El Paso herald. (El Paso, Tex.) 1901-1931, 1919-05-14
ROOT CONDEMNS
RAILWAY PLANS
Wants Congress to Fix a
Fair Rate Of Return
In Each District.

ST Louis, Ia, Nay lA--Compui-
sorv federal incorporation Of rail-
roads. government guarantees OF IN
come and the removal Of the roads
from the jurisdiction Of the present
state commissions. as steps proposed
p-ior to the return OF the railroads
10 private ownership were con-
5emned by Elihu Root in letter
read today before the Missouri Bank
ers- convention in session here Mr-
Roots letter was read by S Davies
Warfield. president Of the National
Association OF Owners Of Railroad
Securities. who had requested an
opinion from Mr. Root as advisory
counsel 10 the association
Ar an alternative, Mr. ROOT IN
.---.ffffe7rr endorsed the plan put
forward by the Security. owners as
ISOLATION under Wnlcn congress
would fix a fair rate or return loI
the railroads Of each rate MAKING
district as q whole. and require lne
rate making authorities TO TX rates
which would presumptively yield thaL
return In the event OF any Ioau
making more than the PRESCRIBED re-
turn, the excess would DC taAS- -
the government and used 70 plo-
mote public interest in transporta-
a general rate, fixed by the gov
eminent for all railroads 5aE- Etoo-
contends. has this defect II me Idlle
IS fixed so as to give fair return
TO weak roads, it viii give an eA-
eessf-e return to the strong ROADS
while. If the rate is fixed on the
basis OF an equitable return TO tAS
strong roads. il would drive Yet ~
business their weaker compeLlloIs ;
rn-nnaTaH his 0nnulDu " ALA
the statement
1T is apparent that the people Of
the country DO not wish 70 enter
unon permanent system or gov
eminent operation me IeliLv ~ ~ 81, q =
10 be returned TO private ownership
and they cannot be permitted 70 50
baclz 20 the uncontrolled operation OF
The earlier period" He maintains
also that some provision must PC
made 10 prevent the continuance %
The steady progress toward DAnA-
People own Roads.
He points out that half Of the PEG
ME Of the country are represented Oh
rectlv or Indirectly IN the sLtyyt'-
00o 600 Of securities representing the
railroad Investment Of the country.
and that one quarter OF the savings
of s0.000.G00 people holding policies
in the great life insurance com
nanfes is invested through these com
panies in railroad securities nat
however" he continues, rs only
small part Of the reason for some ar
ranEement which will maintain the
value Of these securities Railroad
securities are a chief basis OF credit
On which depends all the business OF
the country. and if that credit be de-
srroved the consequences TO an
American prosperity VIII ne lncal-
culably disastrous.
In regard TO federal Incorporation
on Mr.. Root says
There is only one avowed purpose
which could be accomplished BY THIS
nIan and that is to withdraw rail-
roads entirely from the jurisdiction
OF states commissions The states
commissions ought not TO be de-
stroved. The people along the lines
OF the railroads in the several sta res
ought TO have near their home booles
10 which they can 90 4Or redress or
grievances against the railroads
They ought not to be compelled 70 90
70 Washington for that purpose The
proposal for a government guaranty
is objected TO by Mr.. ROOF on lne
ground that, as the government m US
make the guaranty good there WOuld
be neither opportunity nor incentive
for private enterprise in the man
azement or development Of rail-
roads The guaranty plan" ne says
gives tlem their living Wnelnel
H -'f- 49,
TO enterprise and efficiency IN
commenting on AIr. Roots letter M
Warfield said
Too Many Plans
aThe danger that confronts the
country is not that there Is a senti-
ment at this time for government
ownership or governmental control
and operation; but, that in the multi
pIicitv Of plans that have been sug-
relief of the railroad S,
LEGISLATION may fail altogether al
the special session Of congress. and
roverum eut ownership may be forced
upon us because Of ncnaction- Il the
railroads are returned without ade-
ouate legislation financial chaos VII
result"
MESSAGES TO MOTHERS.
julius Wild. custodian Of the KHAKI
IL. -.-r-El--c- Inn St nTr-is- Mnere lE