The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-19
Reassembling OF Congress.

Wall Street never has looked forward
with as much satisfaction to the reas-
sembllng OF Congress as II evinces to-
Gay. In most years there has been a
sigh OF relief when the Washington leg
islators went home and II was known
that the country would be given a
respite from new legislation and unset
thing controversies which IT often ex-
cited. But Che nationwide interest
shown In satisfactory solution OF the
railroad problem Is 50 great and the
showing OF the carriers under Govern
ment control has been so disappointing
that the people have reached the conclu-
sion that the railroads must be re-
stored to private management as soon
as the necessary legislation could be pro-
vided. Congress must take the initial
action in safeguarding the future OF an
industry on efficiency of which depends
the welfare of pretty nearly every other
industry in the United States. In a
country OF magnificent distances genuine
prosperity cannot long exist IL railroads
are badly managed or operated at such
a high expense ratio as to add mate
rally to the cost of living and the bur-
den OF conducting business.
This is OF unusual importance this
year because OF the great volume Of
traffic which roads are always called on
to handle in a season OF bumper crops
when agricultural States enjoy excep-
tional prosperity. The chances are that
Congress will attempt to provide for
the roads through enactment of a law
modelled after the Federal reserve act
in the effort to give the carriers freedom
of action, with sufficient Federal supervi-
sion to keep them under control.
1t is probable that Paul NJ. War
burg, whose assistance has been sought
In formulating a railroad law, would
favor some such course. In an address
before the United States Chamber OIL
Commerce at Atlantic City In December
no dwelt on dangers Of continuing Gov
eminent influence in business affairs
during peace times. As to the railroad
problem he said: TN the case of the
railroads It is not merely question be-
tween security holders and shippers. 1t
Is a question which Affects on the one
hand the very root of the integrity and
safety of our future political life. On
the other the very foundation Of our eco
nomic development. Tho next year or
two must bring forth legislation which
ought to be for tho railroads what the
Federal reserve act has been for the
banks. To ind the proper formula Will
be a national contribution OF the highest
order. 1t will be a difficult task. but
Just for that reason one to which the
best minds of the country should address
themselves without delay"
Two months later. In speaking before
the New York Chamber OF Commerce
on the railroad problem. he said he
thought the country should have su-
preme courts of finance, railroads, trade
and labor. and that by combining some
features OF the Railroad Administration
with the general plan Of the Federal
reserve system an acceptable plan for
regulating roads might be formulated.
The idea involved Transforming the In
| terstate Commerce Commission into a
body Of Ave or seven members In Wash
ington, whose duties would be half judi
cial and half administrative. dealing
with roads through regional boards, on
/ hlch state commissions, railroad men