The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-25
Head Of Railway Securities
Owners Wants Legislation
to Guard All Interests.
ROADS, CREDIT AN ISSUE
Many Questions Answered and
Details Given Of Operation
a.. Of Association.

Eiihu Root and other lawyers to COM
+ gel the return OF the railroads TO
private ownership. issued statement
Yesterday. He explained the asso-
cations form OF organization and out
lined conditions II will insist that the
Government comply with in returning
the railroads. The statement follows:
TN response to many inquiries by
telegram, letter and otherwise, from
newspapers, shippers and individual
security holders in number impossible
to answer otherwise than by public
statement. It seems necessary that
such statement be made.
The railroads must be returned
under plans which shall accomplish
the following:
III. Protect alike the shipper. the
travelling public, labor and the
security owner.
"2. Provide adequate means for gov
Ornamental regulation, including super
vision of railroad security issues. The
Interstate Commerce Commission is
the authorized agency TO which this
VIII be likely entrusted. Legislation
by Congress is necessarily required
for the direction OF that commission.
IL continued by Congress as the reg
uiating body.
"s. Provide for the retention of such
methods of administration as may
have been found to be effective dur
ing Federal control-such rs joint
use of important termlnals-but which
tEcreased rather than diminished the
advantages to be secured from indi-
vidual initiative. To concentrate to
the extent of its destruction and to
limit reasonable competition essential
TO constant and continuing improve
ffaent Of service will retard business,
Industrial ard agricultural growth es-
sential during reconstruction and
thereafter. II Is not difficult TO limit
the extent to which this shall go.
Question of Credit Important.
obligations to the Government Of each
railroad incurred or to be incurred
during the continuance of Federal con-
troll. The railroads cannot be returned
with their credit impaired. II it is 1t
viii be costly TO the shipper and to
the public. The higher their credit
the cheaper money can be secured by
them for purposes OF hauling freight
and passengers. The contract made
by Director General Burleson with the
telephone company provides that it's
obligations TO the Government shall be
paid In twenty years In yearly install
ments. Loans made by the Govern
nient to the railroads are made on call.
I'm reply TO the question whether
the association has matured its plans
and what will now be done IL may be
stated that plans have been discussed
but not matured. Such plans as may
be worked out will be submitted to the
committees OF the association.
This association through its mem
bership, directly and indirectly through
Institutional and individual member
ship, represents $4,000, 100000 of the
outstanding $4,000 900 OF securi-
ties of the railroads.
II represents through such member
chip 10000 900 people of the 100000
who own or are interested in railroad
securities.
Its management is vested in an ad-
visory committee Of 100 members from
sixty-seven cities and thirty-six States
an executive committee OF thirty three
members an active sub-executive COM
mittee of nine members. a financial
committee of seventy from thirty
four cities and thirty States, and a
general committee of fifteen repre-
senting ten States, many OF the last
named committee being shippers.
There are five VICE presidents. one
from each of the following cities, San
Francisco, Chicago, Galveston, Atlanta
and Newark, n. ].
Committees to Act on Plans.
"Any plan that may be developed
will be finally acted upon by the above
mentioned committees. beginning with
the sG5-executive committee in con-
ISOLATION with the advisory counsel OF
the association, which will play an i'm
portant part in these proceedings, and
other counsel. What will be done will
follow consultation with accredited
representatives of shippers, such as
the committee of nine recently named
at convention held in Cincinnati of
the National Industrial Traffic League,
which represents trade bodies and in
dlvidual and associated shippers to the
number OF upward of 100000.
''Jt should be recognized that the re-
turn Of the railroads calls for action
by Congress to provide for their
proper and safe return under plans
which will promote continuing eff
cheney. protect the various interests
concerned and produce sane methods
Of regulation.
This association, on the faith OF the
Intention and the provision made by
the Congress, as expressed through the
Federal control act, providing that the
railroads be returned within reason
able time after the war believes that
its duty to its members demands that
It take as prompt action as the i'm
portance of the subject permits and
render such service as II can in the
solution Of problems incident to each
return and TO perform its duty to the
public in order that such plans as may
be suggested shall make such return
permanent. II has no fight to make.
The questions involved are far too
great TO approach this subject in any
such spirit"
The National Industrial Traffic
League passed resolutions at the time
OF the appointment of the committee
mentioned by Mr.. Warfield against
Government ownership and against