Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-12-05
RAIL PROBLEM OF
WAR AS SUBJECT
c. S. Must Operate Roads Of Congress
Does Not Give Relief-Interstate
Body Makes Report

washington, Dec. 5.-GovernmentI
operation Of railroads for the duration
of the war, IL unification Of the trans
portation systems is not permitted by
congress, was recommended today by
the interstate commerce commission.
An increase IN rates, a government
loan of money, and the suspension Of
the antitrust and anti-pooling laws
as far as railroads are concerned for
the duration OF the war, were recon-
mended by the commission as an al
tentative.
After reviewing the extraordinary
demand on the railroads during the
past year and the increases in labor
and material costs, the commissions
special report says:
THE act to regulate commerce was
not enacted TO meet such situation.
The carriers have the right to de-
mand at our hands, and it is our duty
to approve, Just and reasonable rates
sufficient to yield fair returns upon
the value Of the property devoted to
public use after necessary expendi-
taxes. s.se-s ---ss->
Measured In dollars, the gross
revenues of the carriers during the
psat and current fiscal years exceed
any in their history. But what the
dollars will buy in labor, material and
supplies is substantially less We real
ize the gravity of a serious breakdown
of our transportation facilities. All
energies must be devoted to bringing
the war to successful conclusion,
and to that end it is necessary that
our transportation system be placed
and kept on the plane of highest effic-
iency. This can only be secured
through unifcation Of their operation
during the period OF the war.
"If the unifeation is to be effected
by the carriers, they should be en-
abled to effect it in a lawful way To
| that end, in our Judgment, the opera
ton of the antitrust laws except in
respect. of consultations or mergers
of parallel and competing lines should
be suspended during the period of the
war.
"ln addition they should be provided
from the government treasury with
/ financial assistance in the form of
loans or advances for capital purposes
in such amounts as may be deternin-
ed by appropriate authority.
THE regulation of security issues
/ of common carriers engaged in inter
state commerce should be vested in
/ some appropriate body as has been
recommended in our annual reports.
| If the other alternative be adopt
ed and the president operates the rail
roads as a unit during the period OF
/ the war, there should be, in our opin-
ion, suitable guaranty to each carrier
/ Of an adequate annual return for use
+ Of the property, as well as of its up
keep and maintenance during opera
ton, with provision for fair terms on
which improvements and betterments
made by the president during the per
iod of his operation could be paid fol-
by the carrier upon return of it to the
property after the expiration of that
period"
/ Commissioner McChord agreed IL
general with the commissions major
ity report, but insisted that govern
ment management during the war was
the best force, and that the next best
plan would be TO unity the various
government institutions now presum.
| ing TO dictate to the railroads. He
mentioned, as examples, the interstate
/ commerce commission, the priority di.
/ rector of the war industries board. thu
war and navy departments, the ship
ping board. and the fuel and food ad
ministrations. all OF which, he said
are issuing orders to the railroads.
'4In consequence" the commissioner
added "the industries devoted to wal
purposes and those engaged in theil
normal business are suffering, anC
railroad operation is approaching
chaotic condition I am convinced
that the strong arm OF governmental
authority is essential if the transpor
tation situation is to be radically i'm
proved. II the president elects to tax
possession and assume control of tn
transportation systems. I believe tina
vastly improved transportation condi
tons can be promptly secured.
i New York, Dec. 5.-WaIl Street
view Of the recommendations of tn
Interstate commerce commission IN re
! spect to the operation Of railroad
was that of approval IN SO far AZ sen
timent can be gagged by the moFemen
Of stocks. Rails rose from one t
three points and industriais foIiowe,
suit. The view appeared to be tha
the suggestions of the majority of tn
commission would be beneficial TO tn
railroads if adopted.