The Barre daily times. (Barre, Vt.) 1897-1959, 1919-03-13
RAILROAD PROBLEM
BECOMES HERITAGE
OF NEXT CONGRESS
Advocates of Various Plans Have Al
ready Begun Their Propaganda and
Are Prepared to Urge Con-
sideration.

Washington, D. c.. March l2.-Ad-
journment of Congress without legisla-
tion providing solution of the railroad
problem leaves this question as one Of
the principal heritages of the next Con-
gress. Advocates of various plans al
ready have begun to promote propaganda
for their respective theories, and are pre-
pared to urge Congress to take up con-
sidcration early in the next session.
AT that time, testimony taken before
the Senate interstate commerce commit
tee of the present Congress will be avail
able. The new group of legislators will
be confronted with recommendations of
seven groups of interests. These are.
The railroad administration, railroad ex-
ecutives, railway labor, railroad security
owners, interstate commerce commission,
shippers and state commissions.
The railroad administration indorse-
ment of tive-year extension of federal
management was opposed by all other
interests, except that the labor groups
opposition was qualified, All interests
except the railroad administration and
railway labor advocated return to pri-
vate management as soon as Congress
has enacted legislation permitting a
larger measure of unified operation and
Of stricter government control. The la
Dor forces proposed government owner
ship with private management.
The varied views may be summarized
as follows:
Railroad administration-For fve.year
extension of government control with
alternative of early return of the roads
to private management. Former Direc-
tor General McAdoo regarded the five
years as a period to test all theories
his successor, Walker d. Hines, regarded
it as an interim course, rather than a
test, to give Congress time to work out
a permanent solution Mr.. McAdoo pre-
scented no permanent solution; Mr.. Hines
proposed eventual private management,
with mergers of the numerous roads into
six or more regional companies, with
more uniform financial strength, the gov
eminent represented on the boards of di-
rectors, profits to be shared with the
government and perhaps employees, and
the roads assured adequate return on in.
yestments.
Interstate commerce commissioner
private operation, with privileges of pool
ing equipment and facilities, cooperating
in operating plans, mergers within limits,
government regulation of securities is
sues, Qualification of the twilight zone
between state and federal authority,
complete mergers in time of war or
emergency, regulation of construction,
and development and coordination of in
land waterways with rail lines. All this
would be under the regulation of gov
eminent agency, presumably the inter
state commerce commission.
Railroad executives-For creation of a
secretary Of transportation to supervise
all rate and operating matters, including
mergers, pooling and cooperation, with
interstate commerce commission the SUI
preme court of review on rate questions,
and regional commissions to assist; legal
assurance of adequate rates, rates to be
initiated by companies; federal incor-
poration; opposed to return to roads to
private management without legislation
to provide these reforms, and against
tive-year extension of federal control.
Railroad security Government
assurance of adequate return on invest
ments (6 per cent suggested), with ex-
cess earnings to be shared with employees
and used for property improvements;
supervision of rates of interstate com
merce commission, with regional com
missions; return to private control to be
directed by an association governed by
the nine interstate commerce commits
sioners and eight railroad executives;
against federal Incorporation, or extern
sion OF control, and against turning the
roads back Immediately.
Railway labor-For government own
ership of properties, and private opera
ton by single corporation directed
jointly by representatives of employees.
appointed officers and the government:
earnings above a sum sufficient to paw
costs of capital to be divided between
the government employees. Against five
year extension, but in favor of longer
period than 81 months; against turning
back roads Immediately. For strict SUI
pervision by interstate commerce COM
mission.
Shippers-For private management.
aud a large measure of competition, with
authority for pooling equipment, com
mon use of terminals early restoration
Of state ratemaking powers, and au-
thority of interstate commerce commits
sion to suspend rates initiated by the
railroad administration. Against fed
era Incorporation, creation Of secre-
tary OF transportation and government
ownership.
State commissiOns-Bo most features
Of the interstate commerce commission
plan, with adjustment of relationships
between federal and state authorities;