The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1918-12-05
COMMISSION
REPORT URGES
PART MERGER
OF RAILROADS
Radical Changes Needed in
Control Says Report Of In
terstate Commerce Body
U. S. Must Regulate Trans
portatlon.
OPPOSE OLD CONDITION
(By Associated Press)

(By Associated Press)
WASHINGTON, Dec 5.-Regardless
of whether railroads finally 60 back to
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 today.
The Commission believes the time is
not ripe to recommend concrete pro-
posals for legislation relating to th.,
future policy toward railroads, hut
says whatever be the nations deci-
sion, there should be provision for
complete unification of the railways in
war time, partial merger in ordinary
times, limitation of railway construc-
tion to public necessity, and systemat-
ic encouragement of the development
of inland waterways, and their coordia-
alton with rail carriers.
In other words, the Commission is
opposed to restoration of the old con-
ditions 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
railroads to private management, say,
the Commission, there shodld be legis-
lation to 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
and efficient use of equipment and
common use of terminals.
On the other hand. if 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 lfsupport-
ing; measures to define carefully the
responsibility of the railway admins
tration toCongress and other federal
and state authorities; guarantees
against intrusion of partisan politics
into railway management, and creation
of tribunal to settlement of contro-
versies over railroad matters.
Government Regulation.
Some sort of government regulation
is suggested by the Commission in
connection with each of the five altern-
atives of future policy which NAV -
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
ernment regulations and guarantees.
complete private control and owner
ship and complete public ownership
and operation.
The report deals at length with the
by the war and the governments as
sumption of operation, and the rela-
tions of the Interstate Commerce Com
mission to Director General McAdoo
and the railroad administration. me
Commission has cooperated fully with
the government management, says the
report, but the Commission still re-
tains 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 pur-
chase, is proceeding with little inter
ference on account of the war Safety
work has been assumed partly by the
railroad adminisfrati ion. but educa-
tional work is being continued through
out the country The Commission in
the last year has made great strides
in seeking to promote uniform rate
classifications, and has undertaken a
number of other investigations of
rates and practices.
Adequate Transportation.
The report. including the stateme-t
concerning future policies toward rail-
reads. Is signed by all the commits
siOners. except George w. Anderson.
who recently resigned to accept an
other federal appointment. Others
are: Winthrop NJ Daniels, chairman:
Edgar E. Clark. James S. Harlan.
Charles c. McChord BaIthaser H. Mey-
er. Henry c. Hall. Clyde B. Aitchison
and Robert w. Wooley.
THE conditions. without precedent
or parallel, which the war has pro-
diced. now press upon the congress
matters of the grayest national and in
ternational concern.
While we do not deem the present
conditions and moment opportune in
which to recommend concrete propo-
sails for legislation, We may indicate
certain lines of inquiry which must be
pursued in order to reach sound con.
Clusions.
Whatever line of policy Is deter
rlined upon. the fundamental aim or
purpose should be to secure transpor-
tation systems that will be adequate
for the nations needs even in time of
national stress or peril and that will
furnish to the public safe. adequate
and efficient transportation at the
lowest cost consistent with that SER
vice. To his end there should be
provision for % the prompt merger
without friction OF all the carriers
lines, facilities, and organizations in-
to continental and unified system in
time Of stress or emergency; t2b mer-
ger within proper limits OF the car
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