Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-03-27
--"hTc7 CUMMING OUTLINES
g.s PLANS FOR FEDERAL
coNTRcL o. LINES.
SPEARS AT JOINT
LEGISLATIVE SESSION
Senator Says Weaker Railroads MUST
&c Absorbed to Preserve Them From
Ruinous Competition--Pavors Fed
eraI Control Of All Systems Under
Private Operation.

Des Moines, March 27.-Problcms OF
railroad REIMBURSEMENT were explained
10 n Joint session of the Iowa lesisla-
! turc this afternoon by Albert b. Cum
minis. Iowa's senior United states SEN
atcr, who presented his previously an
nonnccd series OF principles for any
! fundamental railroad legislation. as
| follows
Frst-Thc return upon the capital
! invested in railways should be made
I certain thru a government undertake
| Ing.
Second-The railways should be
| con solidated into comparatively few
! systems. not more than eighteen.
! Third--The railways should be opcr-
| ated by private corporations organ
Fixed uudnr an act OF congTcsG.
| Mr.. Cummins declared that barring
! possibly the proposed league OF ma
! tiuns. the ''readjustment Of the rela-
tons between the government and the
railroads is by far the most important
+ and most difficult of the many PROB
I lens Of reconstruction which the war
/ has bcquccthed to the United states.
We ought to bear constantly in
mind" he continued, these two re-
auisltcs as the basis of all our efforts
| tow ard res j'at,on and control: First,
! nde uacy Of faCilitiCr; second cost OF
mar. errucc and operation. The COST
Dr. IF transportation Is composed Of just
two itcms--the charge for capital, and
( nc charge for maintenance and oper-
. "tion.
/ "Is VIC are to serve successfully the
! -o1oral welfare our labors must be
/ directed toward reducing. if we can.
! to c>2r~e for capital. and toward Sc
curing the utmost efficiency and econ
( 2luv in maintaining and operating the
railway properties compatible with
fair compensation TO those whose
minds and hands are engaged in rem
dcrjng the service we require.
! IN order that there may be no mis-
| understanding as to my attitude, ! de-
| sire TO say in the beginning that l look
| upon transportation by railway as
! governmental function. ! believe it is
| just as much the duty of the govern
ment to provide the people with AIDE
!
| as it is to provide them with adequate
! highways, adequate water supply, ade-
| quate courts of justice, or adequate
| police protection.
| whether the government can pe-x
! perform this function thru the gov.
| eminent and ownership and operation
| Of railroads. or thru the instrumental
ties OF private corporations under pub
lie control is entirely a matter Of
sound judgment and wise discretion.
! The object which congress must
! constantly bear in mind is the neces-
sity for transportation. and the right
4 of the people to have it upon reason
able terms"
| v. S. Leads in Mileage.
Senator Cummins then pointed out
that this country has 100000 miles Of
single track. railway, more than one
| third nearly one half of all the pail-
ways Of the world. These railways
carry yearly traffic so much greater
than that of any other country that
| there is really no basis for COM
parison,'' he said.
The speaker cited figures on the net
earnings Of various Glass /" railroads
in the country during certain pre-
war period, showing range of returns
| from more than 10 per cent upon the
| investment account, loss in opera
| ton. stating the figures ito fasten upon
your minds the disparity in the earn
| ing capacity of the various railroads
of the country"
1T is, of course. we'll known that a
very large proportion Of the railroad
rates." he continued, land no matter
what the necessities Of particular
railroad may be 1t must do business
upon the rates that prevail among it's
competitors
Competitive Rates Ruinous.
He cited the instance Of the Chicago
&. Northwestern and the Chicago Great
Western railroads to illustrate his
point, declaring that these wholly
competitive roads, in the period he
had referred to, made; Chicago &
/ Northwestern, 6.13 per cent upon it's
| property Investment account, and the
chicago Great Western. III per cent.
This condition, he pointed out, existed
turnout the country, and made neces-
sary guarantee by the government Of
the return upon the capital invested
adding:
Return upon the capital invested
| should be made certain by a govern
ment undertaking because 1t Is high
ly desirable to remove for all time the
demoralizing, corrupting struggle be-
tween the owners and representatives
Of railway property and the public es-
pecially that part Of the public direc-
ly interested in freight and passenger
charges, ard the honest Investment in
railway properties Is entitled to pro-
lection, and the public is entitled to
fair treatment. It is impossible to con-
ceive of any revision OF the law that
will accomplish these things without
the elimination of the controversy re-
lating to the return upon capital"
/ Consolidation Imperative.
Referring to his second principle. for
consolidation of railroads into COM
paratively few systems, he said:
1T Is utterly impossible to maintain
an efficient system Of transportation
with reasonable rates for service un-
less this be accomplished. If the
weaker roads are made self-sustain-
ing thru Increased rates so they car
continue to serve the communities
thru which .hey pass, the stronger
roads will enjoy revenue so excess
lively large that the people as whole
will be compelled to pay Unfortunately
for their transportation. The weaker
roads must be merged with the strong
er ones into competitive systems which
can endure upon substantially ever
terms. ti
N"I am not In favor OF regional sys-