New-York tribune., 1919-01-05
M u Ian
To Be Rejected,
Declares Fess
Representative Tells Repub-
lican Club Congress Will
Turn Back the Railroads
Favors u. S. Regulation
Would Let Lines Pool Inter
ests Under Direction of
National Commission

Representative Simeon D. Fess, Of
Ohio, told members of the Republican
Club here yesterday that Director
General McAdoo's proposal that Fed
eral control OF the railroads be ex-
tended to a period of five years would
be turned down. Representative Fess,
who is the chairman OF the Republican
Congressional Campaign Committee,
was loudly cheered when. speaking at
the first of the clubs tenth season of
non-partisan discussions, ne stated
cmphatically:
"The i've year extension of Federal
control of the transportation systems
will not be granted. I have no right
TO speak dogmatically to you, but am
not prophesying. l am merely stating
the facts"
Bitterly cyiticising government con-
troll of railroads, Representative, Fess
drew applause again when he declared:
''As to economy, of course no man
of Judgment will say the government
is ever economical. 1t is the most
slovenly, wasteful institution on earth
in its business operations
Poorly Prepared for Peace
The United States, said Representa-
tive Fess, criticising the lack of a
definite programme of reconstructlon
is as poorly prepared for peace as 1t
was for war"
This is not time for exultation,
but for serious, sober work." he con-
tinued. "Yet We have no definite pro
gramme. The 65th Congress is still IN
Session and the Goth will not be con-
vened until December, 1919, unless the
President calls it together. Will he ?
Nobody knows
But for those of you who are rest
less. that is the reason we have been
unable to come forward with definite
nrogramme l do not know how the
President regards reconstruction. But
know that it is not wholly executive.
II is partly executive and partly legis-
lative."
The country must unshackle bust
ness. Mr. Fess declared. The merchant
marine constructed during the war, he
said. preferably should be sold out
right to American citizens or Ameri-
can companies to be run under govern
ment regulations providing for the
maintenance Of American Standards
the difference in the cost of operation
to be fixed and paid out of the national
treasury.
Would Let Roads Pool
The plan to extend the period of
Federal control of railways to five
years. said Representative Fess, ind
Gated hopefulness that government
control might be proveL success in
shat length of time. While to turn
the roads back to their private owners
with the present restrictions was non
sense, ne declared that the present
system was "intolerable without hope
of correction" Discussing solution
of the transportation problem, the
representative said:
MY opinion is that neither COM
plete private ownership nor govern
nent ownership is the wise way. We
must find a way which will include the
good of both systems" Representative
Fess declared, "there should be legisla-
ton to permit the roads to pool their
properties and the Sherman law should
be repealed"
He also proposed a National Admin
Stration Board to have supervision over
transportation III the way in which the
Federal Reserve Board has over bank
ing. This board would supersede the
Interstate Commerce Commission
which, he said, should be abolished
The government, he continued, should
regulate the issuance of securities and
at the same time permit such profit to
security holders as to- insure a ready
lhd lhtt 1ui tHe DOUCS.
When the War Came
Representative Fess spoke without
notes. but he covered fully in sub
stance the text of his prepared ad-
dress. which was in part as follows:
When the war came, notwithstand-
ing the fact we had the finest railway
system of all the world, operated at
the least expense, giving the most eff
clent service, 1T was quite apparent the
maximum utility Of the rail facilities
could not be realized. The one demand
was the most complete mobilization Of
I'll our energy for speedy winning Of
the war
Hero was the greatest mileage of
roads on the globe, so splendidlv To-
Gated as to answer the needs of trans
portation. The only item wanting was
the authority to utilize the capacity Of
the roads. This was lacking, owing to
The limitations of law best known un-
Ger the Sherman act and the inter-
state commerce rulings
Prevented Full Benefits
The Sherman law clearly prevents
the maximum utilization of the roads.
which. can only be realized by regard
ing them az one system. When the
war came and the most complete use
OF these facilities was demanded the
one thing demanded was forbidden h.,
the Law. To repeal the laws Of limita-
ton was impossible under the stress
Of public opinion against combination.
The only thing we could do was to ip-
more the laws by taking over the roads
20 be operated by the government In
other words. the government, in order
10 correct results of it's own DEGREES