Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-04
RAIL TASK VIEWED :
BY Mr.. UNDERWOOD
Senator Presents Taxation
Phase of Problem to
Short Line Men.

Addresses by Senator Oscar Under
wood Of Alabama and Thomas De
witt Cuyler, chairman. and Albert ,.
Thomb. general counsel Of the Asso-
citation OF Railway Executives. the
trunk line heads. who were espe-
cially invited to participate, were
the features of this mornings session
Of the three-day convention OF the
American Short Line Railroad Associ-
alton at the Willard.
That the pressing problems In re-
gard to the future of the roads Is
distinctly a financial one was point
emphasized by all three speakers.
Senator Underwood's Talk
Senator Underwood began his speech
with particular attention to the taxa
ton problems of the country. ana con-
tinued along that line for some time.
This doesn't sound much like rail-
road speech. perhaps" he said. but IL
is lis the very basis OF the railroad
problem Congress must look at the
solution from the standpoint OF the
people; it must visualize America or
Il is today and realize that this liz
not O problem of the railroad employe,
nor of the shipper. nor OF the execu-
tive or security holder. but OF the
great business interests OF America
taken a q whole.
"The short line is mighty important
to the man who lives on 1t or whose
business is on IL. These lines. II NOT
arteries, are. at least. the veins serv-
ing the country's business life. II
the whole bodily function Is not put
on a sound basis then the problem Is
not solved, and when you solve the
| finance angle most Of the other PROD
lens solve themselves.
AN earning capacity eumcient 70
ACQUIRE the capital needed for future
development is an absolute necessity,
and no one but Congress can give you
| the opportunity to obtain TINS. IL
| it doesn't you are gone IN .ne
other hand. if you don't see the other
fellows side OF the question ana ask
| too much you fail again"
I Attitude Toward Congress.
Mr.. Cuyler, one of the executives OF
the Pennsylvania system. said that it
was up to both the trunk and snort
lines to place the railroad situation
| before Congress in a safe and sane
\ way.
our desire is to see the roads sent
| back to private ownership as free ana
untrammeled as possible. with the
| shackles of the past broken and cast
!, aside" he told the convention.
Mr. Thomb announced that the trunk
line men, who are represented In the
conference by special request, feel an
infinite sympathy for and place
great reliance n their colleagues as
the men who now are. and who here
latter are to be, the pioneers In Amer
tican commercial and economic DE-
velopment. He agreed with Mr.. I'm
derwood as to the Importance Of the
financial aspect OF the grave trans
lportation problems and elaborated In
their relationship to the roads the
principles which the senator from Ala
bama had merely outlined.
| The convention will meet again this
afternoon and tomorrow, which 10 the
last day.
Mr.. Hines Urges Consolidation.
Urging that the railroads be con-
solidated into from dozen to twenty
great systems under government reg
ulation sufficiently defiltte to attract
Iprivate capital and, at 70 same time.
to protect the weaker es. the direc-
tor general Of railroa Walker D.
Hines. speaking befor the conven.
ton yesterday afternton. outlined
plans for a permanen4 solution OF
rail transportation problems. Public
ownership Is the only alternative to
this governmental regulation, said MI.
Hines. for under any other plan pri.
vate management Is doomed to ulti-
mate failure.
Under the consolidation plan each
system would include representatives
of both stronger and weaker lines;
their activities would be highly com.
ipetitive, and government represents
ton on directorates would be neces-
sary, he said, adding that excess earn
ings should be divided between roads
and government. while earnings put
in properties should give no basis Tor
Increased valuation. The director
general announced that prompt 60
ton by Congress to provide tor the
future of tho roads IL most essential