Norwich bulletin., 1921-03-21


 of the facilities and service of the rail- roads of the country under strict govern ment supervision is proposed by the Ma tional Association of Owners of Railroad Securities as a way out of the present transportation crisis.
 The plan will be submitted tomorrow to Chairman Cummins of the senate in- terstate commerce committee, and s. Da- vies Warfeld, president of the associa- ton. announced today that representa- tives of his organization would appear later, before that committee to urge its adoption.
 Mr. warfeld says the plan will insure annual savings of millions of dollars, n- crease facilities and service and lower railroad fares and rates. He adds that American transportation has outgrown the system under which 1t now operates and warns that the railroads must recog- nize that only drastic measufes on their part will save them from being swallow 'sd up in the demoralization that govern ment operation and after-war readjust- pent has brought upon them.|
 Unless intensive economical methods in railroad administration are adopted" he continues. there Is no alternative but government operation. followed by goy- lernment Ownership. although the country has given overwhelming evidence of being opposed to it'
 The proposed plan Is supplemental to
 provisions of the transportation act per-
 hitting regional consolidation of physi- cal properties by the interstate commerce
 commission. Certain consultations of
 railroads are necessary. Mir. Warheld says, but an emergency now exists and
 the public Is entitled to more immediate III and substantial benefits than can be de-
 rived from the great physical consolida-
 tions of railroad properties"
 The proposed coordination would be
 brought about through a national railway
 service. to be organized by an act of
 congress, and which also would be an
 agency to purchase cars and other equir-
 ment to be furnished to the railroads
 without profit.
 The l. c. c. would select five of It's
 members who would constitute the ser. { vice division of the national organiza-
 ton. This division would have supervis. , ion and initiatory and regulatory powers ; Ito be exercised through the board of thu national railway service
 The board would be composed of fort,
 members. subdivided into two divisions finance and administrative. and ralroat officials of twenty members each.
 Subordinate to the board would be foul group railway boards. one in each of tn, four fate territories into which the com mission has divided the country-east ! ern, southern, western and mountain-Pa. cific. Each board would consist of sever members. five to be selected by the rail roads of each group and two from thu 2 shippers located in each group territory The twenty railway officials serving or these four boards would serve as the rail
 way officials division of the nationa l board.
 : Cooperating with the group boarC would be ten committees, each selected from the railroads of each group. These committees would cover large range oi investigation and report, including thu l normal equipment requirments of eacf : railroad; additional equipment to bi [ leased from the national railway service
 standardization of equipment; useless ex penditures incident to competition; study of joint use of terminals yards anC shop facilities; surrlus property not E quired in legitimate transportation Cos
 of carrying; purchase of fuel and sup plies; application of a standard of eff
 clency in railroad operations, EorkinI } conditions, wages and the like
 The national railway service corpora s tion recently organized by the association a of security owners to furnish equipmen [ to the carriers by conditional sale o e lease would be superseded by the nationa . railway service with extended powers fol e financing and leasing equipment. Tn, twenty trustees of the present servic e corporation would serve as the finance I and administrative division of the nation h al board.
 f The excess earnings created under tn f transportation act would be used in con s nection with the sale of trust certificate c of the national railway service to pro
 vide for the purchase of freight cars an, n equipment for the railroads under tn e plan proposed. Equipment would b e icased by the service to the roads to mee - seasonal requirements, and thus used a - different times on different railroads. n '"The savings in this method of hand
 ling equipment would be very great" say
 Mir. Warfeld. "The rental cost to tn
 railroads would be gradually cut dow V and railroads rates correspondingly low cred"
 l. Discussing the proposed regional con 1T solicitations of the carriers. Mir. Warnel Ie says troublesome question arises in con ,- nection with the possible conflict of thi ,e sectlo.: of the transportation act wit e state laws. He points to the dangers o b :njunctsons. by dissenting stockholders an le says dissenting states wili likely challeng
 the authority of congress to authorize d consolidation contrary to the statutes o Q decisions of the states to which the con E. stItuent companies owe their allegienc m and existence. z.s ,e The organization proposed. he says. vii 70 asd the I. c. c. in efectins consolidation .e of roads as may prove desirable in tn r. public interest.
 l- The proposal plan, also will give re,ie IF to the short lines, Mr. Warfieid says. Be sides obtaining equipment under leasl In they would save shop expenses as th l. connecting lines would take care c f. equipment repairs.
 et Mir. Warfleld says there is a Yeaknes is inherent in the prevailing voluntary sys ,e tenn of cooperation which congress mus
 lconsider in deciding the necessity for tn
 establishment of comprehensive measur
 Ito insure economy lin railroad operatio J which the public ask and later will dc mand." ie ''Tfle employees are. eoncerned.e he say, re for economical methods of railroad opel ss ation are essential to steady employmer at fair wages"
 MT. Varfield points to what he dc lk scrIbes as the "insurTaountable diaicu ie ties" in bringing about readjustment b 2. tho voluntary action of the Associatio W Iof Executives of Railroads. which. D. says, necessarily represents the views 1e a. small controlling group.
 Continued evidence is given Of thes