Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-12-06
URGES UNIFIED
"a; .;;ss|;a;",LROAO CONTROL
Competition Must Be Eliminated
Service Commission Reports
to Congress.
NECESSARY WAR MEASURE
Government Operation or Suspension of
Antitrust and Anti-Pooling Laws
Are Recommended.

Washington, Dec. 5-1mmediate action
to effect national unification of the rail-
roads. either by government operation or
by suspension for the war Of antitrust
and anti-pooling laws. federal loan and
regulation Of security issues to permit
more effective voluntary cooperation
was recommended to-day by the inter-
state commerce commission in a special
report to Congress-.
Neither plan was specifically endorsed,
but an Implication that the majority be-
Tieved the railroads might successfully
work out their own unification. promtped
Commissioner McChord to submit a sepa-
rate report emphatically urging govern
ment control and saying:
''The strong arm Of government author
ity Is essential II the transportation situa-
ton is to be radically improved" Any
voluntary pooling plan would fail to meet
war exigencies. he declared because of the
unavoidable influence Of selfishness among
roads.
There was no disagreement as to the
proposition that competition among rail-
roads must be diminished, II not Altogether
eliminated, to prevent a serious break
down Of transportation facilities under the
wars strain.
the diniculties-an increase in rates in
order to attract capital-was charac-
terized as entirely inadequate by the COM
mission. Even with more funds, the re-
port said, the shortage Of equipment could
not be remedied materially because Of the
inability of industries to manufacture II.
Doubt also was expressed whether suf-
f1cient capital would be attracted in view
OF the fiotation of such enormous quanti-
ties Of government war securities.
These considerations led the commissiop
to what 1t considered an inevitable con-
clusion that a high state of efficiency
could be maintained for the railroads only
by thorough cooperation, elimination OF
duplication of routes and other elements
OF expense and energy, and elimination Of
the economic waste which comes from
competition. This would mean. 1t was
pointed out. a complete reconstruction of
the policies under which railroads have
been developed.
II the alternative Of government
operation under the decision OF the
President be adopted. snid tlse eommis-
sion. suitable guaranty of an adequate
annual return should be- given with
provision by which the roads could re-
imburse the government for improve :
ments. after the properties are return
ed to private owners.
The only hint Of the commission's .
attitude toward the railroads pending
application for fifteen per cent. higher
rates was given in an assertion that
tho roads are entitled to demand Just
and reasonable rates sufficient to
yield fair returns, and the comment
that although railway earnings in the
past year have broken all records, the
purchasing power of the earnings is
greatly decreased.
Steps taken by the railroad war
board two weeks ago to pool cars,
operate roads somewhat as a unit by
loaning facilities of one to another
were recognized by Commissioner Nc
Chord in his supplementary report as
valuable. but he maintained they were
only half way measures. He said the
railroads now are taking orders from
too many government agencies-the
interstate commerce commission, the
war industries boards priority direc-
tor. and war and navy departments the
shipping board. and the fuel and food
administrations. AS result Of the
conflict of orders and priority. he said
railroad operation Is approaching a
chaotic condition"
take over and operate the railroads. Com
missioner McChord declared. the next best
plan would be to enact legislation to CEN
tralize federal authority over railroads in
a single agency.
The commissions report. the first spe-
cial report in years. came as a surprise
to Congress. but It met an immediate
response in both the Senate and House.
Senator Newlands. chairman OF the spe-
cial congressional railroad investigating
commission. and Of the Senate interstate
commerce committee arranged a confer
ence with President Wilson for next Mon
day to receive executive recommendations
Decisive action by the government imme.
diately is necessary. Senator Newlands
said. to insure efficient operation Of the
railroads and provide sufficient capital.
Chairman Adamson, Of the House inter-
state commerce committee. expressed op-
position to the suggestion Of repeating the
anti-pooling provision of the Sherman act.
and advocated loaning money only to
weak roads. Representative Sims, who will
succeed Representative Adamson as chair
man Of the committee, advocated govern
ment operation. Representative Gillett,
acting republican leader. said he favored
almost any plan short Of government con.