The Birmingham age-herald., 1917-12-06
Drastic Recommendations Made in Special Report
 to Congress
SUGGESTS METHODS
 TO RELIEVE THE . TRAFFIC CONGESTION
Government Should Take Over Lines or the Anti pool Laws Must Be
 Repealed

w doHlIlS $ IOli, bCSOlAbCA c' Immediate action to effect na- tional unification of the rail roads, either by government operation or by suspension for the war of antitrust and anti pooling laws, a federal loan and regulation of security is- sue to permit more effective voluntary cooperation was recommended today by the interstate commerce commits sion in a special report to Con- gress.
 Neither plan was specifically in dorsed but an implication that the ma jority believed the railroads might sue cessfully work out their own unifica- tion, prompted Commissioner Nc Chord to submit separate report em- phatically urging government control and saying the strong army of gov ernment authority is essential if the transportation situation is to be radi- cally improved"
 Any voluntary pooling plan would fail to meet war exigencies, he de- clarA, because of the unavoidable in- fluence of selfishness among roads.
 There was no disagreement as to the proposition that competition among railroads must be diminished, if not altogether eliminated to prevent a se ricus breakdown of transportation fla cilities under the wars strain
 ROADS PLAN INADEQUATE
 The railroads own proposed solution for the difficulties, 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 equipment could not be remedied ma terially because of the inability of in- dustries to manufacture it. Doubt also was expressed whether sufficient cap ital would be attracted in view of the flotation of such enormous quantities of government war securities.
 COMMISSIONS CONCLUSION
 These alterations led the com- mission to what it considered an in- evitable conclusion that high state of efficiency could be maintained for At kI. operation, elimination of duplication of routes and other clements of expense and energy and elimination 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 operation under the direction of the President be adopted, said the com mission, suitable guaranty of an ade- quate annual return should be given, with provision by which the roads could reimburse the government for improvements after the properties are returned to private owners.
 HIN Il OF Al lllO ODL
 The only hint of the commissions attitude toward the railroads pending application for 15 per cent higher rates was given in an assertion that tho roads are entitled to demand just and reasonable rates sufficient to yield though railway earnings in the past year have broken all records, the pur- chasing power of the earnings is greatly decreased.
 Steps taken by the railroad war board two weeks ago to pool cars, ope1 : ate roads somewhat as unit by loan ing facilities of one to another were recognized by Commissioner McChord in his supplementary ieport as val uable. but he n lnsasned they were only halfway mvs ss,ifas. He said the railroads now arc taKlng orders from too many government agencies, the interstate commarcc coxnEnission, the war industries boards priority di- rector, and war and nAsy Experiments, the shipping bosrd and tho fuel and food administrators AS result of the conflict of oaasrs ana priority, ne SdIu, IdllTOdO OI rEAAf3}t1 tH app odSh- . ing chaotic coMdttion.
 GENERALIZATION NEG ESSARY
 If President Wilsot does lot elect to take over and opetale the railroads, Com { missioner McChofk1 des:lm ned the next best plan would be " anacf lsg islation to centralize federal nukkursfysHver railroads in single agency.
 The commissions reiort the first spe- cial report in years came as a surprise to Congress, but it met an immediate te response in both the Saase and House Senator Newlanda fhHsan,aH of the spe- cial congressional r&ilroAd snvestigatine commission and os the senats interstate commerce commitisa afranxH<1 a confer. ence with President Wissoa fer next Mon
 tcoatsnued '. Tags Two,