Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-03-21
Federal Supervision
fcontinued from Page Onel

rates. He adds that American Trans
portation has outgrown the system.
under which it now operates anu
warns that the railroads must recos :
nize that only drastic measures on
their part twill save them from De-
ing swallowed up in the demorahSa.
ton that government operation anu
after-war readjustment has orouen'
upon them"
UNLESS intensive economical
methods in railroad administrator
are adopted" he continues, tnere is
no alternative but government!
operation, followed by government
ownership. although the country mas
given overwhelming evidence OF De-
ing opposed to it."
The proposed plan is supplement
tai to provisions Of the Transports
ton act, permitting regional consoii-
dalton of physical properties py the
Interstate Commerce Commission
Certain consultations of railroads
are necessary, Mr.. Warfield SAID,
'but an emergency now exists AND
the public is entitled to more lmme-
date and substantial benefits imam
can be derived from the great pnysi-
cal consultations of railroad prop
critics.
The proposed coordination wouio
be brought about through nationa'
railway service, to be organized oy
an act. of Congress and which also
would be an agency to purchase cars
and other equipment to be furnished
to the railroads without profit.
The Interstate Commerce Com
mission would select five of its mem
beers who would constitute the ser
vice division of the national orgam-
zation. This division would nave
supervision and initatory and regu-
latory powers to be exercise',
through the board of the natloha'
railway service.
The board would be composed OF ~
members, sub-divided into two diVi-
sions. finance and administrative, anu
railroad officials, of 20 members each'
Subordinate to the board Wouio pe
four group railway boards one IN eacn
of the four rate territories into when
the commission has divided the coun-
try, east, west, southern and noun
tain section. Each board would con-
sist of seven members, five to be Se-
lected by the railroads of each group
and two from the shippers located IN
each group territory. The 20 railway
officials serving on these four boards
would serve as the railway oInclais
division of the national board.
Cooperating with the group boards
would be 10 committees, each select
ed from the railroads of each group
These committees would cover large
range of investigation and report, in
GLIDING the normal equipment re-
auirements of each railroad; addition
al equipment to be released from the
National Railway Service; Standard
cation of equipment; useless expendi-
lures incident O competition; STUDY
of joint use of terminals; yards, and
shop facilities; surplus property not
required in legitimate transportation;
cost Of carrying; purchase of fuel and
supplies; application of a standard OF
efficiency in railroad operations;
working conditions, wages and the
like.
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 would be
superseded by the National Railway
nancing and leasing equipment. The
Service with extended powers for fl.
twenty trustees of the present service
corporation would serve as the fl
nance and administrative division of
the National board.
The excess earnings created under
the Transportation Act would be used
in connection with the sale of trust
Service to provide for the purchase of
freight cars and equipment for the
railroads under the plan proposed.
Equipment would be leased by the
service to the roads to meet seasonal
requirements, and thus be used al
different times on different railroads
THE savings in this method of
handling equipment would be very
great" says Mr.. Warfie1d. 1.-THE rental
cost to the railroads would be grad
ually cut down and the railroads
rates correspondingly lowered"
Discussing the proposed regional
consultations of the carriers, Mr..
Warfeld says a troublesome question
arises in connection with the possible
conflict of this section of the trans
portation act with state laws. He
points to the dangers of injunctions
by dissenting stockholders and says
dissenting states will likely challenge
the authority of Congress to authorize
a consolidation contrary to the stat
utes or decisions Of the states to
which the constituent companies owe
their corporate allegiance and exist
ence.
The organization proposed. he says,
will aid the Interstate Commerce
Commission in effecting consultations
of roads as may, prove desirable in
the public interests.
The proposed plan also will give re-
lief to the short lines, Mr.. Warfield
says. Besides obtaining equipment
under lease. they would save shop ex-
penses as the connecting lines would
take care of equipment repairs.
Mr. Warfield says there is a weak
ness inherent in the prevailing vol
untary system of cooperation which
Congress must consider in deciding
the necessity for the establishment
of a comprehensive means to insure