The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-08-20
RATE PROVISION
FACTOR IN RAIL
EXECUTIVE plan
Asks Return Under Self Su-
staining Rates to Provide
Adequate Return.
(By Associated Press)


WASHINGTON, August 2O.-Recom-
mendations Of the Association of Rail-
way executives for return Of the rail-
roads to private operation under con-
ditions that will insure adequate hev-
enues and maximum service to the
public were laid before the house COM
mittee on interstate and foreign COM
merce today, by Thomas Dewitt Guy
ler, chairman Of the association.
Congress. under the plan, would di-
rect the Interstate Commerce commits
sion to approve rates which will en-
able the railroads to be self sustain
ing" the rate regulation authority to
be vested exclusively in the central
commission and regional sub-commis-
sions. There would be no guarantee
of income or dividend by the govern
ment.
Broad regulatory powers would be
vested in federal transportation
board to be created as a coordinate
body with the Interstate Commerce
commission. This board to be COM
posed Of three commissioners appoint
ed by the president would be charged
with general oversight of transporta-
ton from the point Of view of the
public interest" 1t would relieve the
Interstate Commerce commission of
all functions except rate regulation,
valuation and accounting.
Require New Capital.
In regulating rates the commission
would act upon cirtification by the
board from time to time Of the amount
revenues needed by a railroad to pay
operating expenses and fair return
on the value of its properties, and
maintain credit sufficient to attract
new capital necessary for the expan-
sion of facilities. 1t Is believed by
Mr.. Cuyler that the railroads should
have from 100000 to 100O,000,000
of new capital annually for extension
of facilities to meet the growth of
population ind 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 in
terest, and, in times of national emer-
gency to consolidate all lines into a
unified system. 1t also was recon-
mended that Congress authorize the
consolidation of existing lines into
strong competitive systems" when
considered to be in the public interest.
Broader National Control.
The association recommended, Mr..
Cuyler said, a greater unification Of
public regulation Of the railroads by
broadening national control. He be-
lieved, he said, that there should be
exclusive national control of the is
sue of securities and the expenditure
of new capital. Provision for federal
Incorporation of Interstate carriers al
so was advocated.
To avoid the risk of financial dis
aster upon the return of the roads to
private operation, Mr.. Cuyler said the
railway executives believed it neces-
sary that the guaranteed standard of
return from the government be con-
tinued until it was possible to restore
the equilibrium between revenues and
expenses" and make the carriers
again self-supporting. 1t was proposed
that this readjustment of rates be
undertaken by the Interstate Com
merce commission with the director
general of railroads and the proposed
federal transportation 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
made during the period of government
control be funded for ten years.