New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-18
Favors Partnership Be-
tween Carriers and the
Government.
WOULD ADD TO RAIL
ROAD INVESTMENTS
Frisco Chairman Also Approves
Regulation of Issuance OF
Securities.

In response 20 request from the Com.
mittee on Interstate and Foreign Com
n cree r. F. Yoakum. chairman OF the
Frisco Railroad has sent TO that body
his views upon the subject of law re-
curing the approval of the Interstate
Commerce Commission Of securities issued
by railroads. Mr. Yoakum not only
favors such a proposition but goes still
further in recommending quasi CO
partnership" arrangement with the gov
eminent involving profit sharing plan
for interstate carriers operating under
federal charter.
~ national charter ne explains, need
not interfere with the authority OF state
railroad or public utility commissions i'm
supervision of intrastate business. or
state regulation. except as 10 the issue of
interstate securities These would come
under federal supervision only. and the
government would participate in the
rofts Of the road under an equitable
profit sharing plan The profits thus 30
cruing 10 the government could be dis
tIibuted for the benefit OF tho various
communities served by such railroad, as,
LOT example, tne hPhtfP VI hilpioN'u PN'-
lie highways
Mr. Yoakum cites as an example OF the
success Of the profit sharing Of corpora
tions and the public the surface lines OF
Chicago. where the city, Under a contract
ordinance adopted February II, 1901 re-
Ceves So per cent OF the net revenues.
v hich mp 10 now have aggregated about
81. 0O0Oco The success OF this arrange
mcnt he says. is further demonstrated by
the fact that a passenger can ride further
i'm Chicago for cents than IN any other
city.
(. If these results can Doe attained with
one of the largest city and interurban
systems or the country Mr.. Yoakum be
lieves the same principle can be success
fully carried out with railroad engaged
in interstate business
Evolution of public sentiment and
consequent legislation is Enthusiastically
tending this way" he says. II believe
that nothing short of a concrete expert
ment along profit sharing lines will salts
factorily determine Che question. There
are reasons why a working plan Of this
character with the government Is bet
ter than government ownership. Such 4
plan would tend 10 increase investments
i'm railroad properties. and. what is Of
more importance, would continue and en-
courage that strong individual initiative
force which has been the most potent
factor in the building up Of this coun-
try"
As to the issuance of securities by inter
state railroads. Mr. Yoskum is OF the
opinion that they should be subject 10
the approval Of the central government
for interstate railroads This would obv-
ate the different views that might arise
az to the necessity OF issuing securities
10 carry on development work.
Federal regulation ~ securities AMI
system OF cooperation between the gov
eminent and the railroads, he thinks
would lead TO cheaper money for their re
quirements. enabling them 10 more
economically handle their freight and
passenger business As an illustration,
Mr.. Yoakum SAYS that il the coal con
stunned by the railroads in 1913 could have
been purchased for % cents a ton less n
would have meant a saving IN the cosr
OF transportation of approximately
$i7. 900 go. also. reduction Of ~ per cent
i'm interest on the sllG0cOo00 funded
debt Of the railroads would effect an an.
rual saving Of $4,000 00o.
Government approval OF railroad SO
curity. according TO the chairman OF the
Frisco system. would In effect indorse II.
and such bond would consequently sell
AT the lowest rate Of interest current for
gilt edge securities. thereby reducing the
cost Of transportation.