New-York tribune., 1918-11-26
Careful Study of Question
of Return to Private
Owners Is Urged
Desire of Security
Holders Outlined
Untermyer Wants Peonl.
to Decide Government
Ownership Issue


sylvanla lines. ">mmenting on n.
proposal of the National Associs,;.s
of Owners of Railroad Securities ..,a
the roads be returned promptly to ~;
vate management, asserted YESTERDAY
that this "is not time for precipit.,.
action" and expressed a hope that n.
change in conditions would be met;
tuted except after the most carssn,
consideration.
After pointing out that the mat.s,
was still subject to war influence,
with 100000 fighting men oversee,
Mr.. Rea said:
"The experience of the world and
that in our country convince me mo,.
than ever that the financial and uo,;,,.
cal results in every country emubat,.
cally condemn government ownership
and operation of the railroads. ThI
question is, what policy is the best fox
the future to enable the railroads n01
merely to exist, but to obtain the addi.
tional capital essential to insure ths
future progress of the country? Trans.
portation can be either the greatest
obstacle or the greatest benefit 10
progress.
Careful Study Necessary
sThe return OF the railroads to their
owners is in the discretion of ths
President, but Congress- indicated 4
period of twenty-one nc tbs following
, the ratification of the peace treaty in
order to give time for adjustments.
The most experienced minds in rail.
. roading, finance and public policy
should, therefore, he devoted to for. .
mulating a basis for our future rail-
( road policy, which can be carried out
without rupturing the business or
soclai relations OF the country.
1T Is much too optimistic view
20 imagine that we are not now sub.
Ject to war influences, with practically
two million men abroad and with none
OF the peace terms worked out and the
! problems Of reconstruction and feed.
ing and financing the foreign nations
still before US. Therefore, nothing on
this great problem of dealing with
twenty billions of railroad properly
affecting the entire country and its
ACASA6h II 1CldtAOuS, anu 6uecIiHg also
the interests of railroad owners and
railroad employees, should be under.
taken except after the most careful
consideration. Such vastly important
questions as labor, wages, taxes, ETC.,
Will Keep Open Mind
~ prefer to keep an open mind until
we have had an opportunity to care
fully weigh the situation. You are
also aware that the Federal control
contracts for taking over the railroads
have not been agreed upon, except in
/ very few instances, and that the neces
sary adjustments and financing unde
: those contracts have not yet been un
j dertaken. 1t is not a time for preeipi
! tate action or expressing opinion upo
very complex situation which shoul
not be dealt with like patchwork.
The resignation of Director Genera
i McAdoo and the launching of the cam
paign to get the railroads back int
the control of the security holders VII
own them, caused much uncerta lnty /
the stock market yesterday. Secur
ties of the best railroads declined sev
eral points, following the geners
! downward trend of all stocks.
Furthe~ light was shed on the OBJ
! jectives of the Association of Securit.
/ Holders by g. statement prepared TO
! the press by Samuel Untermyer, seniol
counsel.
/ Would Give People Choice
Mr.. Untermyer explained that the
fight was not to decide the question Of
ultimate ownership, but to get the
roads back into private hands so tna'
the people could of their own Tree
choice decide whether government op-
Grafton or private operation was W
prevail in this country. Mr.. cnter'
myer personally is an advocate Of gov
ernment ownership through compehsa-
ton, but not through conhscatlon' Tic
explained. ~,
'The immediate tasks" said MT. On
termyer, "to which the ASSOCIATION Il
about to apply itself will be:
"To put stop to the further carry
ing out of the farreaching programn
for unifving the roilroed svsf'"s
the country on which the railroad 10 y,
ministration has embarked aid "hi'
involves expenditures and creol'S, .
many hundreds of millions OF colal
belonging to the security holaeal,
which the roads do not need unoe
private ownership and for which man
of them cannot afford 10 pay
"To halt the diversion of tramc az
abandonment of roads and paris
roads incidental to the process OF W.;
fication and dismemberment, so lhs. ~
may remain possible to return -
roads as Congress intended.
Returp of Roads Pledged
"To secure their prompt return y
their owners as nearly intact a. ss,
sible and in a financial CONDITION ~ ~, :,
will not force them into bankrupssss,ts,, y. Il,
the result of expenditures made ny y
railroad administration at the eAp.uy san
of the roads and without their cUhssa; 60, 81,
AZ think it will be agreed by an 10 10
minded men, regardless OF wnssar
they are for or against governt.',,ts n
ownership, that the good faith OF i.;o, -
government is pledged to tins a aesiv'
and every day it is longer defeffeJh -,
will complicate the carrying out Oh -
promise. 49, II
"The honest advocates, as well as s, "
opponents, of eventual goVe,,,n'r.r,., ~.
ownership of public utilities VIII ss''
in insisting that if the govcrnmen.oo .or
to acquire the roads it must oe ae.s
plished by the constitutional means :,
adequate compensation to their OWL, ..;r
and not by subterfuge or indlIe's ~,
nor by strong-arm methods OF .uS oS
fiscation or quasi-confiscation "n''
cover of legal forms.
Calls Contract Unfair -,
az accepted the retainer from tns ps; ~
t;oroJ Aseoc;ation of Owners OF NJ