Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-05-20

one of the big problems for con-
ercss lust assembled to work out Is
how to handle the railways. The IA"
passed by congress declared return Oh
the lines must be made
There will be no serious opposition
TO the government unloading the rail-
WAYS as soon as 4 way can be found 10
safeguard wage interests and at the
same time give to the owners rcasoha-
bic assurance of safety of investments
The federal director of the railways
has announced that It is to the inter-
est of the country TO have the owners
take charge of the lines and operate
them as soon as possible. Some gov
ernmental regulations are proposed by
him, including compulsory consolida-
ton into regional groups. each group
to be operated as a unit.
Now comes the National hssocia-
ton of owners of Railway Securities
with what they say IS a simple solu-
ton. This association is composed of
members representa-. $4,000, 600, 600
of the $4,000, O00,0 900 of securities is
sued by the more than 1000 railway j
companies.
The association was formed to de-
wise plan to prevent loss Of invest
ments, which exceed the amount OF
the debt incurred by the United States
in this war, if the sums loaned = for
cign nations be deducted.
To a great measure. this plan may
he considered as that of those usually
called owners of the railways. For
bond owners and stockholders domi-
nate the fate of the properties.
While many persons of varying de-
grecs of wealth individually own rail
way securities. the bulk of the obliga-
tons belong to savings banks and in
surance companies. They were pur-
chased to assure steady return on
funds of depositors and pOlicyholders
and of stockholders in banking and
insurance corporations.
Fifty million people of the country
are interested in these securities.
Thirty million own unduplicated poll
Cies of life insurance, and their insur-
ance companies have one-quarter of
their investments IN securities of the
railroads. Every man who has in
sured his life has. therefore. one
quarter OF the money to protect his
family and those to come after them
invested in these securities. Millions
of depositors of the savings banks are
protected by millions of their deposits
invested in railroad securities.
The plan OF the security holders
and advisers chief OF whom is Elihu
Root was recently laid before the
National Association of Banl erS by
President Warf.eld of the association
with the reasons for its adoption
The plan opposes comp lsory con
solidation into systems, but seeks re
moval of restrictions so that where
public interests require it one line
may buy another and consolidate in
operation.
Nor do the sccurityholdcrs wish to
have any government guarantee for a
fixed compensation such as is now
given They also call attention to
the fact that the country was not de-
veloped hy the contraction of rail
road facilities and elimination OF COM
pcutive service, In the proportion
that existing railroads consolidate into
the few regional railroad companies
IN that same proportion will facilities
be contracted, incentive and indiyid-
ual initiative be curtailed. 1t is not
the present railroad structures that
have caused the trouble; It is the lack
of proper regulatory methods under
which these structures should have
been conducted
Mr Warfeld goes on to outline tho
plan his association favors. The mat
ter following is a condensation of the
views, based on the idea of doing as
little as may be done to be effective in
results; that those results shall be
ce1ned. the shipper, tho public, the
employees and the owners of the Sc
curities of the properties
The powers of the interstate COM
merce commission would be enlarged
but congress would make a fixed rule
that rates sufficient to syield six per
cent on property investment accounts
should be allowed, This does not
mean six per cent on securities issued
by the railways, but upon property
investment accounts. The data IS al
ready in hand and approved by this