The sun., 1919-08-14
COMPROMISE TN
RAIL PLANS SEEN
U. s. Chamber Of Commerce
Says There Is No Middle
Course in Affairs.
is SHOWN
Transportation Conference
Had Many Suggestions Of
fercd as Solution.
Special pespatcA TO Tur sun.

WASHINGTON, Aug. 13.-The Chamber
of Commerce Of the United States In a
statement tonight declared there could
be no compromise between the two typi-
cal plans Of railroad reorganization
lately urged-one for Government own
ership with operation In the interest Of
the employees and the other for return
OF the roads to their owners. 1t says
there can be no middle ground and pro-
ceeds to outline the programme adopted
by the recent National Transportation
Conference.
In that conference all classes were
fully represented: Farmers. lawyers,
bankers, capitalists, laborers, merchants,
railway executives-the whole COM
munity. There were as many plans as
we're before the Peace Congress. The
plan adopted was briefly:
Return Of the railroads to private own
ership and operation as soon az the
necessary remedial Legislation IAN be en-
acted.
Consolidation Of existing railroads into
strong competitive systems.
Requirement that all carriers engaged
In interstate commerce subject them
selves as corporations to federal Jurisdic-
ton.
Exclusive Federal regulation of the
capital expenditures M security issues
of all carriers in interstate commerce.
Interstate Commerce Commission to
retain its present powers and be given
additional powers over rates.
transportation Board Urged.
Creation Of a Federal tr%ansporta-
ton board to promote development of
rail, water and highway transportation
to pass upon the public necessity for
capital expenditures; to regulate Sc
curity issues to administer and enforce
measures Strengthening n establishing
railroad credit to determine the group
ing or consolidation OF railroads deemed
to be in the public interest. n to carry
out plans authorized by Congress for
merging all railroads engaged In inter-
state into strong competing
syste ms.
Adjustment OF the wages and work
ing conditions Of railroad employees by
boards consisting OF equal numbers OF
representatives Of railroad employees
and railroad officers with the Federal
transportation board as referee.
Adoption by Congress of a plan for
stabilising railroad revenue n credit
by means Of
Gay Enactment OF a statutory rule
providing that the rate structure estab'
lished by public authority shall be de.
signed to yield 6 per cent. per annun
on the fair value Of the roads IN each
trafiic section OF the country. such fail
value TO be determined under considera'
ton OF both physical value and earning
power.
(b) Use of the aggregate propert,
investment accounts of the railroads a
the fair value Of the property for rat
making purposes pending completion o
the valuation now being made by tn
I. c. C.
(c) Creation of two kinds Of contin
gent fands-an individual railroad con
tingent fund established by a roa,
to support It's own credit. and a genera
railroad contingent fund maintained b,
contributions from all prosperous road
managed by trustees appointed by tn
Federal Transportation Board and USE
to support the credit OF all railroads
Any excess in the general railroad con
tingent fund above $3.50, oo0. 900 is to b
used for the general development o
the transportation system OF the coun
try.
Rail Reserve Fund Asked.
Creation of a railroad reserve fun,
administered by the Federal Transports
ton Board to facilitate the prompt sta
b~ilixation of railroad credit and loan o
$500 900, 900 to this fund by Congres
as soon as the railroads are returne'
to their owners: the o to be used !
necessary In making advances to tn
general railroad contingent fund and I
be repaid with interest from money
contributed by the railroads to the gen
eral railroad contingent fund.
Determination and announcement b,
the Federal Transportation Board o
that grouping or consolidation of rail
roads deemed to be In the public inter
est and authorization for the board I,
require such consultations IL they shall
not nave been effected or we'll advanced
within a period Of Ave a after tn
board has declared them to be desirable
Organization OF the board OF director,
of each consolidated railroad system
with twelve members OF the board. on
to b a representative OF the employee
of the system nominated for such a 20
sition by the employees and three to b
selected by the Federal Tr~ansportatiol
Board, to represent the principal inter
ests involved in the territory served.
The chember has adopted by refer
endum vote seven of the above recon
m~endatlons of the national conference
propositions l to 6, and also the last
The other parts of the conference pro
gramme, though not included In the plal
adopted by the Chamber of Commerce
are in harmony with the principles Of tn
chambers plan.