The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-08-25
PLAN FOR RETURN
OF THE RAILROADS

Washington, Aug. 23.-Proposals of
the Association of Railway Executives
fer return of the railroads to private
operation under conditions that will
insure adequate revenues and maximum
service to the public were laid before
foreign commerce yesterday by Thomas
N. Dewitt Cuyler. chairman Of the AZ
ISOLATION,
Congress, under the plan. would d.
rect the interstate commerce commits
sion ito approve rates which will ena-
bic the railroads to be self-sustaining, -
the rate-regulating authority to be
vested exclusively in the Central Com
mission and regional subcommissiona.
There would be no guarantee OF in-
come OF dividends by the government.
Broad regulatory powers would be
vested in federal transportatio,
board to be established as n co-or-
dinate body with the Interstate Com
merce commission. This board. to
be composed of three commissioners
appointed by the president would be
charged with general OVERSIGHT OF
Transportation from the poinvof view
Of the public interest. II wiuld ralievs
the Interstate Commerce Commission
Of all functions except rate reguia-
tioI. valuation. and accounting.
In regulating rates the commission
would act upon certifcation by the
board from time to time Of the amount
of revenue needed by railroad to
pay operating expenses and q fair
heturn' on the value OF its properties
and maintain credit sufficient to at
tract new capital necessary for tho
expansion OF facilities. It wac be-
lleved. Mr.. Cuyler said. the railroads
should have from s70o.o00.oo0 to ST.
,o6o,ooo.ooo of new capital annually for
expansion of facilities to meet the
growth Of population and industry.
The proposed board also would have
authority to distribute traffic when
necessary to relieve congestion on
certain lines, to require the use OF
joint terminals when In the public
interest, and. In times Of national
emergency. to consolidate all lines
into . united system. It also WAS rec
commended that congress authorize the
consolidation Of existing lines into
strong competitive systsms when
con3idered to be IN the public interest
The association recommended. Mr..
Cuyler said. great unihcAtion OF pub.
lie regulation Of the railroads ~
broadening nationtl control. 1t be-
lleves. he said. there should be ex-
elusive nAtionak control OF the issue Of
securities and the expenditure OF nav
porAtton Of interstate carriers also was
advocated.
4 TO avoid the risk Of financial dis
aster.'' upon return Of the roads 70
private operation, Mr. Cuyler said the
railway executives belisTed 1t neess-
sary that the guaranteed standAed re-
turn from tho government b con-
tinued until It was possible TO restore
the equilibrium between revenues and
sxpenses., and make the carriers again
self-supporting. 1t was proposed that
this re-adjustment Of rates be under
taken by the Interstate Commerce
In consultation with the
Director General Of Railroada. and the
proposed federal transportation board.
ny way Of further financial relief
for the roads upon resumption OF pft.
vatA operation It was advocated that
thair Indebtedness to tho government
on accent Of capital expenditures
made during the period Of government
control be funded.
In concluding his statement. Mr.
Cuyler attacked the Plumb plan tor
REPRESENTATION OF the railroads. de-
ciAring It was 30 radical that whom
understood It never would b approved
~ the country. ssaN