The Washington herald., 1919-05-17
REGIONAL PLAN I
RAILROAD HOPE
War Has Convinced Major.
ity of Thinking People,
Holland Says.


About that time George W. Per
kins In an address before the men,
oeys of Harvard University suggest
cd that II Il were possible to incor-
P"rate the larger corporations un-
der federal statute and thea to pro-
vide for q competent governmental
posrd which would have authority
To regulate and oversees the opera
lions Of the corporations much of
the difficulties as we'll ns frictinn
whica had been occasioaed by the
crest:on and operation OF large COM
hinations into united systems would
be eliminated
Earlier z. II. Hartman In private
had spoken to his friends of the
expediency OF federal Incorporation
Of the railroads. at least those
whose rails crossed Stat, lines.
When these suggestions were
made they were not favo-ably re-
ceived- Suspicion was aroused lest
the managers OF the large corpora
tions and the railroads had con-
cealed under the proposition that
federal incorporation be established.
some plan which would work TO the
detriment of tho public.
The war which has changed so
many things and so many relations
and especially the government ad-
min.stration OF the Ame'i ,ap rail-
roads have taught the public a les
son which. vary likely. tn. new
Congress. which is to assemble next
week. will heed
Government Administrnfton-
In fact the taking over by tha
government Of the American rail-
roads and the attempt to operate
b.,
several lessons.
First Of all IL has demonstrated
apparently to the great body OF
the American people that govern
ment ownership. especially by a
ration made up not only OF the
federal government. but also OF
sovereign States. is doomed to dis
astcr.
T!ut on the other hand the ad-
ministration by the government OF
the railroads has tended more and
more to the belief that the best
method of operating and directing
American railroads will involve
combination. the establishment of
the regional or zone systems. under
private management subject to
strong and adequate governmental
regulation
1t would not have been deemed
possible at the time President will
son was first inauRurated to per-
suade Congress so to Iegislate as TO
perfect railroad combinations In
the form of regional systems.
Nevertheless. something of that
kind was recommended fifteen years
ago by Edward Fl. Hartman after
he had demonstrated the value of
combination within certain regions
between railroad companies.
what Congress. VIII Do.
. The railway managers are begin
hing to be persuaded that the time
Is not distant when Congress will au
thorfze the return Of the railroads to
their owners.
But in addition to doing that Con-
gress. II is also believed. will author
ize the establishment of regional sys-
temS.
Some OF those who have been fore
most in their criticism OF railroad
management - as, for instance. the
brilliant Sentor from Iowa. Mr.. Cum
mins-aro now understood to be in
partial. IL not full. agreement with
those who advocate the speedy res
toration of the railroads to their own
er<.
So also the impression Is gaining
ground that as soon as possible after
the new session Of Congress begins the
railroad question will be taken UP
and il viii speedily be discovered that
majority sentiment in Congress Is In
favor OF the regional plan. and pos
sibly may be found TO be in favor OF
Federal Incorporation.
The railroad situation as II exists
today Is chief among the obstacles
that stand in the way of the great
prosperity that the nation should COM
|uand
The Regional Plan.
The so-called regional plan. railroad
executives say. means the unification
Of various heretofore independent rail
pad systems within n certain re-
gion into n single combination.
It has been demonstrated over and
1ker again. and has in fact been
demonstrated BY the governmental
Operation OF railroads. that unifica-
tion OF this kind makes possible great
economies in management. better IA
cilities for the trans-shipment OF
freight. and does not involve the
necessity for increase In rates.
should there be such necessity that
would be due to other reasons.
Howard Elliott. who Is now regard
Id by many as the leader or among
Ehe three or four Of the ablest leaders
n railroad operation and who Dos
esses a profound understanding of
he relation of the railroads TO
he railroads to the public and of the
public to the railroads. has devoted
Every moment he could spare from
Ais important duties to a study of the
question and has in many addresses.
Especially the one delivered a few
Iays ago. expounded his understand
ng Of the railroad situation and the
manner ins which the railroads car
,cst be utilized to serve as the great
,rteries OF commerce.
What he has said and advised may
BE- the basis of expected action by
Ongress.
Mr.. Elliott in speaking this morn
ng Of the proposed regional system
He'd New England to illustrate what
meant by that. New England
,ealIy should constitute with certain
Notifications and additions a single
legion or zone.
The hauls of its railroads are
hort. There is duplication of serv-
and therefore waste. There Is
OF one great and adequate terminal.
Tut several. But in order to make
N New England an ideal regional
ystem Il is in Mr.. Elliott's view es-
entiaI that the New England sys-
en- be brought into association.
wen combination. with one or more
n the great trunk lines which run
rom the West to the Atlantic sea-