Republican farmer., 1919-08-22
R. R, HEADS
 ASK RETURN
 OF ALL LINES

Washington, Aug. 20-Recommen-
 dations 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 the House Commit
 tee on Interstate and Foreign Com
 nerce today by Thomas N. Dewitt Cuyler, chairman of the association. Congress, under the plan, would di- rect the interstate commerce com
 mission ito approve rates which will enable the railroads to be self-sus-
 taining." The rate regulating au-
 thority to be vested exclusively in the central commission and regional sub | commissions. There would be no guarantee of income or dividends by the government.
 Broad regulatory powers would be vested in a federal transportation board to be created as a coordinate body with the Interstate Commerce Commission. This board, to be com posed of three commissioners ap- pointed by the President, would be charged with general oversight of transportation from the point of view of the public interest. It would relieve the I. c. c. of all functions except rate regulation, valuation and ac- counting.
 In regulating rates the commission would act upon certification by the board from time to time of the amount of revenues needed by a rail- road to pay operating expenses and a | fair return" on the value of its properties and maintain credit suffi- cient to attract new capital necessary fpr ha v,Sin of fapilitiaG aS believed. MT. Cuyler said, the rail-
 roads should have from S7OO. 900 to
 $1, 1000, ,OO0.OO 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 | of certain lines. to require the use of
 joint terminals when in the public in | tereSt, and, in times of national emer- | gency, to instruct all lines into a uni | fled system. It also was recom- mended that congress authorize the | construction of existing lines into | strong. competitive systems" when | considered to be in the public inter- ! est.
 ! The association recommended Mir. | Cuyler said. a great unification O. l publlt dldtAOh bl lllt TdllIOdu DN | broadening national control It be- | lieved. he said, there should be ex-
 elusive national control of the issue l of securities and the expenditure oi new capital Provision for federal
 incorporation of interstate carriers
 also was advocated.
 ! To avoid the risk of financial dis
 aster. upon return of the road to pri-
 vate operation, MT. Cuyler said the
 railway executives believed it neces-
 sary that the guaranteed standard re-
 turn from the government be con-
 tinued until it was possible ito restore the equilibrium between revenues and
 expenses and make the carriers again tself-supporting. It was proposed that
 this readjustment of rates be under | taken by the I. C. c. in consultation
 with the Director General of railroads
 and the proposed federal transporta-
 ton board.
 By way of further financial relief
 for the roads upon resumption of pri-
 vate operation it was advocated that
 their indebtedness to the government
 on account of capital expenditures
 during the period of government con-
 trol be funded for ten years.