Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-12-05
Annual Report OF
Commerce Commission
Made Public Today

Washington, Dec. 5.-Regardless Oh
whether railroads finally go back 10
private management or remain in the
hands of the government, radlcal
changes should be made In their
methods and theories of operation to
provide a partial merger under some
sort of government regulation, the in
terstate commerce commission says IN
it's annual report made public today.
The commission believes h time
is not ripe to recommend concrete
proposals for legislation relating to
the future policy toward railroads u
says whatever he the nations decision,
| there should be provision for complete
u%niication of the railways In war
time. partial merger in ordinary times,
Limitation Of railway construction to
public necessity, and systematic en-
couragement of the development OF
inland waterways, and their c~o-ordina-
! ton 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, says
| the commission, there should 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 supervi-
sion: 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-support-
ing; measures to define carefully the
responsibility of the railway admins
tration to congress and other federal
and state authorities; guarantees
against intrusion Of partisan politics
into railway management, n crea-
ton of a tribunal to settlement OF
controversies Yer railroad matters.
Some sort of government regulation
is suggested by the commission in on
nection with each of the five alterna.
tives 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.
The rpeort deals at length with the
upheaval Of railroad relations caused
by the war and the governments as
sumption of operation, and the rela-
lions Of the interstate commerce COM
mission to Director General McAdoo
and the railroad administration. The
commission has co-operated fully with
the government management, says the
report. but the commission still re-
tains it's authority to review rates in
itiated by the director general.
Railroad valuation work Of the
commission, which will become. of
great Importance in case of govern
ment purchase, is proceeding with lit
tie interference on account of the war,
Safety work has been assumed partly
by the railroad administration, but ed
ucational work is being continued
throughout the country. The commits.
sion in the last year has made grea,
strides in seeking to promote uniform
rate c~lassif1cations, and has undertak.
en- a number of other investigations
of rates and practices.
The report, including the statement