New-York tribune., 1919-07-30
One Big Railroad
Plan Submitted to
House Committee
'Amster' Idea Contemplates
National Company to Take
Over All Lines; Author
Explains Its Advantages
NeU York Tribune
Wdshin0tOu Bureux


Washington Bureaw
'WASHINTON, July 29.-The Amster
plan, under which a national railroad
company would be formed to own all
the railroads of the United States, was
presented to-day to the House Com
mttee on Interstate and Foreign Com
merce by Nathan L. Amster, of Bos-
ton, representing the Citizens Ma
tional Railway League. The same plan
on Interstate Commerce in the last
session of Congress-.
Mr.. Amster prefers his plan to con-
solidation of the railroads into fifteen
or twenty different systems. He would
bring about ownership of the roads by
forming a national company to take
over the stock and assume all their
bonded Indebtedness.
The objection made to the over
Capitalization that it is contended
would result from one companys own
ing all the roads, Mr.. Amster said,
would be met by creation of Board
of Governors of nine members to be
appointed by the President--one from
the Interstate Commerce Commission,
one from the state commission, two
from the United States Chamber Of
Commerce, one from the national
board Of farm organizations and three
from the security owners.
I. C. C. to Retain Functions
The plan further provides for an
advisory rate board to act under super
which would not be interfered with
under this plan. Mr.. Amster said
Congress should make it mandatory
that the commission establish rates
that would pay per cent on stock of
the consolidated company, pay operat-
ing costs and cover depreciation. If
there should be surplus above the
amount needed to meet the demands
enumerated, he said, it would be
divided among employees and a reserve
fund. Mr.. Amster believes if 25 per
cent of the surplus were given the
employees there would be fewer strikes.
ployes have been too high.
ut is not necessarily true that own
ership of all the roads by one COM
pany under government supervision
would result in inefficient manage
ment," he said. GAS for operating pur-
poses, the roads would be divided into
regional systems. A scientific rate
structure can be obtained only under
such plan as this. There are at
present shippers who are underpaying
the railroads for service.
"Another result would be that in
dustries best able to pay would pay
more for services than those less flour
ishing. If, for example, crops we're not
good in a certain section, lower rates
could be given the producers there"
Public Ownership in Fact
Replying to questions as to whether
the plan meant government or private
operation of the roads, Mr.. Amster de-
clared that in theory the plan meant
private ownership, but that in fact
the people would be running the roads
paying a fair return to the stockhold
ers. He indicated that the plan would
require Congress to authorize the
stockholders Of the various roads to
get together, and that at least three
of the largest roads must be parties
to the plan before it could become eff
fective.
The hearing brought out the fact
that under the plan there would be &
board of governors and trust and
finance corporation to handle q fund
of $50O,000,00& to be borrowed from
the government to perfect the pro-
posed consolidation, valuation and
adjustment commission and labor
adjustment commission, all in addi
tion to the Interstate Commerce Com
mission.