The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-12-09
3 CENT MILEAGE.
FOR PASSENGER.
FARE IS URGED
Legalizing of Pooling Also
Suggested to Solve Rail-
road Problem.
CABINET WIDELY SPLIT
Additional Flat Charge on
Every Ton of Freight Also
Advised.
Special Despoteh 10 TIE Sun.

jority OF President Wilson's Cabinet are
understood to favor strongly Govern
ment operation of the railroads during
the war. an equally determined oppos-
tion to this plan Is known to exist among
the other members. 1t Is being urged
upon the President by these advisers
that the proper solution Of the railroad
problem lies in legalixing the pooling Of
! equipment and facilities with assurance
| OF greater returns for the railroads than
they are making under present condi-
tions.
Coupled with this suggestion a plan
for the solution Of the real trouble
which has been encountered-the Ques-
tion Of money-has been offered This
,passenger rates. probably three cents
mile. and permitting an additional nat
charge on every ton Of freight hauled.
| Careful consideration is being given
this plan. as 1t would be applicable to
the situation regardless Of what action
the President finally determines upon.
Republicans and Democrats alike are
sceptical Of the chances Of getting
authorization from Congress for . large
loan to the railroads, and the susges-
/ ton for increased passenger and freight
rates thus far Is the only other solution
offered for the problem OF railroad
financing during the war.
Cabinet Members View.
A member Of the Cabinet. who is one
| Of the advocates OF repeating the anti
trust and anti-pooling plan. said to-day
that II was recognised by the Admins
tration that the railroads were unable
to obtain money to invest in improve
ments and rolling stock and that gums
! for these purposes must be obtained to
carry the railroads through the war
crisis.
Government operation would put the
burden on tho Government Just as COM
pletely as would q loan from the Gov
ernment. as the money must be secured
IL the transportation systems OF the ma
tion are to be kept sufficiently efficient
to handle the great burden Of traffic
which the war has thrust upon them.
This Cabinet member 10 urging that
fiat arbitrary amount be added 70 the
charge for carrying each ton Of freight
and that the PASSENGER 'Arff al.9 sss
raised. ~, - II, f,, .N VI "
tion Of such a plan was emphasized to-
day by a report from the Interstate
Commerce Commission showing that the
earnings Of American railroads con.
tinued to decline during October while
operating expenses were many millions
more than for the same month in the
previous year. The net revenues OF the
Eastern roads and the Western roads
were several millions less than in Octo-
ber 1915.
Railroad Leader. Passled.
Railroad executives are at sea as to
the plan which will be adopted. They
feel that Government operation during
the present war will not be as effective
as would private operation under the
pooling plan advanced with sufficient
income to provide for funds for the
proper improvements and increases OF
rolling stock.
Since 1911 the amount which the
railroads have been able SO to invest has
shrunk every year with the exception
Of 1914, when slightly more than the
utilized. In 1911 about $s0S.o00.oo
was invested in the railroads for i'm.
provements. the purchase Of new rollins
stock and the like. This has fallen until
last year only about $27S.000.000 could
! be used for this purpose on account OF
. the decreased net revenues Of the rail-
roads.
The feeling is growing here among
officials OF the Administration who are
. expected to have large influence in de-
termining the course the President
finally decides upon. that Government
control would lessen the efficiency OF
the roads which would not be impaired
by adoption of the pooling plan.
One Of the strongest arguments being
used by officials who favor the Govern
ment operation OF the roads during the
war emergency is the fact that 1t is
conceded that the President already is
without additional legislation, whereas
the repeal Of several sections Of anti
trust and anti-pooling laws would be
necessary to put the plan for pooling
the railroads facilities into effect and
permit them to continue the operation
Of their lines.
: No Partisan Cleavage.
. The difference OF opinion in Congress
. regarding the two plans suggested for
war time operation of the roads cannot
be figured on party lines. Senator New
lands chairman of the Senate Interstate
Commerce Committee and Democrat. is
opposed TO Government control, while
the ranking Republican member Of that
committee. Senator Cummins, has de-
ciared in favor Of Government ownership
J during the war.
On the other hand. Representative
: Sims, chairman of the House Interstate
Commerce Committee. favors Govern
: ment control of the roads. although he
will seek the repeal or the laws standing
in the way Of legalizing the proposed
pooling plan II the President 30 desires
The uncertainty In the minds Of rail.
road executives Of the course to be pur.
sued by the Administration resulted to-
day In indefinite postponement Of hear
inEs before the Interstate Commerce
: Commission on the application OF the
Western carriers for freight rate In.
, creases.
In the letter to the commission asking
postponement OF the hearing II was ex-
planned that one OF the considerations
| which led to asking postponcment was
the fact that the present situation touch
Ing the railroads 10 expected to be cleared
up early In 1915; also that ngureS will
then be available TOR the entire year
1917 which will show the need OF greater
! revenue for ths Western carriers BY dis
closing the extent to which 1t has been
necessary to defer proper maintenance
Of the roads and equipment.
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