Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-08-20
RAIL EXECUTIVES
WANT j. s. BOARD
CuyIer Urges Broad Federal
Regulation Plan Before
House Committee
ASKS FOR ADEQUATE RATES

Washington, Aug. 20.-Recommenda-
tions of the Association Of Railway Ex-
ecutives for return of the railroads to
private operation under conditions that
will insure adequate revenues and max
imum service TO the public were laid
before the House committee on inter
state and foreign commerce today by
Thomas De Witt Cuyler, of Philadel-
phia chairman of the association.
Congress, under the plan, would di.
rect the Interstate Commerce Commits.
sion to approve rates which will en-
able the railroads to be self sustain
ing" the rate regulating authority to
be vested exclusively in the central COM
mission and regional subcommigsions.
There would be no guarantee of income
or dividends by the government.
Broad regulatory powers would be
vested in federal transportation board
to be rated as CO. ordinate body with
the Interstate Commerce Commission.
This board, TO be composed of three com
missianers appointed by the President,
would be charged with general over
NlBhI VI lullUn from Ine DOlnJ
of view of the public interest,"
1t would relieve the Interstate Com
merCe Commission of all functions ey-
cept rate regulation, valuation and ac.
counting.
Money for Expansion
In regulating rates the commission
would act upon certiication by the
board from time to time of the amount
of revenues needed by railroad to nay
operating expenses and "fair return"
on the value of its properties and main
tain credit sufficient to attract new
capital necessary for the expansion of
facilities.
1t was believed. Mr.. Cuyler said, ,
the railroads should have from 500, :
600, 900 to 81 900 900, 900 of new cap
ital annually for expansion of facili-
ties to meet the growth of population
and industry. The proposed board also
would have authority to distribute traf-
tic when necessary to relieve congestion
on certain lines, to require the use of
joint terminals when in the public in
terest, and in times of national emer-
gency to consolidate all lines into a
unified system.
1t also was recommended that Con-
grcss authorize the consolidation of
existing lines into 'strong, competitive
systems when considered to be in the
public interest.
Would Broaden Control
The association recommended, Mr..
Cuyler said greater unitication of
public regulation of the railroads by
broadening national control" 1t be-
licved, he said, there should be ex-
elusive national control of the issue Of
securities and the expenditure of new
capital. Provision for federal incor-
poration of interstate carriers also was
advocated.
To avoid the risk of financial dis
aster" upon return of the roads to pri-
vate operation, Mr.. Cuyler said the rail
way executives believed it necessary
that the guaranteed standard return
from the government be continued until
| it was possible to "restore the e0uilib-
rum between revenues and expenses"
and make the carriers again self sup
porting. 1t was proposed that this re
| adjustment of rates be undertaken by
the interstate commerce commission in
consultation 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, it was advocated that their
| indebtedness to the government on ac-
count of capital expenditure made dur
ing the period of government control be
| funded for ten years.
In concluding his statement, Mr..
Cuyler attacked the Plumb plan for
reorganization of the railroads, declar-
ing it was so radical that when under
stood it never would be approved by the
company.
Washington, Aug. 20.-(By A. P.)-
Director General Hines and represen
tatives of the six railway shop crafts
began discussions today of the shop.
mems wage demands. 1t was said thai
Mr.. Hines was working on a plan fol
the handling of these and similar de-
mands from other unionss affecting vir
tually all the railroad employees. De
tails are expected to be announced in
few days.