The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1917-12-05
RAILROADS IN NEED
OF IMMEDIATE HELP,
SAYS |. C.. c. REPORT
Suspension Of Antitrust and Anti
pooling Laws Suggested; Gov
ernment Loan Considered Ad.
visabie, Also Rate Advance.
~ Associated Pres.

Sommorce commission today that toI
affect the unificntion Of railroad re-
sources FOR the war. antitrust and
anu pooling laws should be suspend
ed
In addition. the commission de-
clarcd railroads should receive "A gov
eminent loan ana that issue of rail-
road securities should he vested in
some special body Some advance In
rates Is imperative. the commission
said a. war emergency
The alternative for such voluntary
uuification ~ the railroads. the COM
mission declared. would lee govern
ment operation with suitable guaran-
~ of AN adequate annual return as
well as for upkeep with fair terms
on which Improvements during the
period OF government operation could
he paid for u, the roads upon return
Of their property
The recommendation. signed by
Chairman Hall. were accompanied by
"a supplementary report hy Commits
sioner MoChurd. who said ne be-
lieved tnat if the president would
take over operation or the railroads
vastly improved transportation CON
ditions can be promptly secured"
After reviewing the extraordinary
demands on the railroads during the
past year ana the increases in labor
/ ana material costs. the commission :
! special report SAYS.
The act To regulate commerce was
/ not enacted To- meet such "a sitgaiion.
The carriers hnye the right 10 de-
mand at our hands. and II is our duty
to approve. Just and reasonable rates
,ufficient To yio,d fair returns upon
: the value of the property devoted 10
! public use after necessary eNpendi-
/ lures. Measured
/ In dollars. the gross revenues ~ the
carriers during the past and current
! fiscal years exceeded any In their HIT
tory. Bui what che dollar win buy In
! labor. material ana supplies rs sub
stantially less.
! we are sensible Of the vital and
! imperative need OF the hour that our
railroads shall not be permitted 20
| become less efficient or less sufficient.
/ We realize the gravity OF IL serious
! breakdown of our transportation Ia
! ciliiies II is unthinkable that this
! breakdown would be permitted II II
! cou,d ue prevented Increased charge
for carriage 30 found necessary Ia
/ take curc of unavoidable increases IN
operating expenses, would not at This
time bring new capital on reasonable
terms in important sums.
In our opinion the situation does
not permit OF temporizing. Ail cner'
gics must be- devoted to bringing the
war to "a successful conc iusiou aud tt
that end ID h. necessary that oul
transportation systems ho placed ans
kept on the plane Of highest eff!cicn
cy This can only be secured through
unification OF their operation dur.n.
the period OF the war.
"lf the unfCation Is to be effected
by the carriers they should he en-
auicd To effect 10 IN lawful WAY. r,
that end IN our Judgment, the oper
alton uf the antitrust laws. except b
respect Of cunsolidations or merger
/ or parallel and competing lines a
applied to rain and water carriers sub
irct to the act To regulate commerce
F, and ur the anti-pouling provision -
section of that act, should be- sus
. pended durirs the period OF the wa
/, and until further action by the con
q grcss.
In addition they should be- pro
d yidcd from the government treasur
, with financial assistance In the forr
| uf loans on advances FOR capital pur
I poses in such amounts. on such con
, i,drrltiou- and under such super
vision OF expenditure as may bee de
Z tcrmtncd hy appropriate authority
As "a necessary coucnmitnnt. IA
regulation uf security issucs ~ con
mon carriers cuEuEod in interstai
Commerce should Zoe Vested iu som
! appropriate body us hhs been recon
j.. mrudud iu our annual reports. III
rights % shippers for rcasunHb
rates aud on discriminatory scrNl'
under the present jurisdiction ut u
commission need not %" seriously 80
terrfercd with hy such unified cor
troll Some elastic provisions for e.
tnblishment Of new routes pt"ht.
, would uc needed
~! the other alternative ho adopt
3 and the president operates the ra
roads as amt durus the period
the war there should be, Zoo uur Opt
ion. suitable guaranty 90 ench carri
+, ~ AN adequate annual return fur o.
Of the property as v,' rs OF ir 20
keep and maintenance duriu- npcr
tiou. wsih provision for fair terms
which improvements and hetteruei
made POS the president dur,ug 2
~ period uf his operation could hr p,
~ Tor hy the carrier upon return to
p" ut the pruu,rtN after expiration
'h that period
Commissioner MFthord agreed
'n general with the commissions mali