The sun., 1919-03-10
SEEKS HELP FROM
SECURITY OWNERS
Rock Island Asks Them to
Urge Congress to Pass Re-
medal Railroad Laws.
PRESIDENT SENDS LETTER
New Legislation Must Regard
Private Capital, if That Aid
Be Needed, He Says.

The first railroad in the United states
to call upon it. stock and bond holders
by personal letter TO urge upon their
Senators and Representatives the OPP
portunity for and the desrability OF
enacting remedial railroad legislation is
the Chicago, Rock Island and Pacific
Railway, which yesterday sent out such
letter to about $4,000 stock and bond
holders. The letter was signed by
Charlie, Hayden, president OF the com.
OF directors after considerable discus
sion.
The cooperation OF Senators and Rep
resentatives was asked toward passage
fundamental principles:
mo necessity for extension of present
control beyond twenty-one months after
final declaration OF peace, which should
be ample time for legislators to pass
legislation necessary. If a longer period
than twenty-one months were to be
adopted there would be less incentive
for legislators TO give their immediate
attention to this matter Of vital i'm
portsnce.
Private operation and ownership Of
the railroads rather than Government
ownership. but such private operation
to be under efficient regulation that
shall be constructive rather than merely
punitive
The railroads should not be returned
to their owners without new legislation
looking to improved conditions.
To avoid unnecessary and tasteful
compensation the Sherman law should
be amended TO permit mergers. CONSOLE
cations and the pooling OF facilities,
equipment and traffic under supervision
OF the Federal Government.
Federal Control as over Wages.
Federal control over rates and regu-
lations should be in the same hands as
control over wages and the law should
require that wages be taken into ac-
count in fixing rates
The Federal Government should have
exclusive Jurisdiction over issue OF Sc
curities necessary for improvements and
refunding purposes; over rates and
other matters affecting carriers. leaving
only strictly local matters to State reg
ulation.
Owners OF railroad securities should
have representation on the Federal gov
erning body.
III private capital be depended upon
for developing and extending railroads
any scheme OF legislation must be
framed that sufficient incentive will be
offered 10 such private capital. In or
der TO accomplish this object it will be
absolutely necessary either to guarantee
a fixed interest return Oh investments
or establish and maintain rate struc-
ture which VIII permanently assure an
ample return on property investment OF
railroads as a whole.
Federal Government supervision
should extend to water routes and other
trade roates that compete with rail-
roads"
This statement" the Rock Isla nd
says. lie of interest as embodying views
OF the directors OF the Rock Island on
the fundamental points to be included
in the legislation that necessarily will
he enacted by the next Congress. The
Rock Island board Is composed of men
Identified with many diverse interests
and residing in various cities OF the
country and Is perhaps more represen-
tatiVe than the board OF any other large
railway company.
Directors From Many Lines.
The directors are as follows: Nathan
l.. Amste-, president OF the Railway In.
vestors Protective Association; NJ l.
I Bell, yice-Dresldent and general counsel
New York Henry Bruere. formerly City
Chamberlain OF the city OF New Yorl
and now vice-president OF the American
Metal Company Beman G. Dawes. pres
,, ident OF the Ohio Cities Gas Company
Columbus, Ohio: Nathaniel French
manufacturer, Davenport Charles Hay,
den OF Hayden. Stone & Co. New York
James A Patten. grain merchant chi
cago: A. c. ResricX. lawyer. New York
William z. Ripley, professor OF eco
nomics. Harvard University; F W
Scott OF Scott & Stringfellow, bankers
Richmond Va John g. Shedd. presi
| dent Of Marshall Field & Co, Chicago
| James Speyer. New York. and p. G
! Ten Eyck, consulting engineer, Al
| bany.
| That hoard of such diversified char
acter should recommend to its security
! holders enactment of these fundamen
| tai principles ought to have weight viii
| Congress in formulating new legisls
ton, and It is hoped that other board
will take similar steps to obtain as