Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-01-08
'SHIPPERS' CONFERENCE
URGES EARLY RETURN
In, RS TO PRIVATE OWNERS

Chicago. Jan. s-opposition to
guaranteed earnings for the rail-
roads, appropriation Of surplus rail-
road profits by the government.
thereby ''penalizing efficiency" and
compulsory consolidation OF the
roads is expressed in a memorial ad-
dressed to Congress by the NATIONAL
Shippers Conference which includes
most Of the large manufacturers,
producers and packers of the coun-
try.
Representatives of shippers from
Is states met here Dec. 20, and ap-
pointed a committee to draft .the
memorial. copies of which were mall
cd to every member Of Congress TO-
day. In it any provisions OK the
Cummings railroad bill are attacked.
The shippers urge passage OF leg
tslation for early return of the roads
TO private control: favor retention OF
the state commissions to fix intra-
state rates. but oppose creation OF
he proposed Transportation board
because it could invade the interstate
commerce commissions fields and
could make public resolution In ad-
vance cases without the necessity
of conducting public hearings"
The creation of an additional federal
board was characterized as unnecessa-
~ BY the shippers. who declared that
| the commerce commission merited the
| continued confidence of the people and
that its powers had been added to SO as
! TO enable Ii effectuaily to deal with ma
| tionai transportation problems.
| The memorial asserted that the COM
| merce commission was not overburden-
| ed with work as had been charged. and
! that should the time come when it was
unable properly 10 function subordinate
! commissions could be created or addt-
tional facilities granted.
| Though opposing a permanent guar
anty Of returns as provided In the Cum
mings bill. "or otherwise" the memo.
rial said there was no objection to a
| continuation of the standard return
! provided in the railroad control law for
| such time as might be found neces-
sary In the present transition.
Tho Cummings bill. the Memorial
|
government gratuity of five ane one
! half or six per cent to the railroad
companys. which per centage might
be a modest return in a private in
dustry, but large on securities guar
anteed by the government"
A guarantee of six per cent on the
book value or so-called property
| investment" of the roads. it said,
would compel an increase in the
present standard return Of more
than $4,000 600 annually which
amount would not go into additional
equipment but to the security hold
ers. This proposal was being made,
it added, at a time. when other in
dustries were being condemned fol-
attempting to increase the charges
and when labor was being asked to
refarin from demanding wage in.
creases."
1--WE oppose the appropriation BY
the government of the surplus earn
ings," the shippers said, land we OPP
pose limitations upon the earnings
Of any railway company as provided
in the Cummings bill"
| Compulsory eonsolida ton of the roads
Is opposed because 'if we compel the
railroads to consolidate and then guar.
antee their earnings, such a thing az
competition in service will be demon.
| alized'
| On the labor situation the shippers
say: THE public, being wholly depeh.
dent upon the continuous operation 81
| our common carriers W. arc In fayn,
of the enactment of legislation that will
enectually prevent that catastrophl
that would follow a general railroad
strike and which legislation will at the
same time fully recognize the just re.
ports Of the labor and all other parties
| in intorpSf