New-York tribune., 1920-03-01
Railroad Men
Encouraged by
Enactment of Bill
Responsibility for Success
of Measue Rests With I.
c c., Executives Say;
End of Uncertainty Near

In commencing yesterday the main
features of the railroad bill as passed
by both houses of Congress, William
IL. Truesdale, president Of the Della
ware, Lackawanna Western Railroad.
declared that the treatment of labor
contemplated by the Esch- Cummins
measure should have been accepted by
the brotherhood leaders,, as it was
"The new railroad bills" said Mr..
Truesdale, "is reassuring in that it rec
ognizes that the railroads have the
right to be accorded rates that will
cover their expenses and fixed charges
and protect their present dividends 1t
requires the Interstate Commerce
Commission to establish rates that will
yield the roads 6 per cent or better for
Two years. 1t also will provide for the
continuance of the Federal guarantee
over the next six months, which is q
helpful feature
Concerning the greatly extended
powers of the Interstate Commerce
Commission, the chief fear in this con-
nection is that the commission will be
loaded with more than it can carry
and do justice to the public and the
railroads. In giving the Interstate
Commission great latitude on the mat
properties it is conceivable that dis
agreements may arise. 1t is to be
hoped that the membership of the COM
mission will be increased with strong
and able men"
Samuel Rea, president of the Penn
sylvania Railroad, stated that it was
beneficial to the country that the rail-
road bill has been passed, thus remov-
ing it from the arena OF political dis
cussion.
eve will do all in our power to make
the bill decidedly constructive mea-
sure in practice and beneficial to the
public, the employees and the owners
of railroad securities" Mr.. Rea added.
"But the main possibility for it's sue
cess rests on the Interstate Commerce
Commission in fixing valuation of the
railroads. in having liberal views on
railroad consultations, and above all,
in assuring that railroad credit is kept
so sound through reasonable earnings
that new capital for the expansion will
be available at all times, and that rail
road expansion can precede business
demands and it's lack not be an obsta-
Gle to future progress.
ut will be a great pleasure to get
down to the important business of
giving the public reliable transporta-
tion service, and we rely on the hearty
cooperation of the owners and employ
eees of the Pennsylvania system to
maintain its past standards Of eff
cheney, courtesy and reliable invest
ment return"
Commenting on the bill from the
standpoint of the. investment banker
Pierpont V. Davis, vice president of
the National City Company, said:
"The passage Of the railroad bill ter
inmates trying period OF uncertainty
which has adversely affected railroad
security values. The bill contains pro-
visions which should go far toward re-
storing railroad credit, and when in
vestors are further encouraged by a
revision of tax laws the development
of broad demand in railroad bonds
may be confidently looked for.
THE Interstate Commerce Commits
sion, which has been a body of great
power. now becomes one Of the most
powerful tribunals conceivable. How
the commission will interpret some, of
it's new powers will be matter Of
the deepest interest. Congress has un.
questonably acted toward the railroads
in a friendly spirit. II the commits
sion is equally just and friendly the
investor should again regard railroad
issues with favor"