Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-01-10
THREE RAILROAD
PLANS SUBMITTED
Senate Committee Will Not
Decide Until After
Further Hearings
BY CUYLER
Roads Want Private Owner.
ship Under U. S. Control
Through Cabinet Member

/
Washington. Jan. 10.-Members of
the Interstate Commerce Commission
appeared today before the Senate Inter-
state Commerce Committee to give ad-
ditional testimony in support of the
commissions proposal for legislation
dealing with the railroads. AT a pre-
vious hearing of the Senate committee
the commission suggested a policy OF
private ownership and operation under
Government. regulation.
In addition to the proposal of. the
Interstate Commerce Copmission two
other plans have been submitted. Di-
rector General McAdoo has advocated
that Government control of the rail-
roads be extended Ave years. and should
Congress not decide upon this. the rail-
roads be turned back to their owners at
an early date. Railroad executives yes
terday laid before the Senate committee
a proposal for private ownership and OPP
Grafton under regulation of a new mem
Der of the cabinet to be known as Sec
rotary of transportation and with the
Interstate Commerce Commission as a
supreme court of review in rate disputes.
There has been no intimation as to
which of the three plans is favored in
Congress. and the Senate committee will
not attempt to reach an agreement until
after further hearings. Several railroad
officials will appear before the committee
next week. g..
Indications of a definite congressional
sentiment against any plan for future
railroad control which would permit
private arrangements to Initiate rates
became Immediately apparent yesterday
during the cross-examination of r.. De
Witt Cuyler. of Philadelphia, before the
Senate Interstate Commerce Committee.
Cuyler Explains Plan
Mr.. Cuyler, who is chairman of the
Association of Railroad Executive. laid
before the Senators a comprehensive
plan devised by railroad officials for
, the return of the roads TO private opera
ton under stringent Government super
vision. While the most striking feature
Of the proposal proved to be its pro-
vision to create a new post in the Presi-
dents Cabinet to be known as the sec
retaryship of transportation. the prin-
ciples underlying the railroad executives
plan were narrowed down by Mr.. Guy
Ter to the following points: .
Federal regulation and scrutiny of the
ISSUANCE of railroad securities.
Repeal of the ~anti-pooling laws. to
permit mergers and consultations.
Federal assurance of a guaranteed
return on railroad Investments.
To the first two principles the MEM
bers of the committee seemed to be
agreed at once. and gave evidence that
it was in accord with the apparent
sympathy with the proposal that the
roads should go back to private opera
ton with the expiration of the present
twenty-one months period OF Federal
control. The third principle. however.
caused considerable discussion.
And this discussion hinged upon pro-
visions in the plan OF Mr.. Cuyler's as
sociation by which the railroads would
continue TO exercise their old power
of initiating rates subject to review by
the Interstate Commerce Commission.
sees No End Of Deficit
IF Congress guarantees the railroads
a reasonable return on capital invested
asked Senator Underwood. of Alabama,
Democrat. what further rights have the
railroads to ask of the public? What
right have the railroads to expect to
exercise the power Of initiating specific
rates? II seems to me II the railroads
get a guaranteed return from the Gov
eminent that the Government should. as
a mere matter OF justice to itself. fix the
rates. There are two sides to this ques-
ton. and any decision Congress reaches
must be governed by consideration OF
the interests of the shipping public as
we'll as its consideration of capital"
Senator Townsend, of Michigan, Re-
publican, also took the same view. He
described the plan Of the railroad ex.
ecutivs as a scheme which would pro.
tect the railroads and their employees
but leave the public at a disadvantage
II am not for Government ownership
declared Senator Townsend. but the in.
terest of the public must be safe.
guarded"
The cross-examination of Mr.. CuyIer
also developed that the railroad texecu.
tives did not agree with Director General
McAdoo's view that the Federal oper-
alton OF the roads during 1919 would
wipe out the deficit piled up by the
administration this year. Nor did lie
share Mr.. McAdoo's opinion that rate ad-
vances imposed last July to meet the war
emergency could be lowered. &.
Mr.. Cuyler expressed the belief that
! should Federal control Of the roads be
extended five years, as advocated by Mr..
McAdoo, that the end OF the fve-year
period would still find the Government
management facing a deficit.