Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-01-30

u Protect TIE PUBIC
Louisville. Ky. Jun. z.-wAlrar =.
lines. dtrectnr general Of rail-naAe, ip
N address before the Transportzricn
Club here tonight. urged the necesizv
u division Of excess earnings of -sf-
roads above a reasonable return IN e.-
der &c protect the public against excess
earnings NJ very prosperous railroad
and n order 70 insure fair return 10
IL railroads
Those VINO oppose rhR piE1 seem >
assume that II will operuse As dis
cnurASelnen- upon prIvate capitai." ST.
Ar Hines They seem To assume thu.
L Ehe plan Is not ADOPTED there vii pc
Ii cfscou-assrnent Of private capita.
suI -hey should remember the discpur-
aSener-s which have existed heretofore
The real question rs whether "a psa1
shall be adopted which viii both Pre-
tecr the pubic interest and REASONABLE
protect private capital or whether en-
the other hand, 4 Plan shall De sdopted
which will fail 70 do either with Any
degree Of ga -isTaccinn
Mr.. Hines decis-ed mis- belief tina
unless the railroad yrvbie-n III the pres
snI time IS dealth with IN q bold an.
effective way the --ruu 70 privase
management after federal cprtrui Will
he wholly disappearing
The director general also urged he
compulsory organ izarian o. the rail-ca1
systems Of the Country Intp few sys-
LENS and suggested -hs pa-ricipar ion ~
ne public and labor IN management az
the raIl-ua6
Ma Gen. Leonard wooe who is vls-
ling Louisville on Al inspection "Trip.
WIS another speaker al the banquet III
his discussion of the railroad rate aues-
tion and the reorganization Of the rail-
roads which ne believes necessary afts-
government control. MI Hines SAID,
On the basis Of my y years eXpe-i-
ence with railroad regulation -he Inst
two years Of the period berng n the
public service I wish To- express IT.
views as 70 some of the fundamentals
necessary TO successful SOLUTION.
-'In1eIlisent consideration viii be
greatly aided by recalling the conditions
OF railroad regulation as they existed
in ISL and as they will again exist IN
Ger private control unless fundamental
changed by new legislation,
In 1917 railroad executives werc
profoundly discouraged as % the COL
aitions Of railroad regulation. Thev
found extreme difficulty II proving u
the public satisfaction what they re
Gard-.d as their absolute necessities
n the way II Increased rates .-nd
they mad no satisfactory method OF
dealing with the labor problem
which were constantly becoming
more pressing Both rates and sery-
ice We're being regulated by tedertll
and state executive bodies and com
missions. Common action was much
easier for the labor organizations
than II Was for the railroads. TIL.
result WIS that so-called p-Ivrte
management Of the railroads was rs
ci4rded by the executives themselves
as largely fcuratire because the
felt thai 10 Z great extent the man
aeemerr was virtually taken OUT ~
their hands.
The question now Is shall the rail-
roads De returned To substantially the
SANE regulation which had proved 80
aIscouraeing 1T 1917 or shall changes
ne made sufficiently fundamental t.
remove the difficulties or the ques
ZION.
Broadly l believe that .nlsss rhesc
matters be dealt with II bold and
effective wy Ihe return TO pr!vaL.
management viii De wholly GisaI
pointing ! believe that no p-uup-
confident Ind liberal regulation or
tne railroad viii pe pr2cricable IN
less PROVISION is made for inreres-
Of the House, regarding me earning
q railroads.
The read uEtmert Of ares a. thu
present time 10 ESTABLISH The cred
OF All Inc railroad companies opera
ing independently ant or their SCI
arate responsibilities viii De an ex-
ceeeinEiy 1lficu1t martcr because the
abnormal conditions Of the past TWO
years make II difficult ID draw an
satisfactory conclusions as 10 tn
actual earning capacity Of the rail-
road az the moment
The public Is also likely TO CON.
TO realize that under q continue
uniformed control q large inc-ease
IT rates would not be necessa-y
Therefore. the proposal for the lars.
increases in rates which probably VIII
be necessary to establish and sustain
the credit of the railroads separnteIe
under private management is Likslv
10 BE- met by strenuous and plausible
objections.
II such L situation the prospect Of
obtaining The necessary increas Sc
viii De greatly improved BY the ptan
which ! recommend because all vii
app-eciate tfiat Il for any reason or
airy railroad, or generally. II should
rur- out thai rate increases prod8c.
more than is sufficient the excess
viii go largely 70 protect the pubic
interest rate rather thar 70 give tbs
private owners an unnecessary bece-
fit.
Il regard II as = very impor-ar-
par Of tins plan to leave 10 the.rail
road companies sufficient proper
tfcr Of tbs excess earnings to stinu-
late their efficiency IN the public III
terest but beyond this poiut / believe
, the plan Of division Of earnings
which I propose is essential to tn
due protection both of public inter
est and Of all legitimate elements Of
private interest.
Those who oppose this plan seem
u assume that II will operate as 4
Giscourassmenl upon private capita
They seem 70 assume that II this
plan is not adopted there viii be no
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