Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-11-14
SUGGESTS GROUP SYSTEM
OF RAILROAD REGULATION
Frank Trumbull Protests Against
Chaotic Conditions of State
Commissions.
WHAT WAGON ROADS COST
Chairman Of c. Il 0. Board Says Gov
ernmental Valuation OF Highways
Would BE Interesting Comment on
Government Ownership.

In a recent address n. Chicago, Frank
Trumbull. chairman of the board Of iii
rectors OF the Chesa =, AXE and Ohio
Railway made several points which
have attracted wide attention. in rail
road circles. Among the suggestions
MADE by Mr.. Trumhull WAS that tho
railroads of the country should he
regulated In manner based on the
principle OF the Federal reserve bank
system.
In other words. the railroads should
be ruled by regions and not ny STATES.
He declared the present system is
chaotic and pointed out That willie
the railroads could not have dilfc! eni
scale OF wages in different States. yet
the rates on intrastatc traffic vary.
II shall no; undertake. 10 describe"
said Mr.. Trumhuli, the picccmcal.
patchwork burdcnsome ana conflict
ing State regulation Of railroads.
Freight cars go everywhere. and II
the railroads OF Texas. for example
be crippled. there is impairment and
waste not only in Texas uui IL every
State.
CRUDITIE> IMPOSE GREAT
BURDEN On RAILnOtDS
so far rs ! know. no ono has yet
assembled in ono tragic exhibit the
needless expense. thu crt;d!tic.'. and the
irrcparabic lossrs whicn this intcriock-
ing regulation has impose! upon rail
way administration. Omit,inp figures
but stating facts. what il tie sitra-
ton OF the railroads OF tau country.
considered ;.s whole: Their net oper-
"tinE income for the fiscal year enaci
June 20. 1919. Was not ~ great as IN
1910, 1911. q, 1912, ana lii. loss In com
oarisoa with l?l2 was even i.rrater
mere are now ahu:IGant crops ANA va
rlous signs OF returning prosperity, but
~.
ncnt or only hectic"
In the last -four years probably not
less than sl.5tu.oeo ,00o has been dcd;-
Gated b. private investors TO ;he pub
NC service IN the form Of additional
railroad property. but. as | have said
the net operating income al the rail-
ioaus mas been diminished. Is il any
wonder tina; there is practically no an
petite for fresh railroad development.
particularly ut time when Investors
can get high rates OF interest au, his.
profits otherwise II 81 100 0ou, o0o has
been required during years uc restrict
ed business. why Not that much or
more N the gears that are Immediate
" ahead OF us-y"ars .: possibly
greatly Increased traffic" Where Is tho
reserve preparation for il" II we have
nlE business. will the ,raNsporta-
tion machine break down. and IL il
does. Who viii allay the Irritation" MAY
not the shippers, while saving in rates.
nave riskea their proiits' do no,
argue the question or government own
crship.
SUGGESTS NALI ALTON
OF WAGON ROADS
The soNernmcm, has owned the
wagon roads OF this country for 800
Years and they are sufficient answer
IL would be interesting. would IL not tn
nave governmental valuation of the
wagon roads SHOW ing. ~ i'm the ease
....i,,.
date, thc cost Of reproduction. etc
'Flease understand that | make no
protest against regulation Of railroads
ny public authority. Wise reg ulation is
In the public interest but regulation To
he successful must be responsible. i,
must be consistent; ii must ,royide
some sort of assurance to future in
Nestots ms Ia treatment which thcy will
receive lf the treatment is uisEardly.
even in few States. railroad invest
ment VIII he restricted. If the treat
n"nt - liberal railroad :uN"Stmcnt md ,
enterprise VIII be stimulated Tic f,n-
damcnfal weakness of The p.csrn, stu !
aton is that lay reason Of the neon.
Sistency. the comrlcXity. ard often the
contradictions. Involved Ia the present
system OF regulation. the railroad Off.
Ger cannot make any promises as To
the treatment watch Investors in his
property Will receive. That is - ,ifti !
cult posit!?il III which 10 uut amy cou
Scien,ious" .n,:.4.!'' seeking additional
carital'" Ae:,!il.- 80 matte: how we'll ~.
satisfactorily t!ic Interstate Commerce,
Commission may do its work. the en-
tire fabric can be- uisarrauscd through
countcracting influence Of State COM
missions ANA legislative bodies"
Nor" and more people, MIR. Trumbull
continued, are COMING To- i,cllcve that
what the United states AIs done Toy its
banking system should also he done
FOR the common carriers He limited
mat one way Of finding q regulatory
system better than the present would I
ne 10 group the states into rcgiona.
sections much ~ the Federal reserve !
system IS arranged.