Evening Republican, Volume 20, Number 283, Rensselaer, Jasper County, 25 November 1916 — CONGRESSIONAL COMMITTEE BEGINS RAILWAY INQUIRY [ARTICLE]

CONGRESSIONAL COMMITTEE BEGINS RAILWAY INQUIRY

Proposed by President to Better Condition ot Carriers. MAY CHANGE PRESENT SYSTEM Official* of Road* Prepared to Advocate Federal Incorporation, Supervision of Securities and Extension of Authority of Interstate Commerce Commission. Washington, Nov. 20.—Ten members of Congress, five Senators and five members of the House of Representatives, began here today an inquiry Into the subject of public control and supervision of railroads that may lead to the revolutionizing of the whole scheme of governmental regulation of the country’s transportation Hues. Incidentally the committee is to look Into the question of government ownership of railways, telephone and telegraph lines and express companies. The members of the committee which will conduct this Important Investigation are Senator Newlands of Nevada, chairman; Senators Robinson of Arkansas. Underwood of Alabama, Cummins of lowa and Brandegee of Connecticut, and Representatives Adamson of Georgia, Sims of Tennessee, Cullop of Indiana, Esch of Wisconsin and Hamilton of Michigan. The inquiry was recommended by President Wilson in bls message to Congress In December of last year. He described as its purpose to determine wirat could be done “for bettering the conditions under which the railroads are operated and for making them more useful servants of the country as a whole.” Prominent Men as Witnesses. In order to obtain the views of all Interests affected by the operations of the transportation lines the committee has invited prominent shippers, bank ijers,'representatives of commercial orrailway executives, economists .and others to appear before them. The first to be heard are railroad commissioners of various states who began their evident today. Their testimony is directed chiefly to opposing any enlargement of the federal authority. overt commerce that would detract from the powers now exercised by state bodies. They will be followed shortly by officials of railway labor organizations who are expected to register their opposition to the increase of governmental authority over wages and conditions of labor. Chief interest In the hearings centers In the proposals that will be put forward by representatives of tne railroads, for It Is reported that they will advocate an extension of federal authority over rates and securities to the practical exclusion of state control of these matters. It is understood also that they will go on record in favor of federal incorporation of all railroad lines. Legislative Program of Railroads. From an authoritative source is obtained the following outline of the legislative program which the railroads will ask the committee to consider In its investigation: They will endeavor to demonstrate to the commission that one of the principal defects in the present system of railroad regulation Is the lack of coordination resulting from the simultaneous and conflicting regulation by the federal government and by the 48 states. They will, therefore, ask that entire governmental control of the rates and practices of Interstate carriers, except purely local matters, be placed In the hands of a federal body so that Interstate traffic may be regulated without reference to state lines, leaving to the state commissions jurisdiction only over local matters and local public utilities. As a part of this plank a compulsory system of federal incorporation is’ to be recommended, accompanied by federal supervision of railroad stock and bond Issues. A reorganization of the Interstate Commerce Commission will be asked, in order to enable the commission prop-erly-to exercise its increased powers. It Is also proposed that the preparation and prosecution of cases against the railroads shall be delegated to some other agency of the government, possibly the Department of Justice, so that the commission may devote its energles to Its administrative functions. With the commission thus relieved of some of its present duties and equipped to handle its business more promptjy.ttie railroads will urge“lhat the period during which the commission may now suspend proposed Increases In be reduced from ten months to 60 days, with provision for reparation to be paid to the shippers If the advance shall be declared unreasonable. They will also ask that the commission be given the power to prescribe minimum as well as maximum rates so that in meeting complaints of discrimination the commission may order the advance of a rate which It considers Joo low. | One of the most important recommendations for which the railroads will ask favorable consideration IS that the commission be specifically authorized to take Into account In rate regulation the effect of rates upon total earnings In the *light of expenses. While the Newlands Committee Is required, under the resolution creating It, to submit a report by January 2 next, it is not anticipated that the Committee will have come anywhere near completing Its labors then.