Evening star., 1917-11-18
AID FOR RAILROADS
CONGRESS PROBLEM.
Subject Likely to Receive
Much Consideration at the
Coming Session.
RIGHT TO POOL PROPOSED

Consideration of legislation affecting
the railroads is to bean important fea-
ture of the work OF Congress at the
from tomorrow. Differing from the leg
islation of recent years. which has been
regulatory and restrictive, program
and heneAcial promise to the carrIsrs.
Ihst i will be opposed goes without
s1ynS. sf19-gvSfEnfSsSn el6-
msnt taSpou1f nieh Is .tag'in the
railroads. Arsts slaaf and All the time
There is another which Is suspicious
Of anything savorings Of beneft to the
railroads. The combined strength is
formidable when exerted. as the rail-
roads have found to their sorrow more
than once. There is hope, however, by
convinced of the necessity of some help
being given the roads for the sake of
the country and business generally.
Proposal for Pooling.
There will be renewal, it is said, of
the proposition. to permit the railroads
to pool and combine under govern
mental restriction and regulation. This
is not a new suggestion and will not
shock anybody in Congress. Ever since
the enactment Of the Elkins anti-re-
bate law the roads have sought a pal
ltative in the form Of what they called
reasonable pooling arrangements. Bills
have been introduced in previous Con-
crosses providing for it and have re-
ceived considerable support.
Testifying before the Interstate Com
merce Commission last Friday. Frank A.
Vanderlip. president of the National City
Bank. said that some pooling arrange
ment must be accorded. He spoke out of
the experience Of the banker who finances
great trunk lines and is himself a rail-
road man In way. He declared that the
requested advance in rates will not
solve all the problems of the railroads:
the solution must reach deeper and he
limited at strong federal control
For Construction Control.
1t is not thought that government own
ership Of railroads will be seriously con-
sidered at this session. There is possi-
bility. however, it Is believed in in
formed circles, that steps in the direc-
ton of federal control to an extent
greater than now exercised will take
form IL not effect. Such control would
not be limited to restriction, but would
extend to constructive and helpful ends
Another proposition likely to come be-
fore Congress at this session is that the
government shall lend the roads, out Of
urgently needed development work This
loan would be at the same rate to the
borrowers that the government paws
Railroad extension in this country is. as
every one knows, needed on a large
scale. The roads complain that whiie
they are losing money. passing dividends
and threatening default on the interest
on their bonds. they cannot get money
for development except at exorbitant in
terest rates. One eastern trunk line re-
Gently borrowed money at per cent he.
cause 1t had to have it to keep the road
IN shape to move the governments war
business. 1t did not use cent for de-
ve!opment which might be classed as
ANY such plan Of relief must be
strictly differentiated. 1t is said, from
the requested aid to be received from
an increase In freight rates. No road
dends which must be met out Of the
earnings Government lending asafat
ance would go entirely to property and
plant development.
creases already granted still fall mil
lions short OF their increased expenses
In labor and material; 50 far short In
It Is claimed. .as to spell passing
Commission now has under advisement
and Investigation through public
hearings requests for what tho roads
deem ADEQUATE increases In rates.
tional preparedness has just issued m an
for further Congress- Ieris.
!atfon for the railroads SunmsSis.
Ing Its recommendations. they are
found to be as follows:
First. Creation Of a national trans.
portation administrator. with eovern-
mont direction Of expenditures and
supervision Of construction necessary
. g n..s fili existing l' gaps and eliminate
government ownership Of the roads.
Second. Purchases by the govern
nent, for use as needed on any railroad. |
IF rolling stock standardized to fnsure
quick and economical repair.
Third. Government loans to connect |
dis5ointed rail and water Transports |
lion systems under government super
vision; also increased freight rates, |
TO be authorised at onos by the Inter. |
ltAtA- 0A0Aelee CemRfrRieA,