Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-01-09
RAILROADS DRAW
PLAN Of RETURN
TO OLD STATUS
Interstate Commerce Commits
sion Goes on Record as Ap-
proving Return to Private
Management.
10y sossns JOURNAL sprcaL l-.r.U ~,erl


Washington, Jan. S.-Railroad ex-
ecutives have decided to recommend
to congress system of unified
private management of rail lines
with strong public control exer-
cised by a secretary of transportation
in the presidents cabinet, and n rec
organized Interstate Commerce com
mission, with regional divisions act
ing as court of last resort in rate dis
putes. ~' 'tt
This became known here today CO.
incidental with the disclosure of the
Interstate Commerce commission s atti-
tude that railroads should be re-
turned to private management with
in q reasonable period" to allow for
preparations and Establishments, and
under "broadened, extended and am
phfied governmental regulation"
The commissions announcement
was made by Commissioner Edgar f.
Clark. testifying at the senate inter-
state commerce committees hearing
on proposed railroad legislation, to
which the railway executives pro-
posefplan will be presented tomorrow
or Thursday. The commission opposed
indefinite continuance of government
ownership or operation of railroads
at this time andoutlil ed comprehen-
siye plan for legislation which would
not permit elimination of unnecessary
competition, pooling of facilities gov
eminent prescription of maximum and
u
ice, government direction of railroad
extensions and financing, and direct
cooperation between federal and state
regulatory bodies. Commissioner
Woolley dissented in part. advocating
Director General McAdoo's proposal
that government control be extended
for five wears to provide test period
The Interstate Commerce commits
sion's suggestions were the first al
ternatives to Mr.. McAdoo's extension
plans so far received by the senate
committee. Most of the commissions
suggestions are understood to be em-
bodied in the railroad executive S plan
which also proposes permanent req
tention of a greater part of the re-
forms effected by the railroad admin
istration.
To coordinate the agencies of gov
eminent control. the railroad execu-
tves propose to transfer TO the de-
partment of transportation the exc
cutive and administrative functions
now held by the Interstate Commerce
commission The commission would
remain the court of last resort as to
reasonableness and adequacy Of
freight and passenger rates, but the
responsibility for rate regulation would
be divided between the secretary OF
transportation, the commission and
new regional commissions represent
ing groups of states, reporting their
findings to the commission at Wash
ington.
The proposal of the railroad lead
ers is that rates filed by them with
the government. shall be reviewed by
the secretary of transportation, who
may approve or disapprove them or
refer them to the commission. Any
rates made the subject of complaint
by the public could be brought before
the commission for review, regardless
of the cabinet officers action. The
period for which rates might be sus-
pended pending investigation would
be reduced from ten months, as at
present, to two months,