The Birmingham age-herald., 1919-01-08
By Associated Press


 Washington, January z Railroad executives have de- cided to recommend to Con- gress a system of unified pri- vate management of rail lines with strong public control eX- ercised by a secretary of trans portation in the Presidents cabinet, and a reorganized in terstate commerce commission, with regional divisions acting as a court of last resort in rate disputes.
 This became known here today CO., incident with the disclosure of the in- terstate commerce commissions atti- tude that railroads should be returned to private management within 'reas- enable period" to allow for preparations and readjustments. and under "broad- ened, extended and amplified govern- mental regulation"
 The commissions announcement was made by Commissioner Edgar F. Clark, testifying at the Senate interstate commerce committees hearing on pro- posed railroad Legislation, to which the railway executives proposed plan will be presented tomorrow or Thursday. The commission opposed indefinite cou- tinuance of government ownership or operation of railroads at this time and outlined comprehensive plan for leg islation which would permit elimina- tion of unnecessary competition, pool irg of facilities, government prescrip- tfon of maximum and minimum rates and standards of service, government direction of railroad extensions and financing. and direct cooperation be- tween federal and state regulatory bodies, Commissioner Woolley dissent- ed in part, advocating Director Gen. eral McAdoo's proposal that govern- ment control be extended for five years to provide a test period.
 FIRST ALTERNATIVES
 The interstate commerce commis- sions suggestions were the first al- ternatiyes to MT. McAdoo's extension plan so far received by the Senate com mittee. Most of the commissions sug- gestions are understood to be embodied in the railroad executives plan, which also proposes permanent retention of a greater part of the reforms effected by the railroad administration.
 The interstate commerce commits sions statement to the Senate commit tee referred repeatedly to federal body" to exercise public control over railroads. but did not specify whether this was to be the commission itselt or some other agency. The plan of tho railroad executives, on the other hand. proposes to give to the secretary of transportation broad powers to co-or- dinate and unify rail facilities when ! ever demanded by the public interest; to distribute over various lines for the purpose of relieving congestion and to require the joint use of terminals. TRANSFER FUNCTIONS l To coordinate the agencies of gov err n.ent control, the railroad executives | propose to transfer to the department | of transportation the executive and ad- ministrative functions now held by the interstate commerce commission. The co II mission would remain the court of 1 last resort as to reasonableness and 1 aceouacy of freight and passenger rates, but the responsibility for rate regulation would be divided between the secretary 1 of transportation. the commission and new regional commissions representing l Fl cups of states, reporting their find }ings to the commission at Washington.
 The proposal of the railroad leaders is that rates filed by them with the gov err ment shall be reviewed by the secre- ltary of transportation, who may approve | or disapprove them or refer them to the conimission, Any rates made the subject to complaint by the public could be l brought before the commission for re- l view regardless of the cabinet officer $
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