Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-11-26
RAILWAY PROBLEMS
RATED AS UNUSUAL
Representative Sims Thinks
Permanent Legislation on
Subject Inadvisable.
NO NEED OF POOLING LAW

Representative Thetus W. Sims Of
Tennessee, a member of the joint COM
mittee of the House and Senate which
during the recess has been investigat-
ing transportation and freight rate
problems Of the railroads in the far
west, has returned to the city. MIR.
Sims interest in railway problems is
acc4ntuated by the fact that in case
Judge Adanson concludes to resign
from Congress and qualify for the
iudgeship to which he has been ap-
be the logical selection for chairman
Of the House committee on interstate
and foreign commerce.
Speaking for himself. and disclaim-
ing that he voices the opinions of any
of his colleagues on the committee,
Mr. Sims today expressed doubt
whether 1t will be advisable at the
coming session of Congress to attempt
any permanent railway legislation of
vital Importance. 1t is quite obvious.
he said. that the war has created prob
lens for the railroads to be classed as
abnormal. which will disappear after
the war. He feels that it would be
very difficult to change the laws
retention upon the statute books, to
meet these abnormal conditions.
Suggests Guaranteeing Loans.
There is one thing that can be done
and which think may be accomplish
ed at this session." said Mr.. Sims. land
that is to pass legislation by which
the government would guarantee loans
| to the railroads at a low rate of in
terest to enable them to make improve
ments imperatively needed at the mo-
ment and to expand their facilities to
| meet the unusual demands upon them.
The railroads cannot borrow money
! now except at grievously high rates of
find that on account of increased wages
! to labor and added cost of material, q
dollar does not go as far as it would
! in ordinary times.
For that very reason I would not
favor broadside expansion of railroad
capital through government aided or
any other character OF loans. But 1t is
obvious to every man that the rail-
! roads need money for new trackage.
for locomotives. cars and other equip
ment Immediately. They must have it
to enable them to handle the great
volume Of business by which they
! threaten to be overwhe elmed. l think 1t
would be quite in order to agree upon
4 d
loans to the solvent railroads at az
or 4 per cent. to run for a short time,
and thus made emergency loans
Thinks Plan Would Be Popular.
! "The railroads would doubtless be
| eager to avail themselves of the priv
ilege, and the securities. issued under
supervision of the Interstate Commerce
| Commission, with knowledge of the
general condition OF the roads, should
appeal to the financial world as a good
! investment AS understand 1t, no
railroad would of itself want to bor-
row money for any other purpose than
puttine it Immediately into the plant
to enlarge Its carrying facilities.
"I doubt very much whether any
serious attempt will be made at the
coming session in behalf of a general
pooling bill. This subject is quite ia
miIiar to men who have been in Con-
gress longer than one term. In the
| first place. and in point of fact, the
railroads are even now. to all prac-
ticaI intents and purposes. beginning
| to pool with the full sanction of the
government. The action announced in
Yesterdays papers by the railroads
war board Of pooling of freight facili-
| ties on the eastern roads Is proof.
Pooling Authority Not. Necessary.
| $50. for immediate practical purposes
Il seems that they do not need legis-
latiye sanction for pooling. As for any
general pooling authorization, as a
permanent statutory Law. livery gravely
doubt whether 1t would be possible to
get through Congress legislation
witch seemed to look to notification
Of the antitrust laws. even under gov
ernmental regulation.
.aThe freight rate increase problem is
very serious. It has many aspects. To
my mind. the main thought to be kept
befors us is not to increase freight
rates to such an extent that they
would prove depressant to business. !"