Evening star., 1920-05-29
RAILROADS FORGET
| PUBLIC, IS CHARGE
w. A. CoISton of !. c. c. Tells
Association of R. R.
Executives.

Railroads. are forgetting their first
duty-that Of efficiently serving the
public-in consideration of how the
governments $3o0.000.00O revolving
fund can best be distributed among
them, w. A. Colston. director of the
bureau of finance Of the Interstate
Commerce Commission, told members
Of the commission and Association OF
Railway Executives at the opening
hearing today on apperttonmen,
among the carriers OF the 'oan pro-
vided for under the transportation
act.
1.-THE railroads 80 far" said Mr. Col.
ston. have been laying undue en-
phasis on their own financial condi-
ton and need Of aid. and have for
gotten the primary purpose for which
the fund was created. that of i'm
proving service to the public The d.
vision OF this fund creates two prob
lens, first. that of immediate action
and second, a definite plan Of distribu.
ton"
Weaker Roads Needs Greater.
The distribution cannot be made on
the revenue returns from the rail-
cause the weaker roads. with the
smaller returns. are in greater need
for financial aid from the government
than are the larger and richer sys-
TENS. Neither can the distribution
be made on the per-to-mile basis, he
said. The fallacy in this latter plan
is seen in the instance Of small
road, which would receive a few hum
dred dollars under the per-to-mile
plan of distribution. where this same
at several hundred thousands of dol
lars.
AS a means OF solving the difficulty
presented by the short-line railroads
In receiving their part of the revolv-
ing fund, Mr.. Colston suggested these
bulk sum to be appropriated for the
short-line roads. Then let them di-
vide this among themselves" he said.
Mr.. Colston secuted the heretofore
suggested plan Of forming a federal
equipment corporation.
Cooperation Plan Advanced.
Instead. he advanced q tentative plan
for the creation Of a private corporation.
formed by the advance of $l25, ,000. 900
from the government and a suggested
$25, 900, 900 by the railroads This WOULD
prove a sum Of $150,000.000 cash upon
the start, he stated.
Stock in the corporation. he suggested,
could be deposited as collateral security
for the loan. A voting trust. he stated.
could be formed with representatives of
the railroads. the Interstate Commerce
Commission and a representative of the
Secretary Of the Treasury.
T. Dewitt Cuyler, chairman Of the
Association of Railway Executives. laid
before the commission the program filed
earlier in the month. giving in detail the
requirements of the carriers for appor-
tionment. betterment and purchase of
equipment. Mr.. Cuyler also opposed the
formation of a national or federal
equipment corporation, and he recon-
mended in its stead separate corpor-
alton. created to finance the purchase of
needed rolling stock for each of the
lines.
E. W. Brown. speaking as chairman
of the equipment committee Of the
Association Of Railway Executives,
said the whole country, and not the
individual lines. must be served in
providing equipment The freight
car is a migratory bird" he stated,
and travels throughout the country
on every road. Therefore the own
ership of such equipment is not of
primo importance-it is a question
which can be settled later. he said.
The thing to do at present is to pro-
vide this equipment. The strong
roads must help the weaker lines, he
said.