New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1919-06-20
new RAIL PLANS
ON SOUND BASIS
Congress Determined to Make
Certain Future Growth Of
TRANSPORTATION Facilities.
PLANS AGREE ON PRINCIPLES.
Return of Roads to Owners With
Assurance of Adequate
Revenues.

Washington.-One of the big prob
lens before the new Congress is get
ting the railroads back on a peac,
basis. These 100000 miles of stee
highways were taken over by the Gov
eminent as an Indispensable arm OF
the national defense; but now thai
their war service is over, there Is d
countrywide demand hal the Gov.
eminent restore them to their owners
to be operated on normal American
business standards Of efficiency.
But, as has been pointed out by
President Wilson rs well as by MANY
men in public life who have given
this subject years of careful study,
1t is not enough simply to say to the
railroad companies, Take these rail
roads and give the country the best
transportation service that money and
brains can provide"
Old Laws Obstruct Growth.
The President recently said that II
would he a serious mistake to return
to the old conditions OF railroad regu-
lation without reforming the anti
quated laws that were obstructlng the
free development Of transportation ia
c%ilities. The Director General of Rail
roads has recently made an inspection
trip from coast to coast, and he has
been telling the people that the time
has now come to put the railroads on
q sound foundation.
The plans for a better system OF
national control Of railroads are as
as were the plans for banking
and currency reform when Congress
received n mandate from the people
to provide insurance against financial
The public now demands tn
surance against a breakdown of rail-
road transportation, and the new Con
gress is undertaking this work as sec
ondary only to insurance against in
ternational warfare. Congress solved
the banking problem seven years ago
as a partisan issue, In which all
the people had a common interest, and
Congress evidently is tackllng the
problem with the same spirit.
While the many plans that have
been proposed differ In the methods
to be adopted In reaching the desired
goal, II has been pointed out by Sena-
tor Cummins OF Iowa that all these
plans have really very much in com
mOn-so much so that he Is confident
that Congress will have little difficulty
IN framing a bin that will meet with
popular approval, and that viii take
he railroad question out OF politics
for many years to come.
Many Plans With One Aim.
The Iowa Senator has a command
ing position in this Congress because he
IS the ranking member of the Interstate
Commerce Committee Of the United
Senate, and II Is I'm this com
that the new railroad bin will
AXE final form. In an address before
/ national meeting OF business men
It st. Louis Senator Cummins stated
hat since the close OF the war fully
hirty complete plana for new railroad
had been submitted TO him
~ business men, economists, bankers,
abroad officials and owners, Govern
officials, railroad workers and
lust plain citizens
The basic principles upon which all
II these plans, with one exception,
Igree are as follows
I. Private operation is more eff
cient and more economical than
Government operation, and the
public interest will therefore be
served by a return OF the roads to
private management.
2. To make certain that new
capital will be attracted to the
expansion OF railroad facilities,
there ought to be greater certain
ty that a fair return will be earn.
ed on the investment.
5. The merging OF weak and
strong roads INTO large competing
systems should be encouraged.
The making of q formula to pro
fde q fair return on railroad capital
eems likely to be the phase OF the
'robiem most thoroughly debated in
Congress-. The Director General has
'een urging that the Government
'ught to guarantee a certain return
nd share In any excess earnings.
leading bankers, especially some Of
he international bankers 10 Wall
treet, who have in the past marketed
many hundreds Of millions Of railroad
ecurities, also look favorsbly on the
.uggestion of q Government guaran-
ee, which will make II easier to sell
lew securities, and will also stabilize
he market for the old bonds and
tocks.
Government Guarantee Opposed.
But the proposal that the Govern
1ent shall guarantee the interest and
ividends on private capital invested
D railroads will undoubtedly meet
nth very vigorous opposition In many
uarters. Even railroad executives,
vho might be supposed to take kindly
o the idea Of q Government guarantee
gainst failure, have frankly stated
hat they do not want IT, because they
elieve II is un-American In principle,
vould tend to lessen efficiency, and
7ould involve the roads In q Govern
nent partnership that would inevita-
~ lead to Government ownership.