The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1919-06-16
Congress Determined 10 Make
Certain Future Growth Of
Transportation Facilities.
PLANS AGREE ON PRINCIPLES,
Return Of Roads 10 Owners With
Assurance Of Adequate
Revenues.

ting the railroads back on peace
basis 1hois .Ul0n miles of steel
highways vef, taken over hy thc UU,,
cFnmeu, a. an indispensable am u
the nsllonal dcffhss bat nov that
heir var service ~ over. there II =
couniry-wids demand that he Cov.
enmcnt restore them 10 their owners
to be operated on normal American
business standards II ofhsens,
nui, a. has been pointed out by
President Wilson ~ well 80 bS many
mcn IA ruhic uie Who have ei,ea
ihis subject YEARS - careful study.
u Ia not cnoueh slmrly 10 say 10 the
railroad compnnles. TAKE lhsso rail
road, and klNc tho country the best
transportation scrvice that laoncy and
brains enn provide
Old lava obstrict Growth.
The President rc~'ntly naid TIM, "
would be serious mlstakc a. riufn
10 the uld condll.ona of rallroad ngu.
lalion without reforming the anti
aualcd LAWS flul wsre "bslrneilpg he
f,ee desci0putent of transportation "a
cilitieA 1le Director oenernl ~ Raii.
anad. has rcrpntly made 40 Inspection
trip FROM coast 20 c"nst. and De hAn
been telling the people that the tine
has now come 10 put the railroads On
sound foundation
The plans for better system ~
national control ~ railroads are ~
varlsd ~ were the plans Tor hnpkiDg
and currency fefaf0 when eaRrvHn
received a mandate from thr truIdo
10 provide Insurance against nnancnl
nancs The public NOW demands ~.
sarauee agans, breakdown ~ rail.
road transportation, uud the new Con
grcss IN undertaking this WORK ns roer
uudnfy only 10 Insurance agalnss ~
ternutiunAl warfare Congress solved
the banking problem aeyen years agp
ns a non'paf.isan ISSUE. n which ais
The people had a common Interest, aud
Congress evidently is tachllng IN"
railroad problem with thu aame spirit
l. While the many p,nn@ ihat have
been proposed dlifcr Ia the methods
70 be adopted IN reaching the desired
goal Il has been pointed nut by Scna
tor cummlns Of Iowa TINT all these
plans have really very much ~ com
mon 80 much so that he Ia confident
thA, Congress will lave little dlfliculiy
IA framing bin that VIII meet with
popular approval. and that will ink"
the railroad question out of politics
for many years 20 come
Many Plans Win One Aim.
The Iowa senator has a command.
Ing position la thls Congress becnsise 10
~ the ranking member of the Interstate
/ Commerce Committee ~ the United
states senate. nnd II II IN thia com.
mittre that thu nav railroad hill viii
take fln.i form In an address before
national meeting ~ business men
I ~ a.. Louis Senator Gutnmins stated
I that since the ciuse Of the war fully
4 thirty complete plans far new railroad
/ tcgislatinn had been aubnltEast 10 him
hs business muit. ecoroml1s. bAllLafs.
railroad officials aud owners, Govern.
I AfNA NHAfMfNs tN'MWAA WINNIE Rftst
juss plain citizens,
The baslc principles upon Witch aii
Of these plans, with one exception,
agree are as follows.
7. Private operaton IN more esfl. Z
cient and more ecouoricaf than
Government operation. and the
| public interest will thsvefose be
ssryed BY rst,Sn OF the roada 10
private management
z. To make certain that new
capital will be attracted 20 the
expansion OF railroad facilities.
there ought to be greater certain.
~ that fair return will be earn
ed on the investment.
;. The merging Of weak and
strono reads into large competing
systsms should be encouraged.
The making OF n formula TO pro-
vide fair return on railroad capital
seems likely 10 be the phase Of the
problem most thoroughly debated in
Congress. The Director Gensrnl haa
been urging that The Government
ought 10 guarantee certain return
and share Ia any excess earnings.
Leading bankers. especially some II
the international BANKERS IA Wall
street, who have Ia the past marketed
many hundreds ~ millions OF railroad
securities. also look fayorabiy on the
suggestion of Government euarai-
tee. which viii make II easter 10 ssil
new securities. aud VIII aiso stabilize
the market for the old bonds and
stocks.
Government Guarantee Opposed.
But the proposal that the Govern.
menf shall guarantee the interest and
dividends ca private capital invested
in railroads viii undoubtedly mse,
With very vigorous opposition In many
quarters. Even railroad executives.
who might be supposed 10 take kindly
10 the idea of Government guarantees
against failure. have frankly star-f
that they do not want II, because they
believe IL Is un-AmerlcHn IN principle.
would tend to lessen efficiency. and
would involve the roads In Govern.
menf partnership that would inssIfa-
big lead to Government ownership.