The sun., 1917-12-06
Unit Operation by Roads or
Control by Government
the Alternatives.
SAFEGUARDSUGGESTED
Just and Reasonable Rates
Sufficient to Yield Fair
Returns Needed.
M'CHoRD MAKES DISSENT
In supplementary Report He
Says Management by Presi-
don't at Once Is Essential.
gpssass Des,ssoA to Tn. sux.

sbssiss Des,stoA to Tnp suS.
wAsnrx0roN, Dec. 5.-Ths railroad
question hes thrust itself forward a. one
Of SAs biggest domestic problems before
the President and Congress a. q result
Of special report made to-day to Con-
grsss BY the interstate Commerce Com
mission covering the railroad war situa-
tion.
in the nature Of . surprise. though be-
lieved now to have been foreshadowed
by the Presidents reference to the rail-
roads, yesterday appeared at first glance
10 be blow At the railroads in that II
placed as one Alternative their taking
over by the Government and their oper-
alton under Government oficlals for the
duration Of the war.
But careful reading Of tho report by
officials has brought the view that the
commission had actually come to the
railroads assistance and that under
either Of the two plans proposed for
their future management providing this
we're closely adhered to In whatever leg
islation is passed they would be much
better of than they are at present. The
FIRST. that the l. c. c. for the FIRST
time in the report filed to-day COM
mitted itself definitely to the principle
long contended for by the railroads
that they should have "just and rea-
sonable" rates sufiioient to yield fair
returns upon the value-not the cost
of the property. after all necessary
expenditures had been made and depre-
citation allowed for.
SECOND. that in the alternative plan
suggested for the operation Of the
reads by the President instead Of by
the railroad managers. the commission
pronounced ITSELF In favor Of suit
able guarantee" to each carrier Of an
adequate annual return for the use Of
the property by the Government. In
addition to IT'S upkeep and mainte-
nance and Government loans to pro-
vide for improvements and better
ments.
Tho opinion was expressed by some
railroad executives tonight that. all
things being considered. the railroads
would be Inclined to favor the plan for
Government control during the war. pro-
yiding they could be assured that Con-
sress would follow the suggestion Of the
commission and insure them such a
guarantee. Decision in the rate case Is
yet to be handed down.
What the commission to-day did was
10 come out in favor of the unihcation
of the railroads as a war measure and
10 present two plans as the only way
in which such unification could be ef-
fected.
All of the members Of the commission
with the single exception Of Comnis-
s!oner McChord join in presenting these
two plans without expressing prefer
ence for either.
In what 10 virtually a dissenting
opinion Mr.. McChord after taking the
railroad war board and other commits
sions Of the railroads themselves to task
comes out sauarely for Government
control at once as the only solution of
though he too insists that the carrier
should be assured a fair return.
While the Interstate Commerce Com
mission has by its action to-day passed
up the pressing problem Of the rail-
roads TO Congress. Congress proposes to
pass II along to the President. With all
sorts OF conflicting opinions evident
among the members and the labor cloud
lansing ominously not far away 1t will
DO for the President to determine which
OF these two plans shall be executed.
English Plan Well Liked.
Railroad officiaIs believe that II the
English plan were followed, and they
think the commission had this In mind.
'he holders Of railroad securities would
not suffer At all under the plan Of Gov
eminent control. This plan would be to
Guarantee tho earnings either on the
basis OF the year previous to the war or
ne average Of the three pre-war years
IN other. words. to guarantee. what was
iet after all expenses and taxee had
heen paid. out of which Government
guarantee tho railroads should pay in
'erest charge and dividends and make
"nat improvements they could.
senator Ne~lands, chairman Of tho
!ont commission. Is inclined to favor
me plan Of allowing the railroads to
'un themselves and suspending the
anti-pooling laws. He II In favor Of
.he largest measures of Government
a'd In the forms OF loans and declared
lnat the Government must act de
eslvely in this matter at once"
Representative Sims. who u slated to
mead the Interstate Commerce Commit
zee In the House. expressed himself a.
being in favor Of the Government op-
Grafton plan. although declaring that
lowed.
Representative EAch (wis) said: "Tt
seems TO me that II the suggestions
OF the I. c. G. for setting aside certain
provisions of tho antitrust laws and
Inc anti-pooling laws are compiled with
and financial aid given the roads by
the Federal Government the railroads
wiz be able fully to meet the trans
portation demands"