Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-01-22
CONSOLIDATION IS
NEED Of RAILROADS
Mr.. CumminS Declares SyS'
TENS Must Have Strict
U. S. Supervision.

That consolidation into competing
systems. under the strictest government
supervision. is the only plan that will
insure private operation of the railroads
when turned back to their owners was
the opinion expressed by Senator AL
bert Il. Cumnns. chairman of the Sen
ate committee Interstate commerce
and fnembcr Of the conference commit
tee now considering railroad lcgisla-
ton, at the monthly meeting of the Dis
trict of Columbia Bankers Association
at the Willard Hotel last night.
Never has mankind been confronted
with more vital problems than now"
said Senator Cummins in opening his
address. and the second most important
question to solve today is that relating
TO the railroads
u have no criticism for those who
have been in charge for the past two
years The transition from private to
government control was the mghtiest
task ever undertaken by the govern
ment, and while there are those who
think they might have done the work
hstter, my answer to them is that they
should have tried il.
Calls Problem ..StnSserinr.-
This is no time to cry about the
past. The whole life of the country
depends upon transportation. y ques-
ton of such ma gnitude as TO be al
most staggering.
The President has ordered the roads
Dack TO their owners, and / doubt
very much whe Their he can rescind
that order But if we send them back
TO their owners in condition where
they would not be able to borrow
money for their maintenance we will
have failed. and it would be better if
We did not do it at all.
Therefore, 1T is squarely up to you
bankers and business men to convince
the American people that the money
must be forthcoming. If you refuse
paralysis of transportation will set in
and they will go back to the govern
ment."
Senator Cummins dwelt at length
upon the great Indebtedness of the
roads to the government and to pri-
vate firms. He spoke of the havoc
which would result from suspension
of transportation, even for short
period. and said that if the railroads
were to continue to operate under
private ownership they must borrow
$500. 00O. 900 this year and $1,000. 100000
next year in order that they may re-
fund longtime Indebtedness.
Consultations Advocated.
He then explained in detail the Sc
ries of consultations which he advo-
Gated for fewer systems of railroads
upon the principle that each will
be able to earn npon the value of: the
property the same rate of operating
income and said that 1t was the
only possible solution of the gigantic
problem He said also that he was
opposed to regional consoildations De.
cause such a plan would tend to cut
down competition, while MS plan
would increase competition, not In
rates but in service.
Senator CumminS struck Sympa-
thetic chord in the hearts of his audi
III n n
said: strikes must cease. wage
workers engaged in public service.
policemen. firemen. railroad employees
have no right to imperil the lives OF
their feIlowmen by strikes
II have always been friend OF Ia
bor. but the time has come when, for |!
the safety of the whole people, the |
strike which makes proper transpor-
tation impossible must be made I'M !
lawful.
lished where all concerned will get a |
square deal and the time is not far |
distant when il will be unlawful to |
conspire for the purpose of enforcing !
demands by interrupting transporta- |
ton"
Others Speak.
Richard f. Dawes. president of the !;
American Banking Association. who is |
in Washington attending the sessions |
ference asked the senator to use his |
influence to see that the conferees !
provide a statutory rate of return on |
investments of the railroads. Mr.. |
Dawes was confident that the 1920 |
of the association would |
be held in Washington.
NJ d. Rosenberg, president of the To- |
cal branch of the association. presided
at the meeting, and after reading
report of the wonderful growth of the
association throughout the country,
there being over $1,000 member banks
now enrolled. introduced William
Knowles Cooper, who made a brief
address on the great success of the
thrift campaign now being conducted
all over the United States. Mr.. Coop
er has just returned from Chicago.
where he said the enthusiasm was
tremendous.
Victor c. Deyber. president of the
local branch of the American Insti
tute of Banking. a junior branch of
the American Bankers Association,
gave a detailed report of the work be-
ing done in Washington, and on mo-
ton of Robert y. Harper, president of
the District National Bank, and
amended by John Poole. president of
the Federal National Bank. resolu-
ton was adopted by the parent Or
ganization donating $500 to Mr.. Dey-
40