The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-04-21
SUBMITS PLAN
FOR GROUPING
OF RAILROADS
Expert Says Consoli-
dafion Would Solue
Problem.

AilouCiPAARp ADAoSAoo
ing railroad problems before the
American Philosophical Society
here today, Emory r. Johnson, dean
of the Wharton School of Finance
and Commerce of the University OF
Pennsylvania, widely known trans
portation expert, said the govern
ment should proceed promptly with
the formulation and publication of
plans for the grouping of railroads
into limited number of competi-
tive systems of comparatively equal
strength. Railroads, he added,
should be encouraged in every way
practicable to carry out these plans
for consolidation.
ANY discussion of the transpor-
tation problems now confronting
the American people," said DR..
Johnson, must be based upon the
assumption that railroad transpor-
tation can be successfully develop
ed only by adhering to private own
ership aid operation. If the peo-
pie of the United States become
discouraged or bewildered and
adopt government ownership,
American railroads will gradually
pass into a state of coma, and over
industry will slowly come a creep
ing paralysis.
''The outstanding problems of
the hour in connection with rail-
roads include:
Il. The necessity for the fed
eral control of both intra and
interstate railroad rates. This
question is now before the supreme
court Of the United States, and it
is earnestly to be hoped that the
court will find constitutional that
provision of the transportation act
of 1920 which gives the interstate
commerce commission the power to
change state rates that interfere
with or adversely affect interstate
rates.
Would Consolidate.
"2. The consolidation of rail-
roads in accordance with a plan
worked out and promulgated by the
interstate commerce commission
for the purpose of eliminating from
the railroad family those weak SIS
ters whose insolvent condition
makes them a burden to their
stronger brothers and to the pub
lie. This is problem of the near
future of the newt 10 years.
|, "3. The federal Incorporation OF
all railroads engaged in interstate
commerce and the consequent sub
ordination of the railroads as cor
! portations to the United States gov.
! ernment. Federal incorporation
should run on all fours with con.
solidation. 1t, thus, also becomes a
problem of the next 10 years.
=. The development of execu'
tive machinery for the constructive
regulation of railroads and for the
development of unified system O1
transportation by railroads, high,
ways, waterways and possibly by
airways. This is a problem of the
next 25 years during which perioG
all the agencies and facilities O.
transportation should be welded to-
gether into a unified system serving
all parts of the country with
maximum economy and efficiency
"A brief diagnosis of the presen
railroad situation leads to the fol
lowing conclusion:
THE cost of operating and of ex
tending the railroads must b.
brought down, and this can be ac
complished only Q) when the rail
road executives regain control owe
the management of their business
and (2) when the costs of supplies
equipment and new plant are mad
as low as moderate profits on thu
part Of producers will permit. Thi
reduction in the cost of railwa,
supplies, equipment and plant ma,
be expected to accompany the re
turn Of industry to more norma
conditions"