The sun., 1919-06-09

railroads. ana By the public and the
railroads being IN constant conflict AZ to
| the reasonableness of the rates"
Mr.. Cook instances also the recon-
mendation made by Julius Kruttschnitt
and Mr.. Thorn, which, BOILED down, is
a proposition that the Government has
! greater supervision and the railroads a
a freer hand as to rates. The railroads
themselves would FIX the rates subject
| to revision
After giving brief reviews OF other
plans, Mr.. Cook concludes:
1.-THE fact Is that high railroad rates
are Incompatible with ths prosperity of
this country. High railroad rates will
! cripple our exports, because the selling
price abroad must compete with for
| eigners, and from that price must be
| deducted the high railroad rate. leaving
| the farmers and manufacturers price
low. High railroad rates are due to
high expenses Of labor and material.
Composition will bring down the latter,
and only greater efficiency can save the
| former. Extravagant railroad expenses
mean high railroad rates. and high rail-
road rates mean stoppage of economic
growth.
The controversy still remains whether
| the railroads themselves shall fix rail-
road rates subject to revision by the
Interstate Commerce Commission, or
| whether the rate shall be fixed by Fed
| eral Railroad Board In connection with
| Government guaranty of railroad in
come. Either plan really involves a
guaranty, the guaranty in one being that
Of dividends on the stock and the other
a guaranty or allowance of rates high
enough to pay such dividends.
! Views on old hoard system.
"a second subject of controversy Is
whether Federal companies shall be or
sanized to control all the railroads, or
whether the Old system Of the control
of the railroads being In many boards
| Of directors, rejecting themselves by
stockholders proxies. shall be con-
tinued. This old plan Is unsatisfactory
to the public II restored It would be
I merely temporary and the discomfort
and conflict would probably lead to Gov
eminent ownership. The public insists
On real public control.
| The regional trunk line plan, COM
b!ned with Federal corporations con-
trolled by a Federal Railroad Board,
| with power to fix railroad rates. and
| with responsibility for paying railroad
expenses, this responsibility being made
imperative by a Government guaranty
| Is a compromise, to be sure but II Is
| e'c Ohiy pAhii "hiSti gives hsSuTdnCc Ok
satisfying all the parties in interest.
and at the same time will prevent Gov
eminent ownership.
| 1T Is tho only plan yet proposed for
| real public control without Government
ownership. and which places RESPONSE
| bility for rate making. the regulation
OF expenses. and the production OF a
reasonable profit. all In the hands OF
one body. instead Of In a divided con-
troll Real public control is insisted
upon by the American people, and the
Thomas Bill will give II. 1t is graft
flying to note that the plan which has
taken twelve years for me to work out
| and which was first published in 1908, is
new being Endorsed generally.
The danger is that the public, out
OF sheer disgust with the present rail-
road rates and service. may abandon
all real public control OF the railroads,
and allow the reactionaries to have their
| way. That way leads to still higher
rates and ultimate Government owner
| ship
The warield plan and the plan OF
the railroads themselves are fatally de.
| fective In that they cannot raise
$1,000, 100000 fresh money a year for
Imperative railroad needs without ex-
cessively high railroad rates"