The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-08-25
PLAN FOR RETURN
OF THE RAILROADS

Washington, Aug, 23.--Proposals OF
the Association Of Railway Executives
for return OF the railroads to private
operation under conditions that will
insure adequate revenues and maximum
service to the public were laid before
foreign commerce yesterday BY Thomas
N. Dewitt cuyler. chairman OF the a.
ISOLATION.
Congress, under the plan. would d.
rect the interstate commerce commits
sion ito approve rates which will ena-
bic the railroads to be self-sustaining."
the rate-regulating authority 70 be
vested exclusively in the Central Com
mission and regional subcommissiora
There would be no guarantee OF in-
come OF dividends by the government.
Broad regulatory powers would be
vested in q federal transportation
board to be established As = co-or-
dinake body with the Interstate Com
merce, commission. This board. to
be composed of three commissioners
appointed by the president would be
charged with general oversight OF
transportation from the poin1rof view
OF the public interest. II wiuld ralievs
the Interstate Commerce Commission
OF all functions except rate regula-
tor, valuation. and accounting.
In regulating rates the coWmission
would act upon certiicatfon by the
board from time to time Of the amount
OF revenue needed by railroad to
Fay operating expenses and q fair
hcturn" on the value Of Its properties
and maintain credit sufficient to at
tract new capital necessary for the
expansion OF facilities. 1t wac be-
lieved. Mr.. Cuyler said. the railroads
should have from s70o.o00.o00 to ST.
.o6o.ooo,o 900 Of new capital annually for
expansion Of facilities to meet the
growth OF population and industry.
The proposed board also would have
authority to distribute traffic when
necessary to relieve congestion on
certain lines. to require the use OF
joint terminals when In the public
interest, and. In times of national
emergency, to consolidate all lines
into = united system. 1t also was rec
commended that congress authorize the
strong competitive systsms when
con1idersd to be in the public interest.
The association recommended. Mr..
Cuyler said. , great unifcatfon Of pub
lie regulation of the railroads ~
broadening nationtl control. It be-
lieves. he said. there should b ex-
elusive nationaf> control of thu Issue OF
securities and the expenditure Of nav
capital. Provision for federal incor-
advocated.
s.To avoid the risk Of financial dis
aster." upon return Of the roads 70
private operation, Mr.. Cuyler said the
railway executives believed 1t necAs-
sary that the guaranteed standard re-
turn from the government b con-
tinued until It was possible to restore
the equilibrium between revenues and
expenses. and make the carriers hgAtn
self -supporting. 1t was proposed that
this re-Adjustment OF ratss be under
taken by the Interstate Commerce
Commission In consultation with the
epsrector-Genersl of Railroads. ana the
proposed federal transportation board.
+ BY way OF further financial relief
Tor the roads upon resumption OF prt-
vate operation It was advocated that
their indebtedness to the government
on accent OF capital expenditures
made during the period OF government
control be funded
In concluding his statement. Mr..
Cuyler attacked the Plumb plan tor
reorganization Of the railroads. de-
clAring Il was so radical that whAn
understood It never would b. approved
ny the country. 49,