The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1919-06-21
Congress Determined to Make
Certain Future Growth Of
Transportation Facilities. Is
PLANS AGREE ON PRINCIPLES.
Return OF Roads 10 Owners With
Assurance of Adequate
Revenues.


| ting the railroads back on peace
basis. These 100000 miles of steel
highways were taken over by the Gov.
eminent as an Indispensable arm OF
the national defense bur now that
| their war service Is over, there Is a
countrywide demand that the Gov
eminent restore them to their owners
to be operated on normal American
business standardsJ6f efficiency
But, as has been pointed out by
President Wilson as we'll MS by many
men in public life who have given
this subject years of careful study,
II Is not enough simply to say to the
railroad companies, Take these rail-
roads and give the country the best
transportation service that money and
brains can provide"
Old Laws obstruet Growth.
The President recently said that II
would be serious mistake to return
to the old conditions of railroad regu-
latiop without reforming the anti
quated laws that were obstructing the
free development Of transportation flu
cllities. The Director General OF Rail-
roads has recently made an inspection
trip from coast to coast. and he has
been telling the people that the time
has now come to put the railroads on
q sound foundation.
The plans for better system OF
national control of railroads are AZ
varied MS were the plans for banking
and currency reform when Congress
received a mandate from the people
to provide Insurance against financial
panicB. The public now demands In
suranee against breakdown OF raiI-
rond transportation, and the new Con-
gress ~ undertaking this work as see
ondary only 10 Insurance against in
ternatienal warfare. Congress solved
the banking problem seven YEARS ago
as non-partisan issue, In which all
the people had common interest, and
Congress evidently Is tackling the
railroad problem with the same spirit.
While the many plans that have
been proposed differ In the methods
10 be adopted In reaching the desired
goal. II has been pointed out by Sena-
tor Cummins Of Iowa that NIL these
plans have really very much In COM
mon---so much so that he Is confident
that Congress Will have little difficulty
In framing bill that will meet with
popular approval, and that will take
the railroad question out of politics
for many years to come.
Many Plans With One Aim.
The Iowa Senator has a command
Ing position In this Congress because he
Is the ranking member OF the Interstate
Commerce Committee OF the United
States Senate, and IL is IN this com
mittee that the new railroad bill Will
take final form. In IN address before
a national meeting of business men
Mt 81 Louis Senator Cummins stated
that since the close OF the war fully
thirty complete plans for new railroad
legislation had been submitted to him
by business men, economists, bankers.
railroad officials and owners. Govern
nent officials. railroad workers and
lust plain citizens.
The basic principles upon which all
of these plans, with one exception.
agree are MS follows:
!. Private operation is more eff.
Gent and more economical than
Government operation, and the
public interest will therefore he
served by a return Of the roads 10
private management.
z. 70 make certain that new
capital will be attracted TO the
expansion Of railroad facilities.
mere ought to be greater certain.
~ that fair return will be earn.
cd on the investment.
D. inc merging Of weak and
strong roads into large COMPETING
systems should be encouraged.
Inc making OF formula to pro.
lue FAIR return on railroad eanttol
Gems likely TO be the phase Of tbe
problem most thoroughly debated in
congress-. The Director General has
'een urging that the Government
ught to guarantee certain return
ND share IN any excess earnings
leading bankers, especially some Of
he International bankers in wall
treet, who have in the past marketed
Many hundreds of millions OF railroad
ecurlsies, also look favorably on the
uggesiion OF a Government guaran.
&c. which will make IL easier TO sell
ew securities, and viii also stabilize
he market for the old bonds and
tocks.
eovernmeng Guarantee Opposed.
But the proposal that the Govern
rent shall guarantee the interest and
iyldends on private capital invested
railroads WIN undoubtedly meet
nth very vigorous opposition in many
uarters. Even railroad executives
mo might be supposed 70 take kindly
D the Idea Of Government guarantees
gainst failure, have frankly stated
nat they do not want II, because they
elieye It ls un-Amerlean In principle.
'onld tend TO leceeh eniciency. and
'oald involve tbs roads Ia a Govern
leht partnership that would inevIta-
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