New-York tribune., 1921-06-23
Senators Z old
Eco1aornnyW ollld
Make Roads Paw
Spokesman for Owners of
Securities Says Bust
ness Rcadjustnent Has
Reduced Carriers Income
Favors Esch-Cun,nins Act
S. Davies Warfeld Asserts
Wage Reductions Will Not
Mean 8 Per Gent Earnings

WASHINGTON, June 22.S. Davies
Warfeld, president of the National AS
sociation of Owners of Railroad Secur-
tiles, testified to-day before the Senate
Committee on Interstate Commerce in
the railroad investigation. He said that
only through far-reaching economical
methods for conducting transportation
and through the wiping out Of oldtimc
prejudiccs could rates and fares be
made satisfactory to the people and
compete with the rates of other forms
Of transportation while producing re-
turns sufficient to enable the roads to
finance obligations. With proper econ
omies, however, and the return of nor
NAL business conditions, ne predicted
that the railroads could earn a per
cent return and also reduce rates.
Transportation could not be main
tanned, he said, on a return on railroad
property in the aggregate less than
that provided in the Esch Cummins
act. He said any attempt to impair
that act would menace successful oper-
&tion, in the public interest, of the
transportation system.
The question for the moment" said
Mr.. Warfield, "is whether sufficient rev.
enue can be obtained from rates and
fares that will be considered reasonable
by the public and the shippers, and will
these rates bear a relation to the price
obtainable for the articles transported
that will otimpede commerce; or will
part of the money required to meet the
necessities of transportat ton have to be
supplied. in the public interest, by tax
alton? The latter means government
or NJ. ,nn ,ol .
ownership, and unless effective rail-
road organization is consumm ated to
introduce rigid economies this cannot
be avoided"
He contended the increase m railroad
rates could not be held accountable for
the contraction in business from which
the railroads had suffered acutely. The
unprecedented and unforeseen era of
business readjustment, he said, was the
real cause of the loss Of business to
the railroads.
Mr.. War6eld presented as an economy
measure the plan which he has here
tofore announced for an organization
Of the officials of the railroads as
grouped in each of the four territories
now established by the Interstate Com
merce Commission.
Another plan was to provide for a
central agency or corporation to supply
equipment" to the railroads without
profit TO the corporation and to per-
form other services under the su per-
vision of the Interstate Commerce
Commission.
He said the commission had laid ont
the country in four districts, with the
carriers already grouped in those dis
tricts. He would have the carriers Of
each group organize themselves. A
group railway board, Of not less than
five members, would be selected by each
group of carriers, according to his plan
From among the carriers OF the groups
men would be selected to report on
advanced methods for producing econ
on.ies.
Three officials, he said, were to be
selected from each of. the four group
boards, twelve in all, to serve on
national board, with twelve additional
members selected from the trustees of
the National Railway Service Corpora
ton. This national board would be
composed Of practical railroad officials
and men trained in finance and general