Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-12-27

that his decision was not due to any
| failure of the railroads to perform
their duty as well as they could under
present legal restrictions. and the real
reason for the plan of government OPP
Grafton was to permit complete unifca-
ton of all rail systems impossible
through private operation by statutes
prohibiting pooling of traffic and earn
ings.
THE committee of railroad execu-
tives," his statement said, "s have
done the utmost that it was possible
| for them to do. In mere FAIR
ness to them the full authority. of the
government must be substituted"
Although electric lines engaged in
general transportation are included in
the proclamation, street railways and
Iinterurben lines are specifically eN-
cluded, with the reservation that sim
liar action in their case may be taken
later if deemed necessary.
The Interstate Commerce Commission
and other government and state
agencies which have to do with rail-
functions under the new plan, except
that they will be subject to order of
the railroad director
Railroads still will apply to the COM
mission for changes in rates and prac-
tees. Early decision on the applica-
ton of eastern and westeM roads for
a Is per cent advance in freight rates
pending before the commission now is
expected. The commission is consid-
erfng application of the express COM
panies for a 10 per cent increase. and
as the proclamation failed to mention
express companies specifically some
doubt was felt as to whether they
were included in the order. The procla-
nation said: Every system of trans
portation and appurtenances thereof,
however. and this was generally inter-
preted as including the express COM
panies.
Although the plan of control is not
outlined in detail, it was the opinion
that the British system would be fol-
lowed closely except in the matter OF
paying for government freight In
England the government freight is
carried free, and the guaranteed earn
ings require an enormous amount OF
money from government funds. while
in the United States the government
will pay it's freight and will stand in
creases IL they are found necessary.
Higher Rates May Cover Cost.
Railroad experts estimate that the
government plan to guarantee earnings
equivalent to average net operating
income of the last three years will cost
the government about S100,000,000 next
wear which can be raised by increase
in freight rates. In addition to this
cost the recent demand of the railroad
brotherhoods for 40 per cent advance
in wages calls for answer from the
railroads on or before December. 81 and
it is expected that the railroads will
leave decision in this matter to the gov
eminent.
President Wilson planned to confer
with the railroad brotherhood chiefs
today and the heads of the four organi-
cations indicated that further details
of the scheme of government control as
far as 1t affects pending warge contro-
versies probably will be discussed.
Aided Sale of Securities.
The fact that the President will rec
ommend to Congress that railroads be
guaranteed average net incomes of the
three years ending June 80, 1917. was
the point which brought about most
favorable conditions in the sale of rail-
road securities today. For the 'aver-
age net operating income of the three
years preceding June 80. 1917" was the
highest in the history of American rail-
roads. The report of the Interstate
Commerce Commission shows the fol-
lowing: