The Birmingham age-herald., 1919-07-08
JOHNSTON SPEAKS ON RAILROAD RATES Government Ownership of Roads Imperative Unless
 Changes Are Made

Forney Johnston made the principal
 address at a meeting of the Chamber of
 Commerce held last night for the pur- pose of informally discussing remedia.
 programme that should be carried out
 with regard to the present railroad rates, which are stated to be inadequate for
 the support of railroads in this country. MT. Johnston stated that unless some
 thing was done by Congress to remed.'
 the present situation in rates, which a.
 the present time only offer a genera
 profit of from to and fraction pc
 cent, that they would have to be take. !
 over by the government.
 He stated that no organization or COZ
 poration could afford to operate in ar {
 business which did not show net prof
 of at least per cent: that in order C
 protect railroad interests and all parti
 who hold investments therein the prese ,
 rates would have to be made more un
 form and raised in many cases.
 He recommended the indorsement of
 each of the 10 blanks in the bill, wh
 the United States Chamber of Comme
 has proposed to place before Congr ;
 as means of remedying the situati Z.
 The majority of the members of tAt
 Chamber of Commerce present at [
 meeting seemed heartily in favor of 1,
 proposed articles. A vote was taks
 but a number refused to vote, stat { the matter called for further consde ton before they were able to vote < teligently upon the subject
 He also stated that, unless some r. medately remedial legislation was / rived at, insurance companies. bank /s and other large business enterprp would be forced to sell their interests ! the railroads and invest their moneys ], more profitable enterprises, thus fore ts government ownership.
 The articles of the proposed bill as fered for consideration by the Uni States Chamber of Commerce, follow: < The committee recommends adherence the policy of corporate ownership operation, with comprehensive regulati {; the return of roads to corporate opc ton as soon as remedial legislation be enacted: adherence to the period l federal control as now fixed unless until impossbility of remedial legi ton in this period clearly appears: l mission for consolidation in the pu | interest, with prior approval by gove ment authority, in limited number strong competing system.
 The committee recommends a requ ment that railroad companies engae in interstate commerce become fed( corporations, with rights of taxation police regulation reserved for states ' elusive federal regulation of capi'a renditures and security issues of r-5,- roads engaged in interstate comme with provision for notice and hearing state authorities.
 The committee recommends federal ulation of interstate rates effecting i terstate commerce; statutory rule r .- viding that rates in each traffic sect . shall yield an adequate return on a value of the property as determined r' public authority.
 The committee recommends pawn 1 into a fund of share of the exc earned by any railroad system under < plication of the above statutory rule | an equitable minimum return upon < value of property, this fund to be us | 1 as Congress directs for strengthen general railroad credit and ncreas general railroad efficiency; a fede transportation board to promote develc ment of national system of rail- wa and highway transportation and articu.. | ton of all transportation facilities.