The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-14
900 AT TESTIMONIAL
FETE TO WAKEFIELD
Railroad Securities Owners
Hear Their Presidents
ideas for Future.
ESCH ALSO A SPEAKER
Says Belief Is Erroneous That
Roads Are Guaranteed 6
Per Cent. Return.
ESCH ALSO A SPEAKER

Fifty million persons in this country.
savings banks depositors. holders of In
surance policies and owners of securi-
ties. are vitality interested in the welfare
of the railroads of this country. Nine
hundred prominent business men. rep
resenting these fifty millions. gathered
last night in the ballroom Of the wal
dorf-Astoria to do honor at testimonial
| dinner to the man who, speakers de-
! clared. had done more than any other
to promote the prosperity and general
efficiency of the carriers.
But S. Davies Warfield, president OF
the National Association Of Owners OF
Railroad Securities, the man they hon.
ored, embarrassed by their applause,
! skilfully and hastily drew their attention
from himself to the work which the
association had done and the great work
which yet remained
| M. Warfield declared a national pub
! lie corporation was badly needed to
/ finance equipment for the railroads
without profit through excess earnings
of the railroads going to the Govern
!
Of the Government. This. he said. wouiu
be for the best interests of public. ship
pe-s and roads.
Author OF New Law Speaks.
An address outlining the transporta-
ton act and giving exact information
concerning the multitudinous problems
of the national transportation problem
was made by l.. ). Representative John
]. Esch, chairman of the Interstate and
Foreign Commerce Committee OF the
House. and coauthor of the Esch-Cum-
minis bill. NJ. Eschs address was long.
but he succeeded without difficulty in
holding the attention of the diners who
crowded the floor and even the bal
comics of the big room.
Mr.. Warfied announced that the at
torneys of the National Association OF
Owners had reported that Congress had
clearly the right to empower the com
mission to prescribe rates within
State which are a part of the general
rate structure which the commission
considers essential to maintain trans.
pcrtation as a whole. the objections Of
state commissions Notwithstanding.
In connection with the consolidation
OF railroads of the country, as required
under the transportation act. Mr.. War
field declared that too rapid a procedure
along these lines would prove unsettling
and would retard what has already been
accomplished.
MIR. Esch in his discussion corrected
the impression. which he said was wide
spread. that per cent. is guaranteed
the railroads under the Transportation
act
1.-THE return Is based on the aggregate
value OF the roads taken countrywide or
by territories" he said. Few roads
would. under existing conditions. earn
per cent. on their proportionate share
of the total valuation. Some would earn
/ per cent. per cent. or per cent.
Some may not earn their operating ex-
penses. 1t Will be left TO each road to
earn what il can, and through initiative.
economy. efficiency and foresight to In
crease its earnings"
He pointed out that the Government
would receive half of any excess over
per cent. and could use this excess in
loans at 6 per cent To the weak roads.
This. he said. would prevent excess
profits. The Plumb plan, Mr.. Esch
said. Is more than Socialism smacking
of Sovietism.