The sun., 1919-07-18
Even shippers Admit Need.

"Can any economies be enectedF MT.
Montague asked.
some might be, but they would fall
far short of overcoming the deficit" MIR.
Clark replied.
Therefore, inevitably there must be a
raising Of rates ?" Mr.. Montague asked.
Yes" said the Commissioner. Even
representatives Of shippers have said
they realized II was inevitable"
Prewar intrastate rates would be au-
tomatically reinstated X the roads were
returned to their owners without some
declaration by Congress as to the rate
situation, Mr.. Clark said. They would
then have to be adjusted by State CONF
missions. He suggested 1t would be de-
sirable to have the intrastate rates OF
the Government remain in force for a
fixed period to allow time for the ad-
justments.
Mr.. Clark said that interstate rates
would remain in force without addi-
tional legislation unti1 they were
changed by the I. c. G.
Government deficit during the war
should be charged up as a war expense
and no effort should be made to have
the roads repay the operating deficit
Mr.. Clarke insisted. The transition
period now in progress will be a very
critical one for the railroads. and HI
recommended that Government aid be
extended in the form of Treasury loans
at a lower rate of interest than can be
obtained on the market
with high operating costs certain to
| continue and no prospect of reducing
wages soon the railroads in my opinion
must have cheaper credits to bridge over
the gap" Mr.. Clark said. IT think eff
Gent and sufficient transportation
agencies are essential and the Govern
| ment must see that they are provided
for. Rates cannot be increased beyond
certain limits without greatly hamper
ing business, and 1t seems to me. with
| another increase expected, we will be
nearing that limit, but you have either
got to make the lines self-supporting OF
pay the deficit from the United States
Treasury"
Commissioner Clark then began a dis
| cussion of the various plans proposed
after the lines are returned to theii
owners
AS to dividing the country into re.
gions and having regional commission.
ers. Mr.. Clark said, he did not see
how such a plan could be established
without disrupting transportation sys.
TENS that extend to the Pacific coas
from Chicago for instance.
Mr.. Clark opposed the plan of a sec
| rotary for transportation as a member
| of the Cabinet
II do not see how an individual hai
| a better view than a tribunal thai
| changes gradually and by degrees, ant
It is most important that the regula
ton of the lines be kept up separate
from partisan and political influences,
he said. THE proposal that the com
| mission shall initiate all rates Is i'm
possible. 1t would be physica
impossibility unless the rate structur,
| were rigid and changes in traffic con
ditions were infrequent. We think 4
Is in the interest of the railroads ant
| the shipping public that the initiation
| of rates shall remain with the carrier,
| subject to suspension by the commits
| sion"
The Commissioner said he did not be
lieve It would be q sound policy for tn,
| I. c. C. 10 be vested with power to n,
wages. He urged that the adjustment
OF wages be left to arbitration as pre-
scribed in the arbitration acts.
AS to guaranteeing to carriers certain
earnings, Commissioner Clark said, /
Is generally believed that such a plaI
would take away the incentive for eco
nomlcal and efficient operation Of tn,
railroads He also pointed out that tn,
public would not be protected asains
| improvident or extravagant expendi
| lures OF money on the part OF the car
| riers II II appeared that the level O.
rates would produce more in a giver
period than the percentage allotted t.
any carrier. frustrating traffic, h,
added. would affect the return guaran
teed by the Government