Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-12-08
F1NANCE-LOCAL AND OTHERWISE
BY I. A. FLEMING.

John J. Mitchell, president OF the
Illinois Trust and Savings Bank of
Chicago, one of the largest institu-
tions in the west, seems to have been
the father of the idea of treating the
railroads after the plan adopted Tor
our currepcy system.
He suggested national i1corpora-
tion, with a central controlling body
like the federal reserve board, and
then the establishment of seven
regional districts, with centers the
same as the regionals of the federal
reserve system. Such system, IL
adopted, would contemplate the OPP
Grafton of all the railroads OF the
country, as they are run today, Will
out competition and with the re-
moval of all other control, just as
many bankers hold today that there
should be no other control over ma
tional banks than the Federal Re-
serve Board.
ANY such action would have to be
sufficiently drastic to settle once
again the question of states rights
and would probably eliminate the
Interstate Commerce Commission
Putting on all speed for the war
business has demonstrated that the
best results are obtained by unity oil
control, through removing restrictions
as to pooling, which might sugses'
that the Sherman antitrust law IL
antiuuated. The director OF railroads
threw off all checks, appeallne
neither to the shareholders, state
commissions, Interstate Commerce
Commission or other control LOT the
things he did.
No such license would be granted to
any corporation, but 1t might pe
granted under a code, supervised ano
administered by a central railroad
board.
To turn back all railroads to cor
porate ownership now would oe TO ~
vite disaster to many weak lines, VIZ
a distinct lessening of capabilities Ioi
service, while even the stronses'
roads might find 1T dlfilcu1o: .u e" the
laws now on the books, to make tne
needed expenditures for lmproNe
ment and upkeep, to say nothing COL
corning needed extensions.
Mr.. Mitchell, in discussing this I'M
portant problem, had this to say;
From the thought 1 have gfven tne
subject I am convinced that the way
to handle the railroad problem Will
be through an organization similar 70
the federal reserve bank system 10
formulate recommendations to Con-
gress, there should be appointed
commission to go over. thoroughly
the relations between the owners OIL
the properties, the shippers and the
wage earners, the research to be
made with a view of establishing an
organization such as now controls the
banking system Of the nation
There should be board OF con-
troll established in Washington. az
by Congress. consisting of the fore
most men in the country. My idea
ia of a board of seven. with three
railroad men as minority or .ioui
railroad men as a majority. Lei
there be appointed regional directors
seven in number.
Let the properties remain undel
present ownership. for operation un'
der the direction of the regional dl'
rectors, the latter subject to the con-
troll of the board at Washington.
ct consider the disposition of the
railroads to be as much, if not more
Importance to the country as the
banking system. A reversion to the
conditions obtaining before the wal
would leave the public. investors 3nt
wage earners, as well as the rail-
roads, in an unthinkable condition
AS I see it, no power but the gov
eminent is able to handle the sit
uation which has developed. 1t alone
can make rates and wages upon e
| basis which will be satisfactory.
ITO turn the railroads back to cor
porate ownership would be to leave
them legally, in the matter of rates
| just where they were before the war
| with increased cost of operation
Before the government took over tn,
properties, about a year ago, Their
appeared to be only bankruptc,
| ahead, condition which would have
| upset the country economically"