The Washington herald., 1919-05-24
RAILROADS. BIC
ISSUE is RATES
Root, Hill, Hartman, War
field and Cuyler Agree on
This, Says Holland.

Should Congress so legislate-and
the president approve the legislation
-ass to restore the railroads to pri-
vats ownership by the first of Janu-
aryg 1919. then the certainty that this
willsb done will tend Immediately to
AFFECT very favorably business condi-
tions. This at least is the view taken
not only by railroad executives but
by business men and by many of the
finapcial leaders.
The fact that at the meeting of the
savings banks and trust companies
section of the American Bankers As
sociation which was held a few days
ago, at White Sulphur Springs the
representatives voted unanimously to
support the so-called warfield plan
for the return of the railroads to
private ownership and adequate gov
ernnent regulation of the railroads.
demonstrates sufficiently that the
leaders in American banking life will
aid IN every way possible the govern
ment and the railroad executives.
The so-caIled Warfield plan which
was worked out by Davies Warfield.
who represents the National Asso-
citation of Owners of Railroad Securi-
ties. is spoken of here as the simplest.
most reasonable and satisfactory
proposition yet made for the return
Of the railroads and their subsequent
regulation and supervision by the
government. \ few days ago one of
the leading business men of New
York who in the past had large ex-
perience in railroad matters. said
that all that is needed in order to
adjust the problems satisfactorily is
the exercise OF common sense. Many
OF the difficulties which have been
raised and commented upon are of no
consequence. They can be swept
away. this authority said in a mo-
nent and that seems to be the idea
contained in the letter written by
former Senator Elihu Root to Mr.
Warfield
Many times it has been said of late
shatewith peace negotiations satisfac-
.orlly completed and with the rail-
road situation well adjusted to the
iuture needs of the country there will
stand no serious obstacle in the way
Of development Of the great era Of
prosperity which awaits us IL We atke
advantage OF our opportunities.
Both Senator Root and Mr.. War
held agree upon one point, and that
s vital point With his customary
acuteness and profoundness OF
thought, his mastery ability to reach
Arectly at the central point in any
Ssue-qalities which are characteris-
ic Of Senator Root-he has pointed
out that the only vital issue in the
railway situation is the question of
.ates.
= Senator Roofs Opinion.
Senator Roots opinion does not
NHffar hA fok
maintained for long time by the
leading railroad executives of the
United States. James ]. Hill used
% say that il reasonable and ade-
Iuate rates could be secured the
'ailroads would be able easily to
meet the enormous demand for
transportation which American busi-
hess and Industrial life would make,
Ind would also be able to stimulate
aoreign commerce.
That was the view taken by E. H.
Hartman. He said three or four
Tears before his death that If he
.ould be assured that the govern
nent would permit reasonable rates
% be adopted he could put the Erie
ailreads in such condition that
within a short time it would be pay
ng dividends upon its common
Iock- To do that would have been
wonderful achievemnt. The COM
nonrstock of the Erie Railroad is
acceptable if mixed in with other
ecurities as the basis for a call loan
ecurity. The late Frederick d. Tap
an used to say that he always
liked to have a little Erie common
took mixed in with other securities
'ecause il could be sold instantly,
= speediIy as a government bond