Evening Republican, Volume 21, Number 275, Rensselaer, Jasper County, 6 December 1917 — U. S. CONTROL OF ROADS FAVORED [ARTICLE]

U. S. CONTROL OF ROADS FAVORED

CONGRESS TOLD IMMEDIATE action is Necessary—’ OPPOSE POOLING SCHEME Immediate action to defeat a national unification of the railroads, either by government operation or by the suspension for the war of anti-trust and anti-pooling laws, a federal loan and regulation of security issues to permit more effective voluntary co-operation was recommended Wednesday by the interstate commetbe committee in a special report to congress. Neither plan was specifically endorsed, but an implication that the majority believed the railroads might successfully work out their own unification prompted Commissioner McChord to submit a separate report emphatically urging government control and saying “the strong arm of the government authority is essential if the transportation situation is to be radically improved.”

Any voluntary pooling plan would clared, because of the unaviodable influence of selfishness among roads.' There was no disagreement as to the proposition that competition among railroads must be diminished, if not altogether eliminated, to prevent a' serious break down of transportation of facilities under the war’s strain. The railroads own proposed solution for the fifficulties—an increase in rates in order to attract capital—was characterized as entirely inadequate by the commission. Even with more funds, the report said,the shortage of equipment could not be remedied materially hecanae of- the inability of industries \o manufacture it. Doubt also was expressed whether sufficient capital would be attracted in view of the flotation of such enormous quantities of government war securities. These considerations led the commission to what is considered an inevitable conclusion that a high state of efficiency could be maintained for the railroads only by thorough co-op-eration, elimination of duplication of routes and other elements of expense and energy and elimination of the economic waste which comes from competition. This would mean, it was pointed out, a complete reconstruction of the policies under which the railroads have been developed. "if the alternative of government operation under the direction of the president be adopted said the com mission, svitable guaranty of an adequate annual return should be given with provision by which the roads would reimburse the government for improvements after the properties are returning to private owners. The only hint of the commission’s attitude toward the railroads 'pending application /or fifteen per cent higher rates was given in an assertion that the roads are entitled to demand just and reasonable rates sufficient to yield fair returns, and the comment that although railway earnings in the past year have broken all records, the purchasing power of the earnings greatly decreased. ,