Evening journal., 1919-11-11
RAILWAY RATES GO
UP IF BILL PASSES
y. S. to Guarantee Revenues
Six Months After the
Return of Roads
TEN HOURS OF
DEBATE ARE SET

WASHINGTON, Nov. ii.-lncreaseo
railroad rates are probable within tht
next few months, If provisions OF the
House railroad bill become effective
according TO the report on The measure
fled yesterday by Chairman Esch, Wis,
of the House Interstate Commerce
Committee.
The House bin viii be called up To-
day under q special rule passed las'
night. aud nothing viii be allowed lo
displaco Il untilthe measure is passed
likely early next week
.knMous for a recess before the reg
ular session, the House agreed TO meet
at 10 O'clock every day and continue
in session until 40 o'clock at night,
with recess for e 10 o'clock for
1inner. After ten hours of general de-
bate. The bill will be taken up for
amendment
The committees policy is that The
government shall continue TO guaran-
tee the returns Of The roads for six
months after they arc given back to
their owners. This guarantee, the
committee believes, should be paid di-
rerlly by the people in Increased rates,
III necessary, rather than TO have the
Treasury make mp all the deficit
In view Of the continued deficit under
Federal control, increased rates seem
nescapable under the House bill.
Chairman Eschs report says in part:
TO prevent a railroad from relying
on the guaranty and making no effort
90 increase lis rates until the guaranty
period has expired The section pro-
yides that ihe guaranty shall not be
given TO any road which does not
within sixty days after the termination
Of Federal control nla NTH the Inter
state Commerce Commission schedules
embodying general increases in its
rates
section 2O7 provides that during the
six months following the termlnoiion
of Federal control, the United STATES
guarantees to each railroad at any time
under Federal control that its railway
operating income for such guaranty
period as a whole shall not be less than
lhe average Of Its railway operating
Income for the three corresponding
periods Of six months each during the
three years tes. period ending June 30,
1917. III the road was not meeting eX-
penses during the test period, The guar
,riy is Of the amount by which The
elicit for .he guaranty period exceeds
DE average deficit for the three cor
csponding periods during the test
period.
"To prevene excessive charges 10
operating expenses and for maintenance
1r way and structures OF maintenance
lf equipment The section provides that
hc amount of such expenditures shall
De- limited 20 such manner as 10 cor
espond as closely as may be 10 The
Nerage expenditures for such purposes
luring The test period.
"ln order That the carriers may meet
ihcir fixed charges and operating eX
pensos. the Secretary Of the Treasury
on certificate from the Interstate Com
nerce Commission may make advances
on proper security being given that II
NE amount Of the advance exceeds the
amount Of the guaranty, when that is
ascertained, the difference shall be paid
TO the United States
The report outlines in detail the pro-
visions Of the House bill and then
gives the committees reasons for turn
ng down several proposals. some Of
which are in the Senate measure.
ON Government ownership and the
Plumb plan. The report says:
AS the President early this year
delivered 20 the Houses in Joint session
message in which he expressed his
intention to return the roads TO private
ownership and control by the end OF
the current year, and in view Of the
desire Of the carriers 20 be so returned
nd the Widespread demand among the
eople that Federal control cease as
soon as suitable legislation could be
naeted. your committee has no. rec
ammended Government ownership.
only one bill plumb PLAN has
been introduced at This session pro-
Fiding for United states ownership.
This bin not merely asks that the Gov
crnment should secure ownership and
control Of the railroads, but also asks
for employee operation thereof This
hill IS so radical and the principles so
foreign 10 the fundamental principles
of our Government that 70 was consid-
cred a. impossible"
Notwithstanding this fact. the COM
pittee devoted six days 10 listening 20
its proponents. As a result the com
mittee was all the more strongly con-
WINGED that 1t was not and ought not
10 be the solution proposed to the
House."
Opposing the plan OF a Transportation
board, as proposed by Senator Cum
mins and the Senate Interstate Com
merce Committee, to recommend plans
and policies for the better co-ordina- /
tion OF transportation. the House com
mittee says:
The transportation board. with IFS
members nominated by the President
and confirmed by the Senate. would IN
all probability be made subject to DO
litical Influences. certainly more on than
the Interstate Commerce Commission.
a quasi-judicial body
in short your committee fears that
the creation Of a transportation board
Will result in a division Of authority
and hence IN divided responsibility"
In refusing TO include the outsland-
ing feature OF the Warneld plan-a 6
per cent. Government guarantee on
actual valuation Of the railroads.&c.
committee asserts that such plans have
not met with success wherever tried