Arizona republican., 1917-12-06
UNITE
 R0ADSIN WARTIME
GRepubIican A. p. Leased Wirel

WASHINGTON, Dec. 5.-Immediate action to effect national unificatiOn of the railroads, either by government operation or by suspension for the war of antitrust and anti-pooling laws, a federal loan and regulation of security issues to permit more effective volun- tary cooperation, was recommended today by the interstate commerce com mission in a special report to con gress.
 Neither plan was specifically en- dorsed, but an implication that the majority believed the railroads might successfully work out their own unifi- cation, prompted Commissioner Mc- Chord to submit a separate report em- phatically urging government control and saying "the strong arm of gov ernment authority is essential if the transportation system is to be radical ly improved" Any voluntary pooling plan would fail to mett war eXigencies, he declared, because of the unavoid- able influence of selfishness among roads.
 There was no disagreement as to the proposition that competition among the railroads must be diminished if not al- together eliminated, to prevent a seri- ous breakdown of transportation facil- ities under the wars strain.
 The railroads own proposed solu- tion for the difficultiess-an increase in rates in order to attract capital-Was characterized as entirely inadequate by the commission. Even with more funds the report said the shortage of equip ment could not be renedied materially because of the inability of industries to manufacture it. Doubt. also was expressed whether sufficient capital would be attracted in view of the Notation of such enormous quantities of government war securities.
 These considerations led the com mission to what it considered an inevit- able conclusion that a high state of efficiency could be maintained for the railroads only by thorough cO-opera- tion, elimination of duplication of routes and other elements of expense and energy and elirnination of the economic waste which comes from competition. This would mean, it was pointed out, a complete reconstruction of the policies under which railroads have been developed.
 If the alternative of government op- eration under the direction of the presi- dent be adopted, said the commission, suitable guaranty of an adequate an nual return should be given, with. pro- | NlSlOn DV WIlCn the TOdQS COulu re- l imburse the government for improve ments after the properties are returned | to private owners.
 The only hint of the commissions attitude toward the railroads pending application for fifteen per cent higher rates, was given in an assertion that the roads are entitled to demand just and reasonable rates, sufficient to yield | fair returns. and the comment that all though railway earnings in the past year have broken all records, the pur- chasing power of the earnings is great ly decreased.
 Steps taken by the railroad board two weeks ago to pool cars, operate roads somewhat as a unit by load ing facilities of one to another, were recognized by Commissioner McChord in his supplementary reports as valu- able, but he maintained they were only
 half way measures. He said the rail roads now are taking orders from too
 many government agencies-the inter.
 state commerce commission, the wa
 industries boards, priority director anC
 the war and navy departments, tn, , shipping board and the fuel and foot administrations. As q result the con flict of orders and priority, he said
 Railroad operation is approaching {
 chaotic condition"
 If President Wilson does not cleo
 to take over and operate the railroads
 Commissioner McChord declared, tn, next best plan would be to enact leg.