The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-01

powers in the State commissions will be
| doubted by many, as well as the pro-
posal TO constitute six regional commits
sions in addition to the present Interstate
Commerce Commission. In so great an
enterprise there should be a body Of
appeal Questions at issue are often
vital to the business Of the country as
well ms to the owners OF railroad Sc
| curities. and division OF responsibility
should be provided. Furthermore. II is
not possible for nine men sitting In
Washington to have the personal touch
with the various sections of the coun-
try the situation requires A large part
of the work has heretofore been appor-
toned to examiners who visit sections of
the country for the commission. BY es-
tablishing regional commissions. whose
members are residents Of their respective
districts. a more thorough service Is se-
cured and one close to the seat Of opera
tons. and in touch Herewith.
1.-The two great observation-disclosures
ence by intrastate rates with the inter-
state rate structure and the placing of
security issues under the regional com
missions or the Interstate Commerce
Commission--being provided for under
the plan the States should have their
rights preserved TO them under the re-
strictions provided In the plan.
Authority begets responsibility when
properly lodged. When the Congress by
act has applied the yard stick to meas
ure the application Of such authority, the
, Interstate Commerce Commission. to-
gether with the regional Commissions,
coordnated with the State Commissions
will give the country a complete regula-
| tory system"
A fixed rate OF return: The plan
| provides that the present freight and
passenger rates State and interstate.
shall remain in full effect unless. upon
investigation by the Interstate Commerce
| Commission. il Is ascertained that the!
do not provide or more than provide the
return on property investment fixed
under the plan. in which event the Inter
state Commerce Commission shall imme-
diately adjust the rates necessary 10
produce the revenue required thereby.
During the period from the passage OF
| the act to the date named therein for
the return of the railroads. the commits
sion shall, as far as practicable. adjust
the rates under the plan.
The act shall provide that such rates
for freight and passengers shall be es
| tablished as will. as nearly as may be
produce fixed rate of reasonable re
| turn upon the combined property invest
ments accounts of the roads in each OF .he
| three classification territories.
iRuIe to Govern Earnings.
The earnings that will accrue to the
! individual lines, under rates to be cs-
tablished as provided. will at least en-
able the railroads to pay their fixed
lNN,o nd 1tA Ji..tl Il
by them during the test period from,
their railway operations. except In a
few instances in the consideration OF
| which powers shall be conferred upor
the Interstate Commerce Commission.
! The commission shall establish in the
six regional districts certain operating
standards of efficiency. and whenever
any roalroad or railroads shall affair
such standard then the commission shall
make provision for such railroad to re.
ce!ve greater proportion OF the excess
earninss than the percentage herein
mentioned. to he applied to improve.
ments in or additions to its railroad
properly. but not to be capitalized FOR
the purposes OF rate making in deter.
mining the fixed return.
The Fund.
| The fund created through excess earn.
| ingS reduction provided for shall be held
under the supervision OF the Interstate
Commerce Commission. 1t may be dis
tributed, viz. 80 13 per cent as a fund
to be distributed for the benefit OF tn.
employees OF the railroads under the
plan. 81 1-3 per cent. returned to tn.
railroad company for such uses az Il
may determine. and 33 LIS per cent held
In the fund to be devoted 10 the purpose.
provided under the plan under the direc
ton of the Interstate Commerce Commits
sion or used as hereinafter provided.
The act OF Congress shall provide thai
there shall be A distribution OF a portior
of the fund created through the opera
ton of excess earnings reduction be
tween the employees and the railroads
in the proportions above named or IL
such proportions to each as shall be de
termined after taking care of the re
quirements of the plan. including tn
fixed return on property investmen
herein provided for. plan of insuranc
for the employees OF the railroads ma,
as an alternative be substituted !nstea,
of profit sharing.
Mr. Warfield here interpolated thee
rerns rks:
III the time comes for threatene,
strike because increase OF wages IL den lie,
the commissions can then properly point 4