New-York tribune., 1919-02-14
M lark ets-Investments


their examination, no set time was fixed
by the committee for rs rcappearance:
Mr.. Freer, representing the National
Traffic League, who was to have gone
on to-day, and Nathan l.. mster. of
BOSTON, president of the Investors Pro
tective Association of America, will be
heard tomorrow. Mr.. Amster not orly
will present a plan of his own, but will
take vigorous issue, it is, understood.
with the Warfield proposals.
The House 1nteVtate Commerce
Committee hopes to take up the rail
read question next week.
Mr.. Warfield further testified:
"The friends of government owner.
ship have set up as an excuse to appro-
pirate the railroads the Importance of
carrying out certain alleged great r.
forms in the transportation system. So
the discussion turns largely to the best
WAY to effect these great reforms. Some
of them may be real, some would be
bad, but the whole OF them are trihlLS
as compared with the big wholesale in
jury to the transportation system OF
the country involved in subjecting it to
various cures and to political influence
and control.
"The people are beginning to recog-
rize Che fact that whatever defects
rrivate ownership and operation may
have had, the railroads have given to
the country wonderful system OF
transportation, and such as no other
country has ever had. 1t should not be
]irhtlv destroyed. 1t is the feebleness
OF the general public policy Of the rail
roads and the policy Of the government
toward the railroads that are subject
to CRITICISM. ~,
cral control and operation can be ex-
tended with definite purposes in the
minds of those in control of it, and at
the same time that you do not favor
government ownership, when, pcrforce,
YOU bring it about whether you favor
it or not.
Warns Of One-Man Power
"Give me the direction Of extended
Federal control and operation of the
railroads for five years, or even three
years. and under my direction they
could be so operated that at the end
Of the period they would find them
selves in the position of being forced
to accept the larger company .prcposi-
tion, or government ownership, II 1t
was my belief that it was desirable
to eventually land them in one or the
other direction.
Al
could determine and control the policy
Of the nation in respect to these great
enterprises. His political power, il he
chose to exercise it, would be danger
Gus in the extreme.
at is neither fair nor economically
sound for the army of railroad en-
ployes to be placed under the control
and under political influences possible
of being exercised by any such system.
lI ,+r@, of loh ~
an extension Of this system, then they
are misguided. 1t is unsafe for either
employees, shippers, the public or the
owners.
Should Define Duties
"If Congress should unfortunately
decide that larger regional companies
shall be organized, then Congress
ought to direct the Federal official
who will continue to operate the
properties just what he is to do with
them r order that their owners and
the country may promptly know the
final result"
He urged that Congress undertake
early action to insure return Of
the roads to private management.
Asked by Senator Pomerene whe ther
holders Of railroad securities earning
net operating income above per
cent would not object to splitting their
returns with the employees and the
equipment fund, Mr.. Wartield explained
that only thirty-two of the 1862 roads
or systems referred to in his exhibits
would be affected in this respect, and
only nine of the thrtytwo affected
seriously.
RAILROAD security owners" he said,
"realze they are facing serious situa-
ton and that existing conditions are
not going 70 be permitted to continue.
For this reason it does not follow that
those now enjoying return above the
6 per cent are going to object to the
proposed division of the excess"
He submitted the following table to
show the general effect of the scheme
upon the 1G2 Glass l roads in the vari
Gus sections of the country:
Eastern Classification Territory
81 railways not earning up to SO
would receive average. ....... 1910
Sc railroads earning over GO
would receive, average ......... 6.l99o
G. railroads, the total in Eastern
territory, receive after allowing
for earnings reduction.
average ................... 0ooto
Total excess earnings over Go !? S47, 1914. 900
Deduct one-third retained by the
roads earning it, there would be
turned into the fund .... S3f 1863, 900
Southern Classification Territory
IA railroads not earning up to SO
would receive average. ...... 1869
IS railroads earning over SO
would receive, average. ........ 637co
80 railroads, the total in Southern
territory, receive after allowing
for excess earnings reduction,
Total excess earnings over SO S20. .619, 900
Deduct one-third retained by the
roads earning it. there would be
turned into the fund. ......... $13, ,746,O 900
Western Classification Territory
80 railroads not earning up to SO
would receive, average. ..... 367co
"A railroads earning over 60
would receive. average. ........ 6169s
63 railroads, the total in Western
territory, receive after allowing
for excess earnings reduction.
average ................., 5.51 60
Total excess earnings over SO $06,8 900
Deduct third, retained by the
roads earning it, there would be
turned into the fund. S37, ,S85, 900
Director General Hines, appearing
this afternoon before the railway COM
mittee of the United States Chamber
of Commerce, repeated many of the
arguments he has made before the
Senate committee in behalf of the five
year extension of Federal control. He
urged the Importance of the railroads
10 hi