The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1919-08-22

Which Should Be Sufficient to Sus-
tain the Roads
WASHINGTON, Aug. d Recommend
atoms OF the Association of Railway ex
ecutlves for return of the railroads to
private operation under conditions that
will insure adequate revenues and maxi
mum service to the public were laid be-
fore the house committee on interstate
and foreign commerce yesterday by Thorn
as \, Dewitt Cuyler, chairman of the as
ISOLATION
Congress, under the plan, would direct
the interstate commerce commission Ito
approve rates which will enable the rail
roads to be self-sustaining, the rate reg
ulating authority to be vested exclusively
IN the central commission and regional
sub-commissions There would be no
guarantee of income of dividends by the
government.
broad regulatory powers would be vest
cd IN a federal transportation board to be
established coordinate body with
the interstate commerce commission This
board, to be composed OF three commits
sloners appointed by the President, would
be charged with general oversight of
transportation from the point of view
of the public interest. 1t would relieve
the interstate commerce commission of
all functions except rate regulation, val
uatlon, and accounting.
In regulating rates the commission
would act upon certitcation by the board
from time to time Of the amount OF rev
enues needed BY a railroad to pay operat-
ing expenses and fair return on the
value OF its properties and maintain cred
II sufficient to attract new capital neces-
sary for the expansion of facilities 1t
was believed Mr. Cuyler said. the rail
roads should have from 500, 900 900 to 81,
00eO00.000 OF new capital annually Tor eX-
pansion of facilities to meet the growth of
population and industry
The proposed board also would have aif-
thorlty to distribute traffic when neces-
sary 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
recommended that congress authorize the
consolidation of existing lines into strong
competitive systems, when considered to
| he in the public interest.
The association recommended Mr.. CIV
| Ter said, a great unitication OF public reg
ulatlon of the railroads by broadening ma
| tlonal control 1t believes he said. there
| should be exclusive national control OF
the issue OF securities and the expenditure
| Of new capital Provision for federal in
| corporation of interstate carriers also was
| advocated
TO avoid the risk of financial disas-
ter, upon return OF the roads to pri-
waite operation, Mr. Cuyler said the rail
way executives believed it necessary that
the guaranteed standard return from the
| government be continued until it was
| possible to restore the equilibrium be
tween revenues and expenses and make
| the carriers again self-sunporting. 1t was
proposed thats this readjustment OF rates
be undertaken by the interstate commerce
commission i'll consultation with the di
irector general of railroads, and the pro
posed federal transportation board
BY way of further financial relief fol
the roads upon resumption of private op
Grafton 1t was advocated that their in
debtedness to the government on aceoun
of capital expenditures made during tn,
period OF government control he funded
In concluding his statement Mr. Cuyle
attacked the Plumb plan for reorganiza
ton of the railroads, declaring it was 81
radical that when understood it neve
would be approved by the country