Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-01-07
|. c. c. IS OPPOSED
T0U. S. OPERATION
il OF RAILROADS NOW
Expresses Opinion in State
ment to Senate Interstate
Commerce Committee.
REASONABLE TIME FOR
REIMBURSEMENT FAVORED
Proposal Of Railroad Executives
Will Advocate Even Wider Reg
ulation Than Commission
Suggests.

Opposition to government ownership
or operation of railroads at this time
vas expressed today by the Interstate
Commerce Commission in q statement
presented to the Senate interstate COM
nerce committee, at its hearing on
railway legislation, by Commissioner
Edgar E. Clark.
Considering and weighing as best
We can all Of the arguments for and
against the different plans" said the
statement, I'VE are led to the conyic-
ton that with the adoption of appro-
pirate provisions and safeguards for
regulation under private ownership,
1t would not be wise or best at this
time to assume government ownership
or operation Of the railways of the
country"
Favors Reasonable Wait.
The commission declared. however.
that "a reasonable period Of readjust-
ment or preparation" should be al
lowed before relinquishment Of fed
era1 control.
at seems obvious" said the state
fnent, that no plan Of private owner
ship should be considered unless 1t is
Under broadened. extended and am
piified government regulation"
Woolley for McAdoo Plan.
Commissioner woolley dissented
from the recommendation against con-
tinuatfon OF. government control and
advocated adoption of Director Gen.
eral McAdoo's suggestion for extern
sion OF federal management
The commission presented detail
ed program Of proposed legislation in
case the railroads are returned to pri-
yate management. providing for strict
regulation by the government of
rates, services. linances. security is
srss .sa pooling sSs,.s Sa fasilisiss and ID
between federal and state authority.
1ailroad Mems Plan Next.
The vxoposai Of the railroad execu-
Tires. 70 b presented to the commit
Aee prCbab1y tomorrow, Il similar ia
GENERAL scope to the Interstate Com-
tnerce Commissfon's Recommendations.
Il was stated today. The executives,
however. advocate even more regu1a-
tory power for the government than
the commission suggests.
Objects to Financial Dictation.
Advocating emancipation of railway
operation from financial dictation. the
statement said:
"A transportation lire operating by
virtue Of q public grant, and upon
which the Industrial. commercial and
social life OF communities depends,
tion."
As corrollary. the commission sug-
gested regulation Of security issues by
the government.
Harmonious relations between fed
efal and state regulating bodies can
os effected: the commission suggested,
II the federal tribunal could be au-
fhorized to cooperate with state au-
thorities by utilizing their services in
appropriate instances and to an ap-
propriate extent"
With pooling Of facilities, the COM
mission believed there need be no diff
ference in charges between competi-
tive and non-competitive traffic, since
carriers could be compelled by gov
ernmental authority to provide them
selves with adequate equipment.
Discussion Of Rates.
Discussing rates. the commission
eaid that adequate service is more
important than minor details of rate
charges. Patrons of the transporta-
ton companies must pay rates that
viii yield revenues sufficient to JUS
fify rendering the quantity and char
Geter Of service demanded"
Although dissenting from the rec
ommendation for return to private
arrangement, Commissioner WoolIey
said that If the roads are relinquished
lie presented additional recommerida-
tons, including the proposal that the
Interstate Commerce Commission be
authorized to adjust rates and en-
Jloyment conditions. Railroads also
should be sequired, he said, to set
aside fixed portions of their incomes
for depreciation.
Gives Reasons for Extension.
Among the eight reasons presented