New-York tribune., 1918-12-06
Merger of Railroads Under
Modified u. S. Control Urged
Interstate Commerce Commission Opposes Re
turn to Old System Of Competition, but Is Not
Ready to Suggest Leg islation for Future Policy

WASHINGTON, Dec. 5.-Rcgardless
private management or remain in the
hands of the government, radical
changes should be made in their meth
ods and theories of operation to pro-
vide partial merger under some sort
of government regulation, the Inter
state Commerce Commission says in its
annual report, made public to- day.
The commission believes the time is
not ripe to recommend concrete pro-
rosals for legislation relating to tho
future policy toward railroads. but says
whatever be the nations decision there
should be provision for complete uni
fcation of the railways in war time,
partial merger in ordinary times, linn
itation of railway construction to pub
lie necessity and systematic encourage
mcnt of the development of inland
waterways and their coordination with
rail carriers.
In other words, the commission is op-
posed to restoration of the old condi-
tons of individual competition, in
which pooling of traffic was forbidden
by law, and to the building of new
lines without proof to the government
that they are economically necessary.
If it is finally decided to restore rail-
roads to private management, says the
comm ssion, there should be legisl ion
to permit their cooperation, cmancipa-
ton of railway operation from financial
dictaton, government regulation OF
security issues clearing away of the
existing twilight zone between the au-
thority of state and Federal authorities
in railroad supervision; efficient use
Of equipment and common use of ter
mlnals.
Question of Public Ownership
On the other hand, if the policy OF
government ownership should be
adopted, the principal questions to be
considered are: The price to be pal
for the roads; means of preventing the
railroads from being made sources o
revenue to the government, and also tC
maintain them as self-supporting
measures to define carefully the re
sponsibility of the railway administra
ton to Congress and other Federal ant
state authorities, guarantees agalns'
intrusion of partisan politics into rail
way management and creation of
tribunal for settlement Of controversial e.
over railroad matters.
Some solt of government regulation
is suggested by the commission in con
nection with each of the five alterna
tives of future policy which may be Sc
forth by different interests in the nea
future. These alternatives are: Con
tinuation Of the present system of gov
eminent control with private owner
ship, public ownership with private op
Grafton, private operation with govern
ment regulation and guarantees, com
plete private control and ownership
and complete public ownership and op
Grafton.
The report deals at length with th
, upheaval of railroad relations cause
by the war and the governments as
sumption of operation and the rela
tions of the Interstate Commerce Com
y mission to Director General Meade
and the railroad administrations. Th
> commission has coopcrated fully wit
The government management, says tn
. report. but the commission still retain
l it's authority to review rates initiate
by the Director General.
Railroad Valuation Work
t Railroad valuation work Of the con
t mission, which will become of gre'
y Importance in case of government pu
q chase, is proceeding with little inte
s ference on account of the war. Safet
V work has been assumed partly by tt
T., railroad administration, but education
work is being continued throughout II