Evening star., 1919-08-20
ASK ROADS, return
UNDER SAFE Terms
Executives, Through Chair
man, Recommend Plans to
House Committee.
BROAD CONTROL URGED

Recommendations of the Associa-
ton of Railway Executives for re-
turn of the railroads to private op-
GRAFTON under conditions that will in
sure adequate revenues and maxi
mum service to the public were laid
before the House committee on inter-
state and foreign commerce today by
Thomas De Witt Cuyler. chairman of
the association.
Congress, under the plan. would di-
rect the Interstate Commerce Com
mission to approve rates which will
enable the railroads to be self-sus-
tanning" the rate regulating. author
ity to be vested exclusively in the
central commission and regional sub
commissions. There would be no guar
antee of income or dividends by the gov
ernment.
Broad Regulatory Powers.
Broad regulatory powers would be
vested in a federal transportation
board, to be created as a co-oCdinate
body with the Interstate Commerce
Commission. This boald, to be COM
posed of three commissioners ap-
pointed by the President. would be
charged with general oversight of
transportation from the point of view
of the pubic interest" 1t would re-
lieve the Interstate Commerce Com
mission of all functions except rate
regulation. valuation and accounting.
In regulating rates the commission
would act upon certification by the
board from time to time of the amount
of revenues needed by railroad to
pay operating expenses and fair
return on the value of it's properties
and maintain credit sufficient to at
tract new capital necessary for the
expansion of facilities. 1t was be-
lieved, Mr.. Cuyler said. the railroads
should have from s700.00e.000 to
$1,000, 100000 of new capital annually
for expansion of facilities to meet the
growth of population and industry.
Special Powers Suggested.
The proposed board also would have
authority to distribute traffic when
necessary to relieve congestion on GER
tain lines, to require the use of joint
terminals when in the public interest.
and, in times of national emergency
to consolidate all lines into a unified
system. 1t also was recommended that
Congress authorize the consolidation
of existing lines into strong, compe-
titive systems" when considered to be
IL.
The association recommended, Mr..
Cuyler said, a greater unification of
public regulation of the railroads by
broadening national control" 1t be-
lieved, he said, there should be exclu-
sive national control of the issue of
securities and the expenditure of new
capital. Provision for federal incor-
poration Of Interstate carriers also was
advocated.
Would Guarantee Return.
To avoid the risk Of financial dis
aster' upon return of, the roads to
private operation. Mr. Cuyler said the
railway executives believed 1t neces-
sary that the guaranteed standard re-
turn from the government be con-
tinued until 1t was possible to re
store the equilibrium between reve-
nue. and expenses and make the
carriers again self-supporting. It
was proposed that this readjustment
OF rates be undertaken by the Inter-
state Commerce Commission in con-
eultation with the director general Of
railroads and the proposed federal
transportation board.
By way Of further financial relief
for the roads upon resumption of
private operation 1t was advocated
that their Indebtedness to the govern
ment on account Of capital expendi-
lures made during the period Of gov
ernment control be funded for ten
years.