The sun., 1919-05-21
BANKERS APPROVE
WARFIELD'S PLAN
Representative of Savings
Banks and Trust Companies
s., Indorse Proposal.
Special DespatcA TO Tnr srS.

Special Despdtch to THr suS.
WHITE SULPHUR SPRINGS, w. Va,
May 20.-The executive committees Of
the savings bank and the trust company
sections OF the American Bankers Asso-
citation at meetings held here to-day
voted unanimously to indorse and sup
port the so called Warf1eld plan for the
| return and regulation of the railroads.
This plan was-p put forward by the Ma
tionAl Association of Owners OF Rail-
road Securities, which is headed by s.
Davies Warfield. The resolution adopt
ed by the savings bank section follows |:
Resolved that the executive commit
| tee OF the savings bank section, through
the committee on investments, Is COM
mitted to the study of the railroad situa-
| ton and holds itself in readiness at all
times to support plan for the return Of
the railroads to private ownership.
I'VE are in favor OF such legislation
by Congress "a will insure under all con-
ditions a hxe6 percentage return on the
| investment in th railroads through the
adjustment OF rates, as provided in the
SO called WafHeld plan for the return
and regulation of the railroads, which
has the full support of that most dis
tinguished statesman. the Hon. Elihu
Root, as fundamentally the most sound
plan proposed and which has been laid
before Congress by the National Asso-
citation Of Owners Of Railroad Securi-
ties, representing in actual membership
one-hslf OF the ST. 900, 900, 900 outstand-
ing securities OF the railroads"
The executive committee of the trust
company section adopted the following
resolution:
Whereas 1t is vital to the financial
and business interests OF the country
that the return of the railroads to pri-
vate operation and ownership be ac-
complished under regulatory measures
that will insure such protection to their
credit and securities as will secure the
funds essential to adequate railway SER
vice in the public interest; plan for
such return and regulation of tho rail-
roads has been submitted in statements
made by S. Davies warfield, president,
acting on behalf of the National Associa-
ton OF Owners of Railroad Securities
at hearings accorded by the Senate
Committee on Interstate Commerce OF
the United States Senate:
RESOLVED, That the executive COM
mittee of the trust company section,
American Bankers Association, approves
the fundamental provisions of the War
field plan. especially in respect to the
definite rule for rate making, the re-
suit Of which is to establish fixed
percentage to return to the railroads
the excess earnings above such return to
be used In the public interest as pro-
posed in the plan
Should Lay Sure Foundation Now.
Thomas De Witt Cuyler. chairman Of
the Association OF Railway Executives
in commenting on the Presidents state
ment to Congress that the railroads
would be returned to their owners at the
end OF this year, said
1T is to be assumed of course that
the President believes that Congress will
be able to frame in the next seven
months the legislation that it will be
necessary to enact before the Govern
ment returns the roads to their owners.
The members of the Senate and House
who have this legislation in charge are
apparently hopeful that, with the I'M
mistakable general agreement over the
country as to the basic principles of
necessary railroad legislation, a nom
partison bill embodylng these principles
can be placed in the Presidents hands
for his signature within the next few
months.
''To return the railroads TO their own
ers under the old system of regulation, q
system that had failed, would invite dis
aster, As Senator Cummins has so we'll
expressed 1t. this is the psychological
time to correct the evils in our pre-war
system of railroad control.
The problem OF putting our trans
portation system on a sound basis for
the future is not nearly 80 complex as 1t
seemed two or three years ago. The pub
lie demands, first, adequate, efficient,
safe transportation, economically pro-
duced second, new railroad facilities
and improvements to meet the needs or
a growing country without wasteful or
unnecessary construction; third. fair
wages and working conditions for en-
ployees, with insurance against a paraly-
sis of the railroads by strikes.
"In order that these public needs may
be met by the railroads when they are
returned to private management certain
things are indispensable. First, a cou-
tinuous Investment OF new capital for
additions and betterments from $780,
600, 900 to 81, 900, 000, 900 a year; second.
rates for carrying freight and passen-
gers that will pay for the labor and ma
terlal consumed in operation and that
will provide a fair return on the value
of the property devoted TO the public
use-that is, an income on the capital
that will attract the necessary new capl-
tai; third, responsible regulation by the
National Government that will protect
the interests alike OF the owners, the
workers and the general public.
"The legislation to make these things
possible and to insure the future growth
OF our transportation facilities does not
have to be very complicated. ON most
OF the principles involved there Is a gen.
eral understanding and agreement over
the country. and the honest differences
of opinion are mainly as to details. But
this certainly is the time to lay a sure
foundation for the future and to perform
the same public service for our trans
portation system as was performed seven
years ago by Congress for the banking
system"