The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1919-03-28
OWNERSHIP OF RAILS
OPPOSED BY CUMMINS
Hut Itsi--S on "StriCtcst" Gov
Crnmcntai Regulation
CONSOLIDATION SUGGESTED
Eighteen systems InOuRh 10 Insure
kccn ,"mp"titlon and Absorb
NcBkcr systems lie A-rrrr.

bES MONIES. Iowa. March - .--
ftNats operation OF railroads. 'un-
uer sfflCtcAt governmental control
Vas aiyoottoI by Albert b cum
minis loWaE senior l'nitcd States
toHajpI In an address "a q Joint reH-
sion of the state legislature this
afternoon.
Nj Cumm.us who vas the rank
.ng rcpuhlIcau member ~ the Ton-
ate IutorrHlHlc commerce committee
90 the lau congress. enumerated
three principles previously cited by
him. which he thought should b"
accepted in the enactment Of any
fundamental legislation
'F.ts' The return upon the cap
.lhl invested In TnIlwayn should be
made certain through q government
undertaking ar guarantee
Second Tho railways should be
consolidated into comparatively few
sJstemH not more than 49,
Third The railways should he
operated by private corporations or
gan.zed under an act Of cungrcAs ~
The senator declared tho read Just.
ment of the relations between tho
government aud tho railroads la by
tar the most important ana most
diftcuIt of the many problems of
reconHtructlOn, with tho possible cR
pcptiun ~ the league ~ nations
- look upon transportation ny
railways Hs governmental func.
ton" he continued "Wnether the
government can best perform this
function through tho government
owncrNhip and operation OF railroads
or through the inslrumcntalitics of
private corporations under public
control Ia entirely n matter OF sound
Judgment and wise diHcretl Ion
The speaker cited figures to show
tho disparity In the earning capacity
ot the various railroads During
Isf6-l6 II. ranging from operation
~ loss 10 IL not operating income
of more than 10 per cent upon tho
investment" account
'"ro Increase rates 80 thcee weak
roads carrying about 20 per cent OF
the country's traffic, will become
self sustaining and able 10 finance
themselves" he continued. would
give 10 the roads which do u per
cent OF thu business revenue which
the commonest sense OF Justice
forhids
The weaker roads must he merg-
I'd with the Htrongest onoa into com
petitve systems which can endure
upon substantially even terms
am not In favor OF regional syEteUs.
for we must at all hazards p-rpetu-
ate competition In service and with,
say, ~ systems experts agree com
petition would be even more keen
than when the government assumed
control
1T 10 possible to take railway cor
porations already In existence and
work out the plan with them but
my own conviction Ia that the safer
and hotter method is to put each
Of these conso olidated systems In the
hands Of a federal corporation"
Referring to his first principle"
Senator Cummins said the return
OF capital Invested should he guar
Rnteed by the government as II In
highly desirable to remove for all
time the demoralizing. corruptina
struggle between the owners and rep
resentatives OF railway property ana
tho public, especially that part Of
The public directly Interested In
freight and passenger charges that
the hpncst investment In railway
properties IL entitled to protection.
and tho public IL entitled to fair
treatment II In impossible to con
oeive OF any revision OF the law that
will accomplish these things with
out the elimination OF tho contro.
Versy relating To the return upon
capital
In regard 20 the third principle