The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-03-21
Less Cost, Better Facilities
and Service, Besides Low
.er Rates, Promised or
Hoped For.
QUICK ACTION NEEDED
Forming of National Rail
way Service, Backed by
Congress, Is Urged by
Stock Owners.
CUMMINS TO HANDLE BILL
Crisis Said to Be at Hand In
volving Fate Of Private
Ownership Of All Lines
in United States.
Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau,

Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau,
Washington, ID. c., March 90.
A comprehensive plan for conduct
ing railroad transportation. which is
aimed to bring about far reaching re-
suits, save millions of dollars an
nually, increase facilities and service
and at the same time lower both pas
senger and freight rates, will be filed
tomorrow with Senator A. B. Cum
MINIS of Iowa, chairman Of the Senate
Committee on Interstate Commerce.
These plans are explained in a state
ment issued by s. Davies Warfield,
president of the National Association
of Owners Of Railroad Securities. The
solution of the problem, it Is stated,
lies in the organization of what the
plan calls the National Railway Ser
vice.
Mr.. warfield explains in separate
letter to Senator Cummins that only
Intensive economical methods in rail-
road administration can save the
roads from Government operation and
ultimately from Government owner
ship-this in the face Of oyerwhelm-
ing evidence of public opposition.
1t was announced that representatives
of the association are TO appear later
before the Senate Committee TO present
formally further details Of the plan.
WarheId Plan Summarizes.
The plan, summarized. follows:
The Interstate Commerce Commits
sion would select FIVE from among
its members TO constitute the SER
vice division to have supervision and
initiatory and regulatory powers
through the board or staff of the
National Railway Service.
The board would consist or forty
members, subdivided into two divisions
finance and administrative and
railroad officials, twenty members
each.
Subordinate to the board would be
four group railway boards. each
organized and selected from each OF
the four rate territories into which
the commission has divided the coun-
try. -Four boards i'll all. each to con-
gNL DI SEVEN ultUlbttSf HNc Etit1Ltb
bv the railroads or each group and
two Tom the shippers located in each
group territory. THE twenty Of
lcials forming these four boards will
serve as the railway officials division
OF the National Railway Service
Board)
Ten committees of five members
each to cooperate with each OF the
four group boards anu selected from
the railroads of each group. This
means four group railway boards and
forty committees in all. These COM
nlttees will cover a large range of
Investigation and report. their sub
jects including the normal equipment
requirements Of each railroad addi-
.ional equipment TO be leased from
the National Railway Service; stand
ardzation Of equipment: useless ex-
penditures incident TO wastefui COM
petition: study Of joint use OF
terminals. yards and shop facilities:
surplus property not required In
legitimate transportation cost at
carrying: purchases Of fuel and sup
plies application OF standard OF
efficienc.' IN railroad operations:
working condtions-wages and the
like.
Corporation. recently organized by
the association of security owners, 10
furnish equipment to the carriers by
conditional sale or lease is superseded
by the National Railway Service with
extended powers for financing and
leasing equipment. The twenty
trustees of the service corporation
will serve as the finance and admin
istrative division Of the National
Railway Service Board.
sanction of Congress fought.
Under the plan an organization Is TO
he formed by act OF Congress, which the
association advocated before the COM
mttees Of Congresse In 1919. when Its
suggestions were made. leading to the
provisions in the transportation act for
rate adjustments 10 yield 51a to 6 per
cent. on the aggregate value OF railroad
properties. with a division of excess
earnings Suggestions were made by
the association at the same time leading
TO the emergency powers given TO the
commission TO divert cars during the
freight congestion and the control over
the division OF freight rates.
Congress never acted on the proposal
for the organization to insure intensive
economies. although II was stated IL was
essential to give full effect to other sug.
gestions OF legislation that were adopted.
The organization Is auxiliary to the
Esch- -Cummins act, which, II Is stated
Is essential 10 the life OF the roads and
would have produced normal revenue
but for the declining tonnage. The re-
suits desired can be accomplished now,
Il Is stated. only through the continued
operation OF that act Its ratemaking pro-
visions being indispensable.
Coordination OF the machinery OF
transportatio as Il now exists il to be
obtained by the organization through
The National Railway Service. and tine
functions OF the service will be as an