The Barre daily times. (Barre, Vt.) 1897-1959, 1919-08-20
PRIVATE OPERATION +.
OF RAILROADS WITH
INCREASED RATES
Proposed by Association of Railway Ex-
ecutives As Solution of the Railroad
Problem--No Guarantee Of In
come or Dividend by,
Government.

Washington, D. c., Aug. 20.-Recom-
mendations of the Association of Rail
way Executives for return of the rail-
roads to private operation under condi-
lions that will insure adequate revenues
and maintain the service to the public
were laid before the House committee on
interstate and foreign commerce to-
day by Thomas Dewitt Cuyler,
chairman of the association.
Congress under the plans would di-
rect the interstate commerce commit
tee. "to approve rates which Wi! enable
the railroads to be sustaining" The
rate regulating authority to be vested
exclusively in the central commission
and regional sub commissions. There
would be no guarantee Of income or div
idends by the government.
Broad regulatory powers would be
vested in federal transportation board
to be created as a co ordinate body with
the interstate commerce commission.
This board, to be composed of three COM
missioners appointed by the president,
would be charged with general oversight
of transportation from the point of view
of the public interest. 1t would relieve
the interstate commerce commission Of
all functions except rate regulation, val
uation and accounting
In regulating rates the commission.
would act upon certifcation by the board
from time to time of the amount of
revenues needed by railroad to pay op-
Grating expenses and a "fair return" on
the value Of its properties and maintain
credit sufficient TO attract new capital
necessary for the expansion of facilities.
1t was believed, Mr.. Cuyler said, the
railroads should have from S700,000,000
to $1,000, 100000 Of new capital an
nually for expansion of facilities to
meet the growth OF population and in
dustry.
The proposed board also would have
authority to distribute traffic when nee
essary to relieve congestion of certain
lines, to require the use Of joint termi-
nails when in the public interest and in
times of national emergency to CONSOLE
date all lines into a unified system. 1t
also was recommended that Congress au-
thorize the consolidation of existing lines
into strong, competitive systems, when
considered to be in the public interest.
The association recommended, he said, a
great unifcation Of public regulation of
the railroads by broadening national con-
troll. II believed, he said, there should
be exclusive national control on issue of
securities and the expenditure OF new
capital Provision for federal incorpora-
tion of interstate carriers also was ad-
vocated
"To avoid the risk of financial disas-
ter" upon return of the road to private
operation, Mr. Cuvler said the railway
executives believed it necessary that the
guaranteed standard return from the
government be continued until il was
possible to restore the equilibrium be-
tween revenues and expenditures and
make the carriers again self-supporting !"
1t was proposed that this readjustment
of rates be undertaken by the interstate
commerce commission in conjunction
with the federal director general of rail
roads and the proposed federal trans
portation board.
BY way of further financial relief for
the roads upon resumption of private OPP
Grafton, it was advocated that their in
debtedness to the government on account
of capital expenditures made during the
period of government control be funded
for 10 years.