New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1919-01-31
PRIVATE OWNERSHIP
WITH IMPROVEMENTS
S. Davies Warfeld Asks Return Of
Railroads and New Legislation
INSURING FIXED RETURN

Representing 3O.00O.OOO Stockholders,
Speaker Outlines Constructive Pol
icy as Solution to Present Railroad
Tanglc,
Washington, Jan. Sis. Davies
Warfeld, president Of the National
Association of Owners of Railroad
Securities, gave the senate interstate
commerce committee the Sc
curity holders view of the
railroad problem. He urged
that the roads be returned to private
operation as early as practical bic with
legislation insuring a fixed return on
property Investments, saying the
results of federal control and opera
ton thus far obtained cannot give
comfort to advocates Of government
ownership"
Represents 3O,OOO,OOO People, |
Mr.. Warfield, who said he repre- |
sented 100000 600 persons owning or /!
interested in railroad securities, pro- !
posed a comprehensive plan for ad-
ministering railroads under govern
ment supervision, involving profit
sharing among employees: Gre
alton of a federal corporation to assist
in financing railroads and to SUPER
wise unification of facilities and re-
routing of traffic; arbitration Of labor
disputes; control of future security
issues by the Interstate commerce
commission and retention Of state
commissions. He opposed the plan
for creating q department of rail-
roads with a cabinet officer at it's
head.
Principal features of Mr.. WarfeId's
program follow:
Wants Congressional Guarantees,
Guarantee by act Of congress of q
minimum rate Of return on property
investment made effective through
proper rates, "in order that the secur-
ties of the railroads may be stabilized
and their credit esta blished on a bn-
sis necessary to secure the money to
provide to the shippers and the trav-
cling public adequate facilities and
service Establishment Of a fund,
administered by the interstate COM
merce commission, Of excess earnings
above the fixed rate of return, one
third of this to go to the railroad
company, ole-third to employees as
proflt-sharing, and one-third to q re-
serve account.
Creation Of Federal Board
Creation of a. federal corporation,
operating without profit to the rail-
roads with the nine interstate conf
merce commissioners and eight rail-
road men as trustees to finance pur-
chase of equipment from the railroad
administration, to assist in financing
the roads during the period of return
to private operation and to continue
as permanent means for mobilizing
and purchasing equipment to be leased
to railroads, to put into effect Joint
use of terminals. unification of faciIi-
ties re-routng of freight by pooling
or otherwise and to continue other
reforms found advisable during gov
ernmelt managem ent
Regulation of Rates.
Federal regulation of rates bv the
interstate commerce commission as
already established ordinating with
six regional commissions to be created
the interstate commerce commission
to be the final court of appeals on
rate matters.
Continuation of existing rate in
comes composed of railroad men and
shippers, to pass on rates proposed by
either railroads or shippers, before
these are submitted to the regional
issOnS.
State commissions to continue to
regulate intrastate rates but in prop
ef IGldIIOllS1ll) Win interstate rates
-moo 9lglsL9lU! 9ul 40 pd9!uuIolop
merce commission.
To Settle Wage Disputes.
Wage disputes to be cOnciliated if
possible by the regional commissions
or, failing in this, by arbitrators, with
appeal to the interstate te commerce
commission, FINDINGS not to be COM
pulsory unless mutually agreed before
hand" and future issues of securities
to be supervised by the regional COM
missions and the interstate commerce
Mr.. Wartield presented opinions
from q number of lawyers, including
Elihu Root, questioning the consti-
of a law requiring rail-
road companies to increase or oper-
ate under federal charters and for
bidding state corporations to do in
-erstate business. {
Prepare For Return of Roads. s
He declared that railroad security '
holders in the past had not been {
properly protected owing to develon- t
nent of a hostile state of mind, re-
sulting in too little constitution bv /
legislative bodies or the Interstate {
commission.