The sun., 1918-12-06
c. c. ASKS CHANGES
IN RAIL OPERATIONS
Partial Mergers, Limited Con-
structlon and Waterway I'm
provcments Recommended.
TO MEET CONTINGENCIES
Annual Report Makes suggcs.
tons Covering Every Pos
sible Readjustmcnt.

WASHINGTON, Dec. 5.-Regardless OF
whether railroads finally go back to
rrivate management. radical changes
should be made In their methods and
theories of operation to provide par
,ial merger under some sort OF Gov
eminent regulation, the Interstate
Commerce Commission says in its an
nual report, made public toby.
The commission believes the time is
not ripe to recommend concrete pro-
posals for legislation relating to the
future policy toward railroads, but
saws whatever be the natio7's. deci-
sion. there should be provision for
complete unification of the railways in
war time, partial merger in ordinary
times. limitation of railway construc-
ton 10 public necessity and system
attic encouragement Of the development
" inland waterways and their CO.
ordination with rail carriers.
Recommends Legislation.
nit is finally decided to restore rail-
roads to private management, says
the commission. there should be legis-
lation 70 permit their cooperation,
emancipation OF railway operation
from financial dictation, Government
regulation OF security issues; clearing
away Of the existing twilight zone be-
tween the authority of State and Fed
eral authorities in railroad supervision
efficient use of equipment and common
use Of terminals.
On the other hand, II the policy Of
Government ownership should be
adopted, the principal questions to be
considered are: The price to be paid
for the roads, means OF preventing the
railroads from being made sources of
revenue to the Government and also to
maintain them as self supporting;
measures to define carefully the re-
sponsibility of the railway administra-
ton to Congress and other Federal and
State authorities; guarantees against
intrusion OF partisan politics into rail-
way Management and creation OF n
tribunal to settle controversies over
railroad matters.
Some sort of Government regulation
is suggested by the commission in
connection with each of the five alter
natives of future policy which may be
set forth by different interests in the
near future. These alternatives are:
Continuation of the present system OF
Government control with private own
ership, public ownership with private
operation, private operation with Gov
eminent regulation and guarantees.
complete private control and owner
ship and complete public ownership
and operation.
Deals with War Time Changes.
The report deals at length with the
upheaval Of railroad relations caused
by the war and tho Governments as
sumption of operation, and the rela-
lions OF the Interstate Commerce
Commission TO Director General Nc
Adoo and the Railroad Administra-
lion. The commission has cooperated
fully with the Government manage
mcnt, says the report, but the COM
mission still retains its authority TO
review rates initiated by the Director
General.
Railroad valuation work OF the com
mission, which will become of great
Importance in case of Government
purchase, is proceeding. Safety work
aaS been assumed partly by the Rail
road Administration, but educational
work is being continued throughout
The country. The commission in the
iast year has made great strides in
seeking TO promote uniform rate cIas-
sifcations. and has undertaken a n1m-
ber OF other investigations OF rates
and practices.
The report, including the statement
concerning future policies toward rail.
roads, is signed by all the com
Sloners except George w. Anderson
who recently resigned TO accept an.
other Federal appointment Others are
winthrop NJ. Daniels, chairman: Ed
gar L. Clark. James S. Harlan, Charlie,
~, McChord, Balthasar II. Meyer
Henry c. Hall, Clyde b. Aitchison anC
ltGi,,rf