Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-08-16
URGES STEADY|NG HAND
TO AMERICAN RAILWAYS
Securities Holders Counsel Before
committee Declares Warficld Plan
Is Only Way Out.
ROADS LONG IN BREAD LINE
ttelfcf Denied by Interstate Conn
merco Commission Because Few
Lines We're Making Moncy-Niany
Systems Never Paid Dividends.
[Ry Associated Press. !


WASHINGTON. August :5.-If Con-
gross proposes to build a foundation
LOT Anne rican prosperity It must extend
rordney Johnson. OF advisory counsel
tor the National Association OF owners
or railroad Securities, told the House
day.
IF Congress does not take cour-
aSeous and constructive action now"
SAID MIR. Johnson. appearing in behalf
OF the Wariieid per cent return PLAN
the progress of generation toward
weIl-regutated system Of privately
owned and operated railway transpor-
tation will be destroyed and the Sixty
sixth Congress Will have forced gov
eminent ownership under conditions
and with results which the future alone
can assay.
Only Possible Rcmcdy.
Mr.. Johnson commended the Security
owners Association had presented the
only. process that would avoid this
rstal and irrovocabic step
Pointing out that In 1916 ninety one
railroads, operating more than $4,000
miles. had paid no dividends whatever.
been kept in bread line before the
door Of the Interstate Commerce Com
mission since 1910. and thot relief by
ErudGingly and sparin=ly dealt out be-
cause certain roads in each region
were thought TO be aiflucnt
Yet before the committees Of Con-
the commission TO advance rates" the
witness said. "a vast mileage of Ameri-
can railways has been choked of with
INC assertion that average statistics
SHOW average prosperity In all o!
these cases the commission has been
actuatcd TO deny general n lief because
com mission was unwilling TO add TO
their prosperity even TO ave the large
number OF roads which were receiving
admittedly Inadequate revenue
Ixfd Err In
~ was 10 meet this situation he
told the committee. that the Warfeld
plan would direct the commission to
FIX rates so that the roads could earn
a minimum guaranteed return Of 6
per cent upon capital invested, with
division OF an surplus over that figure
among employees, the public and the
earning road
'"rHe fundamental proposal OF the
Warheid plan. Mr.. Johnson declared.
lis tina; this continual basis o. war
fare between the shipper and tie rail
roads the constant depressing factor
against relief before the commission
wnen relief is necessary. must be re
moved by regulation of excess earn
inSs which Viii relieve shipping or
CARNATIONS Of their apprehension and
the commission Of the otium which
railroads were given hiEhc! rates 10
protect American transportation from
Bankruptcy"
.OnI! Acceptable Vehicle
SAVINGS HAuk Association OF New York
told the committee half the people Of
the United states were directly in
terested in the return OF the roads 10
private ownership on basis that
would afford adequate protection 10 Sc
euri,y holders; The, Warfcld plan. he
said. was the only acceptable We
hicle for Accomplishment OF this end
The only idea in the minds OF many
people regarding railroad securities"
" owned and held by the very wealthy.
They do not stop to consider the fact
that the ma ior portion Of the liquid
wealth Of the nation consists OF the
small Accommodations OF the many"
Provide Special Committee.
Investigation OF charges laid before
the House Interstate Commerce Com
mittee by Glenn T.. Plumb regarding
alleged systematic nlundering OF rail-
roads would be made by special com
mittec under a resolution introduced
today by Representative Hudleston,
Democrat. OF Alabama.