Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-06-20

possible for any tribunal to agree as &c
now the matter ought TO be settled And
the old fight would start over again and
all OF the plausible arguments would be
made. That led to the greatest unccr-
tainty in the administration railroad
regulation.
we have in this country eight rail
roads with revenue of 81 900, 900 a
year each and several hundred railroads
OF less revenue. All of these railroads.
Dig and little, were necessary in some
way to the public service and anything
that might be done in the solution of
the rate or wage problems seemed to
result in giving some of the railroads
more than they needed and thereby Gre
ating popular dissatisfaction. At the
same time it gave some railroads so
much less than they needed that it was
almost impossible for them to perform
the public service which they were sup
posed to perform. Therefore it was al
most impossible to fix any rate that
would reasonably meet the needs of the
strong railroads and the weak railroads.
Failure to combine and satisfy that sit
uation started new agitation on both
sides.
Wants Something Definite
'NIy idea is that there ought to be n
definite statutory basis for the regula
ton and it ought to be ascertained what
is the value of these properties. There
ought to be n prescribed rate return to
| which they are entitled and that ought
! to be assured by some mandatory or
statutory provision. The rate must be
so fixed as to produce that return, and
beyond that. l think it ought to be
provided that if an additional return
shall be yielded from those rates. Il
sum to be determined for that purpose
is to- be put back into the property for
improving the property in order to keep
pace with the increase in demands of
business and that the money thus put
into the property out of the earnings
shall not be capitalized so as to further
add to the value of TIE property. That
would provide that the earnings made in
excess of what was necessary to operate
this property upon a standard return
would be put back into the property
| without being capitalized. This would
lead to the question of the public get
ting the improvements and they would
not have to pay for this exploitation
without any limitation of the public
having the benefit thereof.
FavOrs Consolidation
"Anothcr thing that l would recon
mend would be consolidation of the
railroads of this country into Il few
large competitive systems, all of which
shall present a fair average of railroad
condition. so that regulation can b.
applied to them and we will realize
Approximately uniform results. as tC
all of them. ! believe from twelve tc
twenty great railroad systems could bt
created in this country, each one OF
, which would present fair average o
iall the railroad conditions. Those rail
road systems could be SO arranged that
every important city that now has com
petition would continue to have com
pctition between the stronger railroads
/ believe if these things can be don'
that will present remedy.
"Another feature that | want t.
present to you is this as between reg
ulation of the railroads and the man
agement of the railroads under prlvat
: ownership, that, as matter OF TACT
the government is in partnership will
, the owners of the railroads. The gov
, ernment furnishes the franchises ant
the owners furnish the money, nnt
those two things have to be done il
partnership. My Judgment is this sit
uation ought to be met by having gov
ernment representation on the boar'
, of dirpctOrs