New-York tribune., 1919-08-21
New Board to Fix Rates Ad-
equate for All Purposes
Is Suggested: Expansion
Also To Be Provided For
Unifcation l. Favored
Indebtedness of Companies
to the Government To Be
Funded for Ten Years
NrW York Iflbsrs
WG N hirg'On Burear

" WASHINGTON. Aug. 20 leg & Ia
tion which the Association Of Railway
executives, representing 81 per cent o.
the railroad mileage # the country
believe should be enacted 20 meet the
railroad situation when the roads arr
returned to their owners was outlined
% the House Interstate and Foreign
Commerce Committee to-day by Thomas
De Witt Cuyler, chairman Of the asso-
ciation
The main principles recommended by
Mr.. Cuyler. and which have been
unanimously adopted by the assoca
tion, provide for the following:
J. Approval by public authorities
Of rates that viii enable the rail-
roads Of the country to be self sus-
tanning and TO command the new
capital needed year by year for ex-
panslon Of railroad facilities. but
with no guarantee Of income by the
government. The growth of popula-
tion and Industry now requires the
annual investment Of from S7000OO,-
coo TO $l,000.0o0,000 Of new capital
Adequate Rates Demanded
Exclusive regulation of rates
by the Interstate Commerce Commis-
sion with the aid Of regional sub
committees. and with definite
direction by Congress 70 the Inter
state Commerce Comm ission that:
The level Of rates shall provide
revenue sufficient 10 pay wages and
other expenses Of operation. fair
return on the value Of the pr0perty
used in the public service and estab-
ish and maintain credit sufficient
to attract the new capita necessary
to meet the public need for trans
portatlOD facilities
8. Greater unificatlon OF public
regulation Of the privately owned and
operated companies. by broadening
national control, with exclusive
national control Of the issae of
securities and the expenditure OF
rev capital and provision for Fed
eral incorporation Of Interstate car
riers
T. Authorization Of consultations
Of existing lines in.o strong corn
pctitlVe systems. whenever found 10
De ln The public Interest also pro-
Vding for Joint use Of equipment and
terminals when IN the pAbic interest
.. ederal tran portation board
charged with the general oversight.
from the point OF view OF the public
interest Of all trans sportation
President Appoints Board
The Fedora transportation boarf
proposed oy the railways would be corn
posed Of three commissioners a0
pointed by the President This boar.
would be coord nate with the luterstat.
Commerce Commission. and would re
heve i Of all functions excepting rats
regulation. valuation and accounting
The duties Of the Fedora frsnspoTta
uon board, n addition. would be:
A. TO certify from sine 20 SINE &.
The Interstate Commerce Comm s-lu-
the amount Of operating revenue.
needed Wy tho carriers to enable safu
10 perform their public service
ID To require tho Distribution I
times Of congestion of the traffic from
the more con4ested TO he lass con-
gcsted lines when ~ the pubic n'erest
&c To require the 3oint use Of Ter.
miuaIs VIXEN ir .he public interest
10 To consolidate al lines INTO Il
unified system in umes Of na.iona
emerrenca a. directed BY 'he Pres
dent
Temporary Policy Suggested
lu order te provide p bridge over
which THE railroads cam -eturn to prs.
vate operation. without risking finar.
clal alsaster. the railroad executive
made ttese sacgestions
ID That with lac termination Of gor
erumoa- operation tte 'eve OF rate.
established by the government should
remain 'anp nporariiy .n force
That the Interstate Commerce
Commission. IN Consultation WISH ths
director general of railroads and .he
rew Federal sportation board
should readiust rates so as to restore
tho equilibrium between revenues and
expense and make the carriers again
sVit supporting
80 Inat. pending tnis read Iu-tment
the government guarantee of The stand.
ard return should continue
A. That the Indebtedness - "a,
railroad companies 90 the government
on account of new capital expenditures
made duriag war control aholid be-
funded for ten years