El Nuevo mexicano., 1917-12-06
EDE RIAL
RAILROAD
OPERATION
IS NEARER
Must Unity or Let
Uncle Sam Do It,
/. G. C. Verdict
RESOLUTION I'M
HOUSE TODAY
Commerce Commission
Favors U. S. Loan to
the Carriers
(By Leased Wire to New Mexican.


(By Leased Wire to New MexIcan.)
WASHINGTON, Dec. 5.-A joint
resolution to have the government
temporarily taken over and operate
all railroads and coal mines with .
View to ~remedying transportation and
price problems was Introduced today
by Representative SABBATH, Of Illinois.
It proposes that If the temporary con-
troll should demonstrate better con-
ditions the arrangement should be
made permanent and a commission
created to fix upon reasonable COM
pensation.
Government operation of railroads
for the duration of the war, If unfit
cation Of the transportation system
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 rail-
roads are concerned for the duration
Of the war were recommended by the
commission as an alternative.
Congress was told in a report by
the Interstate commerce commission
today that to effect the %unification Of
railroad for the war, anti
trust and ~anti-pooling laws should be
suspended. In addition the commis.
sion declared railroads should receive
a government loan and that issue of
railroad securities should be vested in
some special body. Some advance in
rates is imperative the commission
said, in the war emergency.
The alternative for such voluntary
notification of the railroads the com
mission declared would be govern
ment operation with suitable guaran-
ty of an adequate annual return as
well as for upkeep, with fair terms
upon which improvements during the
period of government operation could
be paid for by the roads upon return
of their property.
The recommendations, signed by
Chairman Hall, were accompanied by
a supplementary report by Commits
sioner McChord who said he believed
that If the president would take over
operations Of the railroads, vastly
improved transportation conditions
can be promptly secured
After reviewing the extraordinary
demands on the railroads during the
past year and the increase in labor
and material costs, the commissions
special report says:
1.-THE act to regulate commerce was
not enacted to meet such a situation.
The carriers have the right to de-
mand at our hands, and it is III 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-
lures.
MEASURED indoors, the gross reve-
nues Of the carriers during the past
and current fiscal years exceeded
any in their history. But what the
dollar will buy in labor material
and supplies is substantially less.
I'VE are sensible of the vital and
imperative need of the hour that our
railroads shall not be permitted to be-
come less efficient or less sufficient.
We realize the gravity Of a serious
breakdown OF our transportation ia
c%ilities.
1T Is un~thinkable that this break
down would be permitted If it could
be prevented. Increased charges for
carriage, IL found necessary to take
ARE Of unavoidable increases in oper-
citing expenses would not at this time
uring new capital on reasonable
terms in important sums.
I'm our opinion the situation does
not permit Of temporizing. All ener-
gies must be devoted to bringing the
wal to a successful conclusion and to
that end it is necessary that our
transportation systems be placed and
kept on a plane Of highest efficiency.
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