution, the joint
use of terminals, the construction of
new lines and the abandonment of old
lines. the proper division of joint rates,
the control and regulation OF local
rates to the extent that such rates at
feet interstate commerce, and the COM
plete control of all interstate rates.
absolutely depriying the carriers of
any authority as to charges for serv-
ices upon which their operating in
come wholly depends
AS a matter of fact, the only right
that IS left to the owners of our
railroads is the privilege of exercising
the competition of good service. under
the multiplied restrictions Of existing
laws. So far as regulation Is con
cerned, a fence has been constructed
around the railroads that, in the
language of agriculture, is hog tight,
horse high and bull strong"
x
The truth of it is that, through a
long series of major, and in some in
stances very painful, legislative oper-
ations, carried on without the use of
aneStheticS, the railroads have been
thoroughly domesticated. completely
house broken. If they ever had any
lfangS their fangS have long since been
drawn.
The Government, having exercised
control of the operation of the carriers
in such minute and essential details.
cannot escape the responsibility of
affording to the owners of the prop
erty, which has thus been taken for a
public use, a fair return on it's value.
This right to a fair return, under eff
ficient, honest and economical manage
ment, is recognized by the existing act,
and is based upon familiar constitu-
tional provisions-provisions upon
which rests the foundation of our Gov
eminent, and which are essential to
it's very existence, viz, that private
property shall not he taken for a pub
| lie use without due compensation
1t is unfortunate that the general
public, especially the shippers of the
products of the farm, do not seem to
understand the true situation of the
carriers in their relations to the pub
are under Government control, and
what little discretion their managing
officers have in shaping the destinies
of the properties in their charge. In
this new era of railroad transportation
the carriers by rail must stand or fall
with the Government.
Y X x X
The broad scope of the plan and the
great object of the national transpor-
tation act are not generally recognized
and understood. Mr.. Chief Justice
Taft, speaking for the Supreme Court,
said
1.-The new act seeks affirmativeIy to
build up a system of railways pre-
pared to handle promptly all the in
terstate traffic of the country
and, by fixing rates for interstate
commerce, and in case of discrimina-
| ton, for interstate commerce, to Sc
cure fair return upon the property
of the carriers"
The act in it's purpose is far reach
ing. It's object is to create a co-ordi-
mated and efficient. national system of
! transportation, affording all our peo-
pie, from ocean to ocean and from
lakes to gulf, adequate means of
transportation, efficiently, economic