The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-24
WANT PROGRESSIVE
ROADS REWARDED
Railway Business Association
Head Asks Cummins to
Devise Plan.
MOVED BY BILL IN SENATE
SAYS Proportion of Excess In
come Should Go to Carrier
Earning 1t.
stecinl psspatch to TIE spN.

WASHINGTON, Sept. 23.-Alba p. John
SON president of the Railway Business
Association, in a letter given out to-day.
calls on Senator Cummins, chairman of
ne Senate Committee on Interstate
Commerce to devise some method by
xhIch every carrier, in event that part
n, It's excess income be diverted from
Fla treasury of the road that earns it,
NiIl retain a cash incentive for better
ssrvice, larger earnings and larger saw
hgz Granted that an arbitrary return
must be prescribed. Mr.. johnson asks
why can Il not be return deemed
adequate for the average road in the
average year, a return which will en-
able the average road to sell its securi-
ties and serve its public.
After expressing hope that. whatever
be done, the condition will be such that
ths unprogressive road will suffer for
IT'S Incidence and the progressive road
enjoy the reward of its enterprise. Mr.
Johnson says in the letter: "Cobwebs
would gather in the departments where
railway appliances are developed II no
railroad had anything to gain by trying
new devices or anything to lose by ignor-
big opportunities for efficiency and
economy"
The letter was called forth by the pro-
visions in sections and rs of Senate
bill 1905 dealing with the disposition of
railway income exceeding a fair return.
The letter as written by Mr.. johnson
says In part:
while we refrain from expressing an
opinion upon the wisdom or unwisdom of
using excess income in any of the ways
suggested we repeat our plea for re-
wards TO the progressive in proportion
to their progressiveness. and hence urge
that " there is to be diffusion of excess
income a generous proportion of the ex-
cess shall be left with the carrier that
Earns II
what the public needs to permit is a
return which will stimulate enterprise
and invite new capital. The Railway
business Association has proposed that
revenue should be sufficient for the
average railway In the group in the
average year. Two considerations are
involved in that statement. This bill
recognizes both. It prescribes that the
arbitrary return may include just adj
vance to provide reasonably for future
years In which there may be insufficient
earnings In other words. provision is
made for the average year. 1t also
IreScrlDeS as 10 the rate MAKING SrOup
Of roads that the level of rates shall be
determined with reasonable reference to
average conditions therein In other
words, provision is made for the aver
age road
"In large scale rate cases beginning
with 1910 the Interstate Commerce
Commission has always dealt with con-
sOhdated group statistics.
IF an arbitrary return must be pre-
srbed why cannot it be such return as
"a deemed adequate for the average road
h the average year-such a return as
Will enable the average road to sell its
securities and serve its public? Adopt
big this rule. If you feel impelled to di-
vert a part of the excess income from
he treasury Of the carrier that earns it,
can you not devise some method by
which each carrier will retain a cash in
sentive for better service, larger earn
hgs and larger savings?"