HEARINGS BEFORE THE JOINT COMMITTEE ON INTERSTATE AND FOREIGN SIXTY-FOURTH CONGRESS FIRST SESSION PURSUANT TO PUBLIC J. RES. 25 175 A JOINT RESOLUTION CREATING A JOINT SUBCOMMITTEE FROM THE Part 1 NOVEMBER 20, 23, AND 24 Printed for the use of the Joint Committee on Interstate Commerce WASHINGTON GOVERNMENT PRINTING OFFICE HE2705 1916 iE4 JOINT COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE. FRANCIS G. NEWLANDS, Nevada, Chairman. WILLIAM C. ADAMSON, Georgia, Vice Chairman. JOSEPH T. ROBINSON, Arkansas. 2 THETUS W. SIMS, Tennessee. EDWARD L. HAMILTON, Michigan. FRANK HEALY, Clerk. WILLIS J. DAVIS, Assistant Clerk. D. of D. JAN 29 1918 PRELIMINARY STATEMENT. INVESTIGATION OF THE CONDITIONS RELATING TO INTERSTATE AND FOREIGN COMMERCE AND THE NECESSITY FOR FURTHER LEGISLATION RE LATING THERETO. CONGRESS OF THE UNITED STATES, Washington, D. C. 1. INITIATION OF PROCEEDINGS. The initiative of the proceedings provided for by Senate joint resolution 60 was taken by President Woodrow Wilson in a message to the Congress of the United States, presented December 7, 1915, in the following words: 2. PRESIDENT'S MESSAGE. "In the meantime may I make this suggestion? The transportation problem is an exceedingly serious and pressing one in this country. There has from time to time of late been reason to fear that our railroads would not much longer be able to cope with it successfully, as at present equipped and coordinated. I suggest that it would be wise to provide for a commission of inquiry to ascertain by a thorough canvass of the whole question whether our laws as at present framed and administered are as serviceable as they might be in the solution of the problem. It is obviously a problem that lies at the very foundation of our efficiency as a people. Such an inquiry ought to draw out every circumstance and opinion worth considering, and we need to know all sides of the matter if we mean to do anything in the field of Federal legislation. "No one, I am sure, would wish to take any backward step. The regulation of the railways of the country by Federal commission has had admirable results and has fully justified the hopes and expectations of those by whom the policy of regulation was originally proposed. The question is not what should we undo. It is whether there is anything else we can do that would supply us with effective means, in the very process of regulation, for bettering the conditions under which the railroads are operated and for making them more useful servants of the country as a whole. It seems to me that it might be the part of wisdom, therefore, before further legislation in this field is attempted, to look at the whole problem of coordination and efficiency in the full light of a fresh assessment of circumstances and opinion as a guide to dealing with the several parts of it." 3. THE RESOLUTION. Senate joint resolution No. 60 was introduced in the Senate and, after amendment by including the investigation of Government ownership, was adopted by both Houses of Congress. It was approved by the President July 20, 1916, and reads as follows: "[Public Resolution-No. 25-64th Congress.] "[S. J. Res. 60.] "JOINT RESOLUTION Creating a joint subcommittee from the membership of the Senate Committee on Interstate Commerce and the House Committee on Interstate and Foreign Commerce to investigate the conditions relating to interstate and foreign commerce, and the necessity of further legislation relating thereto, and defining the powers and duties of such subcommittee. "Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Interstate Commerce Committee of the Senate and the Committee of the House of Representatives on Interstate and Foreign Commerce, through a joint subcommittee to consist of five Senators and five Representatives, who shall be selected by said committees, respectively, be, and they hereby are, appointed to investigate the subject of the Government control and regulation of interstate and foreign transportation, the efficiency of the existing system in protecting the rights of shippers and carriers and in promoting the public interest, the incorporation or control of the incorporation of carriers, and all proposed changes in the organization of the Interstate Commerce Commission and the act to regulate commerce, also the subject of Government ownership of all public utilities, such as telegraph, wireless, cable, telephone, express companies, and railroads engaged in interstate and foreign commerce and report as to the wisdom or feasibility of Government ownership of such utilities and as to the comparative worth and efficiency of Government regulation and control as compared with Government ownership and operation, with authority to sit during the recess of Congress and with power to summon witnesses, to administer oaths, and to require the various departments, commissions, and other Government agencies of the United States to furnish such information and render such assistance as may, in the judgment of the joint subcommittee, be deemed desirable, to appoint necessary experts, clerks, and stenographers, and to do whatever is necessary for a full and comprehensive examination and study of the subject and report to Congress on or before the second Monday in January, nineteen hundred and seventeen; that the sum of $24,000, or so much thereof as is necessary to carry out the purposes of this resolution and to pay the necessary expenses of the subcommittee and its members, is hereby appropriated out of any money in the Treasury not otherwise appropriated. Said appropriation shall be immediately available and shall be paid out on the audit and order of the chairman or acting chairman of said subcommittee, which audit and order shall be conclusive and binding upon all departments as to the correctness of the accounts of such subcommittee. "Approved, July 20, 1916." 4. MEMBERSHIP. Following the adoption of the resolution the following Members of the Senate and House were appointed members of the joint subcommittee: Senate.-Francis G. Newlands, Nevada; Joseph T. Robinson, Arkansas; Oscar W. Underwood, Alabama; Albert B. Cummins, Iowa; Frank B. Brandegee, Connecticut. House of Representatives.-William C. Adamson, Georgia; Thetus W. Sims. Tennessee; William A. Cullop, Indiana; John J. Esch, Wisconsin; Edward L. Hamilton, Michigan. 5. ORGANIZATION. The members of the joint subcommittee met and organized, selecting as chairmen Francis G. Newlands and vice chairman William C. Adamson. They also appointed Frank Healy as clerk of the committee and Willis J. Davis as assistant clerk, and designated Messrs. Galt & Hull, Southern Building, Washington, D. C., as official reporters. 6. DATE OF HEARINGS. The date of the first hearing was set for November 20, 1916, at 10 o'clock a. m., at room 326, Senate Office Building, Washington, D. C. 7. ARRANGEMENT OF HEARINGS. It is the desire of the committee to give ample opportunity to all interested in or having any relation to the subject matter of the proposed inquiry to express their views. But the committee would like early notice of the subjects to be discussed by the various persons appearing before it, so that the hearing can be, as far as practicable, in orderly sequence as to subjects. The purpose of the committee is to hear regarding Government regulation and Government ownership the opinions of economists and publicists of eminence, representatives of the Interstate Commerce Commission, the National Association of State Railroad Commissioners, State railroad and public utility commissions, representatives of the railroad executives and labor organizations, representatives of farming organizations and farmers, shippers and bankers, representatives of chamber of commerce, and other important business and industrial organizations. 8. SUBJECTS TO BE CONSIDERED. The subjects to be considered are stated in general terms in the joint resolution and cover- FIRST. the subject of the Government control and regulation of interstate and foreign transportation," including therein specifically: (a) the efficiency of the existing system in protecting the rights of shippers and carriers and in promoting the public interest." (b) (c) the incorporation or control of the incorporation of carriers." and all proposed changes in the organization of the Interstate Commerce Commission and the act to regulate commerce." SECOND. the subject of Government ownership of all public utilities, such as telegraph, wireless, cable, telephone, express companies, and railroads engaged in interstate and foreign commerce," including specifically: (a)" utilities." (b) the wisdom or feasibility of Government ownership of such the comparative worth and efficiency of Government regulation and control as compared with Government ownership and operation." 9. GOVERNMENT REGULATION AND CONTROL. Under this head, without excluding other questions, attention is particularly called to the following subjects: (a) Whether the Interstate Commerce Commission is overloaded and whether its jurisdiction should be confined to questions of discriminations, rebates, and rates, its jurisdiction over other subjects, such as valuation, safety inspection, etc., to be turned over to some other body or bureau to be created by law. (b) Whether it is necessary to make any change in the organization of the Interstate Commerce Commission with a view to prompt and efficient action; whether it is feasible to increase the number of commissioners and to permit them to divide into several departments for the consideration of cases, and if so whether there shall also be consideration in bank and also whether there shall be appeal from decisions in the department to the commission in bank. (c) Whether such departments of the Interstate Commerce Commission shall sit in Washington or be assigned to definite traffic areas somewhat after the manner of the judicial circuits, and whether in the latter case there should be provision for their sitting in bank at Washington or for some central body in Washington with the duty of hearing appeals and directing the precedure of the departments. (d) Whether under the present system the credit of the common carriers is assured with a view to their securing the moneys needed for necessary improvements and extensions in the interest of the public and at reasonable rates of interest. Whether Government regulation of the issue of securities is advisable, and if so whether it is to the interest of the public as well as the carriers that this regulation should be exercised by the National Government and whether It should involve merely publicity or absolute control of the issue of securities. Whether concurrent jurisdiction of the Nation and the States to control such issues is in the interest of the carriers and the public. What will be the field of operations for the State railroad commissions in the interest of the public if the control of securities and the control of rates is vested in the Interstate Commerce Commission. Whether and to what extent within a period of five years it will be necessary to enlarge the facilities of the common carriers in the interests of the public and whether the present system of Government regulation is such as to insure the credit of the carriers with a view to their making additional necessary expenditures. (e) What is the effect of dual regulation on the parts of the States and the Nation of the rates of carriers. What, if any, contradictions does it involve, and what, if any, discriminations does it involve as between States and localities. (f) Whether or not any regulation is feasible of the wages and hours of employees of common carriers, and whether or not it is advisable, in the interest |