Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-12-06
OWNERS CANNOT MAKE GOOD
Competition Causes Too Much
Wastage; Implications MI st
Be Eliminated.
NEW CAPITAL IS ESSENTIAL
Raise in Rates Not Considered
Capable of Attracting Big
New Investments.

WASHINGTON. Dec. S. Imme-
diate action to effect national unfit
cation of the railroads, either by gov
ernment operation or by suspension
Tor the war OF antitrust and anti
pooling laws, federal loan and regu-
lation OF security issues to permit
more effective voluntary cooperation
was recommended today my the In
terstate commerce commission in a
special report to congress-
Neither plan was specifically In
dorsed, but an implication that the
majority believed the railroads might
successfully work out their own unfit
cation prompted Commissioner Nc
Chord to submit separate report em-
phatically urging government control
ana saying the strong arm of gov
ernment authority Is essential II the
transportation situation Is to be radi-
cally improved" Any voluntary pool
ing plan would fall to meet war exi-
gencies. he declared. because Of the
Unavoidable Influence OF selfishncss
among roads.
/ Competition HurtfuI.
There was no disagreement as to
the proposition that competition
among railroads must be diminished.
II not altogether eliminated, to pre-
portatlon facilities under the wars
strain.
The railroads. own proposed solu-
tion for the difficulties--an Increase
In rates In order to attract capital
,@sas( characterized as entirely inade-
quste by the commission. Even with
more funds, the report said. the short
age OF equipment could not be reme-
died materially because OF the ina
bility of Industries to manufacture Il.
Doubt also was expressed whether
sufficient capital would be attracted
In view Of the fiotation of such enor-
nous quantities Of government war
securities
These considerations led the
commission TO what Il considered
an equitable conclusion, that q
high state of efficiency could be
maintained for the railroads only
by thOrO cooperation, elimination
OF duplication of routes and other
elements OF expenses and energy,
and elimination OF the economic
waste which comes from competi-
tiOn. This would mean, 1t was
pointed out, complete recon-
structiOn Of the policies under
which railroads have been de-
velopcd.
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 ownership.
The only hint OF the commissions
attitude toward the railroads pend
ing application for Is per cent higher
rates was given In an assertion that
the roads are entitled to demand Just
and reasonable rates sufficient to
yield fair returns and the comment
that altho railway earnings in the
past year have broken all records, the
purchasing power of the earnings Is
greatly decreased.
Pooling Only Halfway Measures.
Steps taken by the railroad war
board two weeks ago to pool cars,
operate roads sowhewhat as a unit
by loaning facilities of one to another,
were recognized by Commissioner Nc
Chord in his supplementary report as
aluable, but he maintained they were
only halfway measures. He said tho
railroads now are taking orders from
too many government agencies-the
Interstate commerce commission, tho
war Industries boards. priority director
and war and navy departments, tho
shipping board and the fuel and fool
administrations. AS a result OF tho
conflict Of orders and priority. he said.
railroad operation Is approaching a
chaotic condition"
II President Wilson does not elect
to take over and operate the railroads
Commissioners McChord declared, ths
next best plan would be to enact legis-
lation to centralize federal authority
over railroads in a single agency.