Republican farmer., 1919-08-22
BANKRUPTCY FACES RAILROADS
 WITHOUT HELP Johnson Asserts Congress Must Extend Steadying
 Hand. ONLY WAY TO
 INSURE PROSPERITY Ninetyone Railroads Pass ed No Dividends What
 ever in 1916.

Washington, Aug. Eff Congress proposes to build a foundation for American prosperity it must extend a steadying hand to the railroads, Forney Johnston of the advisory coun- sel for the National Association oe Owners of Railroad Securities, told the House Interstate Commerce Com mission today.
 If Congress does not take courage ous and construction action now said Mir. Johnston, appearing in behalf of the Warfeld Six Percent Return Plan, the progress of a generation toward a well regulated system of privately owned and operated rail- way transportation will be destroyed and the siXty-sixth Congress will have forced government ownership under conditions and with results which the future alone can assay
 MT. Johnston contended the Se- curity Owners Association had pre- sented the only process that would avoid this fatal and irrevocable step"
 Pointing out that in 1919. ninety one railroads, operating more than eighty thousand miles, had paid no dividends whatever, he declared American railroads had been kept in a bread line before the doors of the Interstate Commerce Commission since 1910. and that relief by the Commission had been denied or grudgingly and sparingly dealt out because certain roads in each region were thought to be affluent.
 Vet before the commissions Of Congress and in every case brought !, +n oJ rates" the witness said, "a vast mile age Of American railways has been choked off with the assertion that av- craze stocks show average prosperity. Tn all of these cases the commission has been actuated to deny general re- lief because certain roads were pros porous and the commission was un- willing to add to their prosperity even to save the large number of roads which were receiving admittedly in adequate revenue"
 It was to meet this situation ha told the commission, that the War field plan would direct the commis- sion to fix rates so that the roads could earn minimum guaranteed re- turn of six per cent upon capital in vested with division of all surplus , over that figure among employees, the public and the earning road. 'The fundamental proposal of ths | Warfield Plan,' MT. Johnston declar- { ed, lis that this continual basis of ! warfare between the shipper and the | railroads, the constant depressing factor against relief before the com | mission when relief is necessary must | be removed by regulation of excess earnings which will relieve shipping organizations of their apprehension and the commission of the odium which would be visited upon it if affluent railroads were given higher rates to protect American transpor- tation from bankruptcy
 In contending that Congress must give constructive relief or else sec the railroads plunged into bank ruptcy or government ownership MT. Johnston said the Warfeld Plan of fered the "one solution upcn which all conflicting elements in the situa- ton could unite"
 We feel absolutely assured" ho said, that in presenting the associa- ton plan we stand upon safe grounds. consistent with the constitution and with American traditions While it is progressive in its acceptance of the idea of complete regulation we are, good service, high efficiency and con sideration for passengers and ship pers which no governmental organ ism or class organization would &C., cord"