The Barre daily times. (Barre, Vt.) 1897-1959, 1919-08-16
MUST EXTEND HAND
TO AMERICAN RAILROADS
If Congress Proposes TO Build Founda-
ton for American Prosperity, Says
Forney Johnston.

Washington, D. c., Aug. 1e.--If Con-
gress proposes to build foundation for
American prosperity it must extend a
steadying hand to the railroads, Forney
Johnston OF the advisory counsel for the
National Association Of Owners of Rail
road Securities, told the House interstate
commerce committee yesterday
IF Congress does not take courage
Gus and construction action now" said
Mr.. Johnston, appearing in behalf OF the
Warfeld six per cent return plan, THE
progress of a generation toward a we'll
regulated system of privately owned and
operated railway transportation will be
destroyed and the seth Congress will
have forced government ownership under
conditions and with results which the
future alone can assay"
Mr. Johnston contended thu Security
System association had preserved the
only process that would avoid "this ia
tai and irrevocable step"
Pointing out that in 1915 ninetyone
railroads, operating more than 10000
miles had paid no dividends whatever, he
declared American railroads had been
kept in bread line before the doors
of the interstate commerce commission
since 1910, and that relief by the com
mission had been denied or grudgingly
and sparingly dealt out because certain
roads in each region we're thought to be
affluent.
"Yet before the committees Of Con-
gress and in every case brought before
the commission to advance rates." the
witness said, "a vast mileage of Amer
lean railways has been choked off with
the assertion that average statistics show
average prosperity. In all of these cases
the commission has been actuated Ia
deny general relief because certain roads
were prosperous and the commission was
unwilling to add TO their prosperity even
to save the large number Of roads which
were receiving admittedly inadequate
revenue
It was TO meet this situation, he told
the committee that the Warfield plan
would direct the commission TO fix rates
40 that the roads could earn a minimum
guarantee return Of 6 per cent on capital
invested with division Of all surplus
over that figure among employees, the
public and the earning road
"The fundamental proposal Of the
Warfed plan" Mr.. Johnston declared
''is that this continual basis of warfare
between the shipper and the railroads,
the constant depressing factor against
relief before the commission when relief
Is necessary must be removed by regIla-
ton Of excess earnings which win re-
lieve shipping organization Of their ap-
prehension and the commission OF the
odium which would be visited upon IL II
affuent railroads were given higher rates
TO protect American transportation from
bankruptcy"
In contending that Congress must give
constructive relief or else see the railroads
plunged into bankruptcy or government
ownership, Mr. Johnston said the War
field plan offered the zone solution upon
which all conflicting elements in the sit
uation could unite"
1--WE feel absolutely assured he said,
chat in presenting Che association plan
we stand upon safe ground, consistent
with the constitution and with American
traditions. While 1t ia progressive in It's
acceptance Of the ideal Of complete reg.
ulation we are certain ii preserves the in
centive to good service, high efficiency
and consideration for passengers and
shippers which no governmental organ
ism or class organization would accord"