The sun., 1919-10-19
OUTLINES PLAN FOR
RETURN OF ROADS
Thomas De Witt Cuyler
Speaks in Behalf Of Rail
way Executives.
RATE MAKING DISCUSSED
Plumb Plan characterized
Public Ownership in the
Worst Form.
RATE MAKING DISCUSSED

PHILADELPHIA, Oct. 1S.--PlanS OF ram
way heads for the return Of their lines to
pricate ownership were discussed tonight
by Thomas Do witt Cuyier before the
American Academy Of Political and
Social Science. The chairman of the
Association OF Railway Executives said
in part:
when the roads passed under Gov
ernment control on January ]. 1918, the
general assumption was that the great
issue at this time would be az to whether
they would remain permanently under
the control OF the Government through
public ownership or whether they should
under proper regulations return 70 their
owners. For reasons that need not be
entered into now. that Ii not now an
issue.
Overwhelming public sentiment de-
mands that they shall be returned TO
their owners, and the only issue Is under
what plan that return shall be made. A
census Of the rress OF the country has
recently been taken by the Association
Of Railway Executives. of which 1 am
chairman. and SO per cent. OF the 6.ooo
stated that the public sentiment in their
communities is opposed to Government
ownership and in favor OF the return OF
the roads to their owners.
1.-THE plan submitted by cur Associa-
ton proceeds on the American principle
that private initiative and enterprise
must be preserved and that fair return
must be made to those VINO own .ne
properties. We have In our plan pro-
vided for what 10 known as transporta-
ton board, the object being to obtain
men of the very highest character ana
ability for this important position.
To Certify Needs.
cit shall be their duty to keep them
selves informed Of the transportation
needs and facilities Of the country ana
from time to time certify to the Inter.
state Commerce Commission the amount
of earnings necessary to enable the roads
to provide adequate facilities to maintain
their properties, to meet their operating
expenses, their dividends and the inter-
est on their Indebtedness, and sufiiciens
to- attract new capital for the future
needs Of the railroads.
This in a fixed statutory rule OF rate
making, binding alike on theTransporta-
| ton Board and the Interstate Commerce
| Commission. 1t has been said by Inter
| state Commissioner Clark that this rule
| has been practically followed by the
with him In this statement. II cannot
| be tho case. because as the public well
knows, many OF the roads have been
| hampered almost to the verge OF bank
ruptcy by lack OF adequate rates, and
railroad credit has reached its lowest
ebb."
OF the minimum rate suggestions, Mr.
Cuyler remarked that such u, programme
| would "be accompanied by maximum
4 AL he fNN
| and prosperous roads for the benefit Of
weaker roads. or In other words, estab-
fish a statutory rule that the property of
| one shall be confscated for the benefit Of
| another.
I'VE believe this not only TO be I'M
sound economically, but absolutely ille-
gal. and we are justified n this belief by
| the opinion of our counsel and Judge
Hughes. who has recently rendered an
| opinion on the subject.
| The Interstate Commerce Commission
under our plan is charged with the duty
Of carrying out the rate policies as deter
| mined by the Board OF Transportation
| and to perform all the other duties that
| are now vested in them. In order that the
rate making may be intelligently acted
| on by the Board Of Transportation. the
country is divided into regions. with re-
gional boards whose duty In the first in
| stance shall be to advise the Board of
| Transportation OF the needs and necessi-
ties of their particular sections.
| at Is provided that the roads In times
OF emergency, as during the Federal con-
troll, shall have a right to pool their
traffic. have joint terminal facilities for
freight and passenger service, and In
other words to give a law that, while
providing for a proper and watchful
Federal control OF the roads for the
protection OF the public, will give such
latitude to the roads as will enable them
| to meet the requirements of our coun-
| try"
Opposes Plumb Plan.
OF the Plumb plan Mr.. Cuyler said
"This in effect is public ownership
and, in my judgment. of the very worst
OF the country shall be bought by the
public and operated by a board under
Government control in which labor
would have so predominant q control as
| to practically make railroad labor the
real owners of the roads In other Words
II IL proposed that the rest of the people
shall contribute to the support OF some
1000. 900 OF railroad employees very
small minority of the people of the coun-
try. The labor leaders have frankly
stated that the first consideration would
be the wage of the employee. irrespective
of the general conditions of the country
or the wage paid labor in other occupa-
TONS OF course. working rules would
be adopted, many of them of a most
onerous kind.
There would be but one end to such
a plan. Sooner or later an indignant
public would demand private ownership,
as they are demanding It now. but mean
while the country would have received q
most expensive and appalling object les