The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-15
SENATORS PREPARE
FOR RAIL CONTEST
Long and Bitter Controversy
Probable When Peace Treaty
Is Out of Way.
LENROOT DISCUSSES PLAN
Wisconsin Man Says Bill is a
Compromise Between Plumb
and Cummins Ideas.
specia, p.spa,ch to TIE SUI.

WASHINGTON, Sept. 1.-THE lines are
being laid for the legislative contest over
the railroad organization legislation. al
though 1t will not open for its main en-
gasement for probably two months yet
1t is recognized that the Senate will
be the scene of long and bitter con-
troversy. 1t will take up the railroad
measures as soon as possible after the
peace treaty is out of the way, ana the
long drawn fights of other years when
railroad legislation has been on the
boards will be repeated. There is little
expectation that a law will be passed
before late next spring.
Senator Lenroot (Wis.) to-day issued
a statement which places him among
the sharp critics of both the Sims and the
Cummins measures. Mr.. Lenroot has in
troduced a bill which is intended really
to supplement the plan of the Esch-
Pomerene measure by adding plan for
permanent settlement of the railroad
question.
The Sims measure, most nearly In line
with the Plumb plan. should be charac-
terized, Senator Lenroot said to-day, "as
n bill further to increase the cost OF
living" That this measure will be at
tackled by all moderate and conservative
interests concerned with the determine
ton OF railroad policy is accepted as
certain. Nevertheless, IL Is expected to
muster considerable support and assume
a large political Significance. Radical
elements. especially important segments
Of labor, are disposed TO view it with
favor because of its resemblance to the
Plumb programme and the intimacy be-
tween its author, Representative Sims
(Tenn.) and the President has led to an
impression that the Administration may
finally be found friendly to something
like this bill, with a view to lining up
the labor elements for the next national
campaign.
Cummins Bill AssaiIed.
While the Sims measure is under at
tack because of its relationship to the
Plumb plan, the Cummins bill Is being
essailed by radicals because of its anti
strike provisions. These are bringing
down the maledictions of the railroad
employees, who, along with other or
ganized labor. consider that the enact
ment of such a measure would establish
a precedent which would drive organized
labor into extreme measures Of opposi-
ton.
NSenator La Toilette (wis.). who is
eminent ownership Of the railroads. has
not outlined his plan yet. but is known
to have done a vast amount Of work pre-
lminary to its preparation and to have
assistants working with him on a sur
vey of the whole field in this country
and abroad with view to supporting
his claim that immediate Government
ownership is the one solution that will
be permanent
f. a.,
pending proposals tb-day in a statement
issued by the Citizens National Railroads
League. He said:
mo comparison can be made between
the Plumb plan and the bill introduced
by myself. which was drafted in COL
liberation with Nathan L. Amster,
railroad reorganizer. and myself after
months of careful study. The Plumb
plan provides for operation OF our rail-
roads primarily In the interest of the
employees, while my bill provides for
operation in the interest of the public,
with absolute security for the investor
and fair deal to employees.
'The Plumb plan also provides for the
creation Of a board empowered to direct
the Government of the United States
to build railroads wherever the board
may deem 1t advisable. and the public
treasury must supply all the money the
board may demand.
Must Encourage Efficiency.
"One of the absolutely essential pro-
visions in any legislation calculated to
solve the railroad problem permanently
must be encouragement of efficiency In
operation. In my opinion the Cummins
bill fails to do this. The Cummins
plan is to have the Government take
away everything In excess of what the
rate making authority determines Is a
fair return, and thus there is no in
centive to efficiency after a fair return
Is made.
Moreover, the Cummins bill provides
that so per cent of the excess is to be
used for the benefit of employees. Only
small part il any OF this will be paid
to employees and they would not under
such an arrangement have the same in
centive as If their share were paid d.
rectly to them. Security owners would
not be benefited by the plan, but would
be injured. The Cummins bill provides
for fair return of the value of a group
of roads as a whole and anything re-
ceived by particular road in excess of
that fair return is to be taken away.
Senator Cummins has stated on the floor
OF the Senate that this plan would pro-
vide an inadequate income for some
roads and would drive them into bank.
ruptcy.
Rate Question Pulling.
''Then there is the question Of rates.
We cannot have reasonable rates with