The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-10-27
SALIENT FEATURES
OF CUMMINC RIII,

Washington. October 2s.-(Special)
The manner in which the Cummins
bill follows the Warfield plan is of
interest and Importance to all the peo-
pie, and especially to the residents
of Ala bama and Birmingham.
For Forney Johnston of Birming-
ham. devised the Warfield plan and
rendered the majority of opinions bear
ing on that plan-opinions which Elihu
Root and other distinguished attor-
neys, formally agreed
The following statement sets out
the essential details of the bill and
shows how the interstate commerce
Warfleld plan:
The regulatory rate making fea-
lures of the Cummins BILL, under which
there is provided a definite percent
age return on the value Of railroad
property in the aggregate devoted to
the public use, present perhaps the
most advanced step in constructive
railroad legislation since the estab
lishment of regulation by commission.
These features follow the fundamen-
tails of the security owners as pre-
sented IN the Warfie1d plan, which
was the first concrete expression of
"a fixed percentage return and of reg
ulation of excess earnings. This plan
provides that the railroads be grouped
the yield, from rates be computed on
the aggregate of the investment in
the railroads grouped in each of these
territories. This yield to be percent
age return of not less than six per
cent on the aggregate of such invest
ment. not on the securities issued by
the respective railroads The Cum
Minis bill adopts the group system and
allows the six per cent, but one-half
of one per cent thereof is defined as
allowed for unproductive improve
ments. but not to be capitalized for
rate making purposes excepting in the
case of railroads not earning up to
six per cent.
The Warfield plan provides that ex-
cess earnings beyond 81 per cent be
distributed one-third the railroad
earning them. one third to the emf
ployes and one-third into a fund to
be used for purchasing equipment and
other facilities to be leased to all the
railroads and available for making
not being favorable to the division
with labor, Senator Cummins divided
their third equally between the rail
road and the transportation fund, max
ing the division one-half to each.
| The Cummins bill provides a trans
portation board to expend this fund;
the Warfield plan provides, Toy its ex-
| ptHQlLuTe ny d DOdIQ OIL lIuSlcCS COAft-
posed of the members of the inte~-
state commerce commission and rail
road operators. The Wa9field plan pro-
vides that reserve accounts be set up
with each individual carrier before the
taxing of excess earnings: the Cum
minis bill provides for setting up these
reserve accounts with each carrier, but
out of the excess made by the carrier.
The Cummins bill also provides certain
restrictions, in respect to that portion
of the excess above six per cent which
the carriers are allowed to retain as
reserve fund: the warfield plan, hav-
Ling provided for reserves before ex-
cess is taken places no restriction on
the carriers use of its portion of ex-
cess.
The cummins bfll provides that after
dividing one-half to the railroad and
one-half to the fund up to seven per
cent, under the restrictions named,
one-quarter after seven per cent is
retained by the railroad and three
QUARTS goes to the fund; the War
field plan called for one-third to the
railroad and two-thirds to the fund
The Warfield plan provides for re-
gional boards of Cancellation to take
up labor dispuates. The Cpmmins bin
provides for regional boards to take
up questions of labor, ana for their set
Element under the anti-strike provision
of the bill. making arbitration compui-
sorry. The Warfield plan did not go
to this extent. It provided that there
shoui6s be no strike during the pro-
cess of operation.
In it's ultimate result the Warfield
plan is somewhat more liberal to the
railroads than is the Cummins bill
Both the Cummins bill and the War
field plan provide for the regulation
by. TIE interstate commerce commits
sion of future issues of securities and
that the commission shall regulate in
trastate rates which burden the in
terstate freight structure.
The Cummins bill provides that with
in seven years there shall be a com
solidation of the now existing rail-
roads into not less than 20 nor more
THAI 35 new railroad companies. maxi
ing. however,. certain obligatory COP
1itions in relation thereto. The War
field plan provides for permissive con-
solidations under the supervision of the
interstate commerce commission.
Tho Warfield plan provides for an