The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-21
MERCHANTS ASSN
ANALYZES R. R. BILL
Sends Recommendation Re-
garding Cummins Measure
to Congress.
FAvORS RAILWAY BOARD
Approves Refunding Capital
Expenditures While Under
Federal Control.

The attitude Of New York city BUSH
ness men toward the bill introduced In
Congress by Senator Cummins and de-
fning terms, under which railways shall
be returned to their owners. is reflected
In a declaration adopted by the Mer-
chants Association recommendations OF
its transportation committee. or which
c. S. Keene is chairman. The declara-
ton is being laid before Congress.
what Association Approves.
The association approves the follow
ing provisions of the bill: Returning the
roads to their owners. refunding capital
expenditures during Federal control and
five months Government guarantee OK
the compensation under existing con-
tracts; dividing the country into rate
districts, with adequate rates In every
district based on periodic valuation OF
the property consolidating the railways
into twenty to thirty separate sys-
terms, operated by separate corpora
lions; creating a railway Transports
tion board empowered to plan consolida-
financial condition of carriers, with Juris-
diction over procurement of new capital,
administration of specified laws relating
to physical condition OF carriers, rela-
tionships between land and water trans
portation routing of traffic and joint
use of terminals; allowing reincorpora-
ton OF railroads under Federal laws
with at least two directors from classl-
fed employees and two appointed by the
fran "a
The association also favors the follow
ing provisions:
Giving the Interstate Commerce Com
mission exclusive authority to regulate
stock and bond issues: creating COM
mittee on wages and working conditions
with equal representation of employers
and employees to decide complaints SUD-
ject to approval of the transportation
board providing that agreements be-
tween two or more persons to hinder.
restrain or prevent operation of railroads
be deemed conspiracy punishable by fine
or Imprisonment. providing that nothing
in the law shall deny the right of any in
dividual to quit his employ ment for any
reason; authorizing pooling agreements
as to freight and the transportation
board to require connections between
land and water carriers; extending the
car service act to expedite transporta-
ton; preventing construction of unnec-
essary transportation lines; authorizing
the Interstate Commerce Commission to
prescribe minimum and maximum rates :;
giving the commission power to enforce
just treatment of localities or persons
in rates and regulations, divide Joint
rates between carriers, establish through
routes and joint rates and suspend new
rates for not more than $50 days for
hearing and investigation,
Provisions Disapproved.
The association records its disapproval
Of the provision in section 6, that II the
transportation board decide that a road
receive in year more than a fair re-
turn on its property, the excess shall be
paid to the board, one-half to be placed
IN fund for the benefit of employees in
the form OF welfare work and profit
sharing, and the other half applied to
equipment for roads unable to keep up
facilities.
The association says that that provi-
sion would destroy the principal incen-
tive to efficient and economical manage
ment and betterments and tend to in
crease operating costs so as to absorb
excess earnings. The association ex-
presses the belief that It is desirable for
railroads to accumulate SURPRISES and
make betterments out of earnings when
ever possible without new capital
The association points out that the
capitalization of American railroads Is
exceedingly low in companion with CAPT
talization and capital stock of other
countries systems because improve
ments have been paid for out of surplus
earnings. To prevent this would increase
capital charges and impair efficiency.
The association expresses the BELLE
that TO deprive roads of all excess profit.
would be highly undesirable and thai
sufficient surplus funds should be lef
in the roads treasures to constitute
substantial incentive to good manage
ment.
The association opposes that portion
of Section 23 which declares that nothing
contained in the bill shall affect exist
ing State laws or powers relating L
taxation or police powers including
power to make and regulate Transports
ton rates except as otherwise provided
in the bill.
The association believes that Stat,
use of police powers results in multipl,
control. leading TO prolific evils and in
creasing operation cost and favors con
troll and regulation of interstate car
riers by sole Federal authority.
The association opposes the rigid Ions
and short haul rule provided for which
absolutely prohibits greater charge fo
the short haul than for the long hau
over the same line in the same dlrec
ton and favors the present law, which
gives the Interstate Commerce Commits
sion power to suspend that rule aftel
investigation, thus permitting a Ions
line to meet the competition Of a shor