The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-05-28

Trust company. Baltimore. a railroad
chairman Of recognized experiences. IL"
has the support Of prominent nEurc$ IN
natInuaI business. publ" and financial
life. and that of many inSuranr" com
punicS and savings banks lie was
elected president of tn" National Assoc
ration vr DwurrS of railroad Sc"uri-
TIES. which developed from the confer
rnrr.
The trst act Of the new a$Sociat on
was To select four Of it's members from
the Various investing groups llt" in
Aurancr companies. savings hanks. ma
;,"naI banks and rrjVat" INVESTORS to
appear before tn" commission tn out
In" the position OF thcn wnrrS Of rail-
road bonds and other securities. and to
show how necessary il Was that the
railroads hc permitted To earn sufficient
revenue 20 give the credit which would
enable them TO dispose nf large vol
uncS ~ securities
Getting tho Work Started.
1t was the first time that representa-
tiVes OF tho organized railroad security
owners were heard by 4 governmental
body. II gave a now aspect TO railroad
behring's. Until this hearing K had not
h,.rn rral;z"d that nifty TO sixty million
people. almost half Of our population.
were the real owners OF the railroads.
After the United States entered the
World War. Congress passed the led
"ral control act. under which the United
States Railroad Administration took
over the control and operation OF the
railroads. This nccesSitatcd 4 standard
form OF contract by which the railroads
were to be operated during the war per-
iod and returned To their owners after
ward.
The association Of security owners
named a committee TO discuss before
me McAdoo Railroad Administration the
form OF this contract. Those active In
the security owners association have
held that the several provisions finally
obtained were vital to the stability OF
their securities
The most active work OF the asSo-
cation was before the committees or
h.th Houses OF Congress when the
Transportation act. known as the Esch-
CummlnS act. was being framed by the
Senate Committee and the House Com
mittee on Interstate Commerce
At hearings before the Senate Com
mittee. the association initiated the
tuada mental principle ct the fixed
centage return on the aggregate value
OF railroad property.
proposals Of the security owners AL
though after the act had been passed
they generally announced that IL was
IN. most constructive piece OF railroad
legislation ever enacted.
suggestions Mads
Owing 20 the general business dc
preston that has accompanied postwar
establishments. the railroads hav" not
III OH ha
Transportation act called for-the high
cost OF operation, including labor costs,
has contributed TO prevent the full opcr-
alton OF the Transportation act. Both
the security owners rcpreSe natives and
the railroad executives have contended
that the act has NOT had An opportunity
% prove its effectiveness.
"ThnSH representing tbs association
If security owners. in their statements
before The committees Of Congress.
made certain suggestions in respect To
tho purchase and supplying Of equip
ment Joint facility uses. etc. which.
with substantial reduction in wages.
they believe essential to enable the
roads to give adequate service.
Although Congress d,d not adopt
those particular suggestions Of the So
curity owners. some Of ~ other suG-
gestionS were added 10 tho act. These
gave tho commission power to divert
freight cars from one railroad for use
on another TO relieve congestion and 70
control tho divisions OF freight rates.
which recently has been employed TO
rehahiliate the New England roads.
The suggestions Of the security own
rrs NAV be divided into two proposals.
One deals with equipment. its purcha Sc
and the method under which Il Is to be
used by tho railroads: the other is Il
general method oc dealing with econo-
mics.
1.rv1c. cornoraSdo4