New-York tribune., 1921-03-21
National Service Agency
to Buy Equipment for
LinesUrged ON Congress
by Holders of Securities
Board to Conduct
Joint Financing
Pooling of Terminal Fa.
cilities, End to Wasteful
Competition Also Asked

o1Ai>NA YIN, March 2O.-On be-
half of the National Association of
owners of Railroad Securities. which
speaks for the great institutional in
Vestors-the life insurance comnan;es
and the savings banks-S. Davies War
neld' president, tomorrow will file
with Senator A. B. Cummins. chairman
OF the Senate Committee on Interstate
commerce, new plan for running the
nations railroads. Unless more inton-
slVe and economical methods of onera-
t'on are employed, Mr.. Warfeld con-
tends that government ownership
Which he believes is distasteful 70 tho
majority Of Americans, will become
inevitable.
Inc national association played an
important part in the writinc Of tho
Esch-C -Cummins act last year. and Mr..
,W:arheld, in printed statement out
lung Ihe new suggestions, says that
tne a ace would have been success but
lor oecllnlng tonnage, and makes new
recommendations which he believes
necessary to bolster up the present
legislation. Part of the new plan was
urged in 1919, but Congress did moi
act upon it,
Would Coordinate FaciIitie,
The existing machinery of transpor-
aoIon' says Mr.. Warfeld, should be CO.
oIalhated as far as practicable through
ene organization, by act of Congress,
agency, first, to purchase cars and
otner equipment to be furnished to the
ra1lroads on an economical basis, with
OUT profit; and, second as, the means
LOT coordinating facilities and service
a summary of the plan follows:
The Interstate Commerce Commits
SION to select five from among it's mem
bers Der to constitute the service division.
!hls division to have supervision and
lnltlatory and regulatory powers, to be
exercised through the board or staff of
she National Railway Service.
"a board of forty members. subdi-
vlded into two divisions-finance and
adm'nlstrative-and railroad officials.
twenty members each. A chairman.
tour vlce-chairmer, treasurer, secre-
tary and other officials. An executive
committee of eleven members.
-Four group railway boards, each or
ganized and selected from and by each
group of railroads as now constituted
by the commission in each of the four
rate territories into which the commits
sion has divided the country. -Four
boards IN all, each to consist of seven
members, five selected by the railroads
OF each group and two from the shin
pers located in each group territorv
lThe twenty officials forming these
four boards will serve as the railway
officials division Of the National Rail,
way Service Board)
Committees to Aid Boards
"Ten committees of five members
each to cooperate with each of the
four group boards and selected from
the railroads of each group. This
means four group railway boards, and
forty committees in all. These com
mittees will cover large range of in
vestigation and report, included in
which are: Normal equipment require
ments of each railAoad; additional
equipment to be leased from the Ma
tional Railway Service; standardiza-
ton of equipment; useless expendi-
lures incident to wasteful competi-
ton; study of joint ase of terminals
yards and shop facilities; surplus
tion-cost of carrying; pur-
chases of fuel and supplies; applca-
tion of standard of efficiency in rail-
road operations; working conditions.
"The National Railway Service Cor
poration, recently organized by the
association of security owners to
furnish equipment to the carriers by
conditional sale Or lease, is superseded
by the National Railway Service, with
extended powers for financing and leas
ing equipment under plans which, it is
said, will save many million dollars in
duplication of equipment by
the carriers, now necessary when each
carrier is required to buy its maxi
mum equipment requirements (The
twenty trustees of the service corpora
ton will serve as the finance and ad-
division OF the National
Railway Service Board.)
1t is pointed out that the commission
has already divided the country into
four territories within which the respec-
tive railroads are grouped; that rates
are adjusted to meet the varying condi-
tions of the respective territories, and
differ in percentage from rates made in
other territories. These and other con-
ditions obtaining in each territory and.
tn. vast area covere. thereby necessi-
tate the organization of the carriers
constituting each group under a group
railway board to effectively dispose Of
matters affecting the roads of each
group.
Groups Now Obligatory
These four group railway organiza..
tions to be made obligatory-by act of
(consnued on page fsur)