The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-27
OPPOSE
OWNERSHIP OF
ROADS BY U. S.
Majority of Congressman
Favor Broadening
Regulations.
CONSERVATIVES SCARCE
Committee to Begin Framing
Policies Immediately AT
ter January 2.
CONSERVATIVES SCARCE

| WASHINGTON, Dec. 26.-With the re-
sumption OF regular business In Con-
gress January 2 the first move will
be made toward solving the railroad
problem President Wilson In his ad-
dress December 2 said II was for
| Congress TO decide the permanent re-
lations between the railroads, the
Government and the holders OF rail-
| road securities.
The suggestion frequently heard
hero of late that there is serious
movement in Capitol circles looking
toward actual Government ownership
can now be put down as untenable.
The closest sort Of an unofficial sur
vey of the two houses reveals only a
small element holding this view.
What actually exists is a large ma
jority in both houses favorable to
broadening to considerable degree
the Government powers of regulation,
| as administered more and more in
late years by the Interstate Commerce
Commission. The actual strength of
this majority in which party lines are
scarcely to be distinguished is as
suredly two-thlrds OF Congress In
the House the percentage may run
considerably higher.
There exists in both houses a group
of supporters Of the programme OF
complete Government ownership, but
II does not comprise more than 10
or at most 12 per cent. OF the mem
bership. In both houses there exists
a group OF ultra -conservat tives who
favor the return OF the lines TO pri-
vate ownership and control with al
possible celebrity This group is the
least to be considered for It is toe
small TO figure in any compromise
any combination which will be- eff
fective.
+ Esch States Problems.
The two committees of Congress art
ready now TO proceed with their study
to lay the groundwork of the railroad
law which the next Congress mus
frame. Representative Esch (Wis.)
who will be chairman OF the House
Committee on Interstate Commerce
which will frame the bill in the Sixty.
sixth Congress. said to-day:
1T Is necessary that the formula
ton OF the law should be started a
once. 1t shall be the permanent guar
aDtee to the public of efficient servic;
In transportation, to the holders o,
honest railroad securities of the integ
rity of their investments and to the
railroads of efficient management anC
the elimination Of unrestricted com
petition which may destroy both eff
cheney and integrity. The problem i:
vast and intricate and will requir,
time. But the twenty-one months pro
vided under the resolution by which
the Railroad Administration was le
galized as necessary to elapse befor,
the delivery of the lines back to th'
owners is ample.
Government acquisition of the line!
would involve an outlay of $l6,000,000,
900 to $4,000, ,0OO, 900. 1t is highly
questionable II the American taXpaycI
is prepared TO accept this new burdeI
during this period OF paying off tn,
stupendous costs Of the war. This l.
aside from any views which may b.
entertained as to the righteousness o
the general scheme.
WOuId Control stock Issues.
There are several lines of develop
ment which must be taken into con
sidera ton. There must be new powe
| in the hands Of the Interstate Com
' merce Commission in the exercise o
which ia can forbid issues Of stock
, and bonds by existing lines Ever
: need for new capital should he sub
mitted to the commission. The is
, suance OF short term notes. designe,
to permit borrowing of 'emergenc,
| funds, should not be included, but thi
freedom of action ought to be re
) stricted TO a single year
"The vicious circle which has so Of
ten disclosed itself under which i'm
mediately following permissive in
crease of rates by the Interstate Com
! merce Commission there followed
T demand on the part OF the railroad EN-
ployees for wage increases must b.
eliminated. The solution lies in givin;
TO the commission authority waG
; schedules.
THE third problem is revision OF TIL
} Interpreting laws so as TO include SOM
, provision for pooling within limit
fixed by the commission which woul'
: give the shipping public the benefit
, and deny the railways the power L
misuse their powers"
Outsider for McAdOO Post.
The nomination OF n Director
p eral Of Railroads to succeed william
! G.. McAdoo is expected from Londol
by c"'in in a day pr two. NJ. McAdo
Ior'iuucd or FourtL pcge