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John Bull shouldn’t b i i i
€ too previous
sin taking Uncle Sam He'
Sadiite i g for a fool. He's had two or three surprises
The Railroads to Re-enter Politics Under Wiison
* Advocates of the President’s repeal bill systematically decry
the value of water competition as a regulator of railroad rates.
If it were as ineffectual a regulator as they would have it ap
pear they would be vigorously for a free canal instead of trying
to close it to the coastwise ships.
The railroad representatives in the Senate have suddenly be
come mightily enamored of the Interstate Commerce Commis
sion. Why risk international complications, they ask, by opening
the canal to the coastwise ships of the United States without tolls,
when absolute control of railroad rates is vested in the Interstate
Commerce Commission?
The purpose is, therefore, to curb the Panama Canal as a
restrainer of railroad rates, and then to pack the Interstte Com
merce Commission with men who are friends of the railroads.
The case of the latest appointee, Winthrop M. Daniels, whose
confirmation was accomplished in the Senate by a trick played
by the Administration forces upon Senator LaFollette, is sig
nificant.
President Wilson's long-time acquaintance and personal se
lection, Daniels, possessed a record of friendliness to railroad in
terest, which, when exposed, made the Senate balk. But it
abashed the President not a whit. He knew it; was thoroughly
acquainted with the Daniels record in all its phases, and there
fore appointed him.
As a member of the Public Service Commission of New Jer
~sey, Daniels laid down the proposition that in considering the
value of property on which a public service corporation is en
titled to earn dividends the value of the franchise should be con
sidered.
This is in flat contradiction of modern ideas on the regu
lation of public service corporations. The franchise is in effect
a loan from the people to the corporation. The Daniels theory
would have the people making the loan afterward pay interest on
it to user of the loan.
—————i THE
ZENT ST - enD
\ ¥_,/ .|.|.1.|.5-:; ‘ _OR‘ ;lAN
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Cherishing this conviction, Daniels will be an invaluable man
to the railroads on the Interstate Commerce Commission just
now, when a valyation of their physical properties is being made
with a view to the establishment of equitable rates.
But a man who is willing that the roads should be allowed
to base their rates on the estimated value of franchises which cost
them nothing is to be classed as a railroad man through and
through.
That is why the Administration appointed him and jammed
through his confirmation against the protest of LaFollette and
progressive Senators of all parties.
Prior to the Daniels appointment the President appointed
as commissioner, Henry C. Hall, of Colorado, ‘‘tco obscure to
awaken distrust,”’ as a Senator expressed it. Hall was through
out his business and professional career dependent upon railroads
for his livelihood. At one time sent by railroads to market their
bonds in London, he later settled down to the practice of railroad
law. How serviceable he will be to the people as a member of the
Interstate Commerce Commission is readily estimated.
In view of this reorganization of the commission to the rail
road liking, the eagerness of the roads to substitute commission
regulation for the automatic regulation effected by the competi
tion of the canal is clear enough.
Pack the commission with railroad attorneys. Make the
Panama Canal costly to American ships using it. Then the rail
roads can raise their transcontinental rates.
To cloak the railroad raid upon the canal the cry has been
raised of diplomatic difficulties and menace to the national safety.
The excuse would never have been pleaded when this nation was
weak. It is humiliating now when the nation is strong; no real
Democrat would plead it.
A national surrender to the railroads was sufficiently humi
liating. To add to it the surrender of our national sovereignty
over the Panama Canal and the right, established by the Consti
tution, to regulate our domestic commerce is inconceivable.
Week Ending
April 14,1914,