The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-08-15
HELP
FOR RAILROADS
HELD ESSENTIAL
Relief Denied Many Roads by
Commission Declares For
ney Johnston.
(By Associated Press)


WASHINGTON, Aug 15.-If Con-
gress proposes to build a foundation
for American prosperity it must ex-
tend steadying hand to the railroads,
Forney Johnston of advisory counsel
for the national association of Owners
of Railroad securities, told the House
interstate commerce commission to-
day.
If congress does not take courage
GUS and constructive action now," said
Mr.. Johnston, appearing in behalf Of
the Warfleld six percent. return plan,
the progress Of a generation toward
we'll regulated system of privately
owned and operated railway transpor-
tation will be destroyed and the 66th
congress will have forced government
ownership under conditions and with
results which the future alone can
assay"
Mr.. Johnston contended the security
owners association had presented the
only process that would avoid this
fatal and irrevocable step"
Pointing out that in 1916 ninty-one
railroads, operating more than $4,000
miles had paid no dividends what
ever, he declared American railroads
had been kept in a breadline before
the door of the Interstate commerce
commission since 1910 and that relief
by the commission had been denied
or grudgingly and sparingly dealt out
because certain roads in each re-
gion were thought to be affluent.
"Yet before the committees of con-
gress and in every case brought be-
, fore the commission to advance rates."
| the witness said, "a vast mileage of
American railways has been choked
off with the assertion that average
! statistics show average prosperity. 1t
has been actuated to deny general re-
| lief because certain roads were pros
porous and the commission was un-
willing to add to their prosperity even
to save the large number of roads
which were receiving admittedly in
| adequate revenue"
1t was to meet this situation he told
the committee that the Warfield plan
| would direct the commission to fix
rates 80 that the roads could earn a
minimum guaranteed return of six per
cent upon capital invested, with di.
vision of all surplus over that figure
among employees, the public and the
ca arning road.
Urges WarfieId Plan
"The fundamental proposal of the
WarfieId plan," Mr.. Johnston declared
lis that this continual basis Of warfare
between the shipper and the railroa ds
the constant depressing factor against
relief before the commission when re
lief is necessary must be removed by
regulation of excess earnings which
will relieve shipping organizations o!
their apprehension and the commits
sion Of the odium which would be Wis
tied upon it if affluent railroa ds were
} given higher rates to protect Ameri
can transportation from bankruptcy.
In contending that congress mus,
give constructive relief or else see the
railroads plunged into bankruptcy OF
} government ownership, Mr. Johnston
said the Warfield plan offered the
lone solution upon which all conflict
ing elements in the situa ton coult
unite"
1--WE feel absolutely assured" he
said, that in presenting the associa
tion plan we stand upon safe ground
consistent with the constitution anc
with American traditions. While il
is progressive in it's acceptance of the
idea of complete regulat ton we are
certain it preserves the incentive te
good service. high efficiency, and con
sideration for passengers and ship
pers which no governmental organism
or class organization would accord.