The sun., 1919-10-15
WANT LINES PUT ON
PAYING BASE BY U. S.
Road Heads Say Government
Should Restore Relation
Of Income and Costs.
SEND HINES, RESOLUTION
Declare Obligation Is Up to
the Administration Which
Cut Earning Power.

That the obligation for once more
placing the railroads Of the nation on
paying basis rests with the Railroad Ad-
mlnistration and not with the roads
themselves is the sense of the Associa-
ton Of Railway Executives as expressed
In resolution adopted at its Mondays
meeting and made public yesterday. The
association feels and makes plain in the
resolution, a copy of which has been
transmitted to Director-General Walker
d. Hines, that inasmuch as the earning
power of railroads was materially cut
down through the action of the admin
istration In increasing operating costs.
1t is up to the administration to re-
store the relationship between revenues
and expenses"
That resolution was adopted by the
az ISOLATION and Its steering and standing
committees following lengthy confer
! ences. Director-General Hines. in q
letter which he addressed last week to
T. De Witt Cuyler. informed the railroad
executives that the administration had
determined TO make no increase In rates
at this time and suggested that indi-
vidual roads take necessary steps to
place befoye the Interstate Commerce
| Commission applications for an increase
| in rates In anticipation OF return OF
roads to their owners within the next
| few months. The railway men. however,
| declare that the cause of the declining
| income was the readiness of the admin
| istration to increase expenses without
| increasing revenues in the same pro
portion, and they insist that the admin
| istration, and not they. should be the In
| stigator OF the remedy, which must take
| the shape of an advance of rail rates all
| around.
Mr.. Cuyler will name a committee of
| members of the association to confer
with Director-General Hines at any
time that he shall appoint. according to
| the letter which he sent to the Director
General.
81 duly received your letter of October
T." that communication reads" con-
frmins our conversation in reference
to the increase In railroad rates, and
submitted the same to-day to meetings
of the steering committee, the standing
committee and the full membership
roads. all Of which were fully at
| tended. The committee came ia
the conclusion unanimously that
they did not see their way clear
to accept your suggestion of an APP
plication by the roads to the Interstate
Commerce Commission for an increase
in rates before further conference with
you on the subject A very strong feel
ing was developed that 1t was the duty
Of the Government, In view of all the
| circumstances, to make an Increase OF
their own volition. I enclose you here
| with copy Of the resolution that was
adopted by both the steering and stand
ing committees and the general member
| ship Under the terms of the resolution
| propose to appoint committee 70
| confer with you and I shall be glad II
you will advise me when you can con-
veniently see the committee at as early
a late ss possible"
The resolution adopted by the COM
uittees and the association membership
reads as follows: Resolved that the As
| sociation Of Railway Executives respect
| fully insists that the duty rests upon the
| Government to restore, on it's own mi
| tiative and by its own action, the rela-
| tionship between revenues and expenses
which the Governments action, in in
| creasing expenses, has disturbed and
| that appropriate action In this direc-
] ton is necessary in order to be in con-
| formity with the statement of the Presi-
dent, when the railroads were taken
| over by the Government, that investors
/ in railroad securities might rest assured
| that their rights and interests would
| be as scrupulously looked after by the
| Government as they could be by the
| directors OF the several railway systems |;
That a committee be appointed by
| the chairman, of which he shall be
| chairman. to take such action as It may
consider appropriate to secure a recon-
| sideration of the conclusion of the d.
| rector General. as stated in the letter
above referred to. and to take such other
| action as they may deem necessary to
protect the interests OF the railroads In
regard to rates to be effective after he
I end Of Federal conrol."