The Washington herald., 1921-06-06
SECURITY HOLDERS
NAME EMINENT MEN
FOR RAIL STUDIES
Distinguished Board to
Probe transportation
Problems.
SITUATION is ACUTE
Unless Economies Are Effect
ed, Transportation Cannot
Be Maintained, Belief.
SITUATION is ACUTE


ing of the executive committee OF
the National Association of Owners
OF Railroad Securities, held in Now
York, announcement Is made of the
appointment of a board of eco
nomics and engineering. This board
Is composed of the following engi-
neers and experts: John F. Stevens,
Col. F. A. MolitSr. John F. Wallace,
w. L. Darling, L. B. Stillwell, w.
w. Colpitts.
The work to be performed by this
board is regarded as an important
step in the solution of the trans
portation problems now confront
ing the country.
Interest Not Being Earned.
The security owners, 1t is stated,
are greatly concerned in the pres
ent situation. The interest on the
being earned. On the governments
valuation of the railroads they will
be taken into the larger consolidat-
Cd systems under the provisions of
the Esch-Cummins act. 1t is point
ed out that this procedure and the
conditions obtaining will have their
effect on the value of railroad Sc
curities.
The general Decentralization incl
dent to poor business, low earnings,
high operating costs, movement for
reduced rates, the valuations and
proposed consultations, together
with the friction between the rail-
roads and their employees. in tho
opinion of the security owners, is
far from reassuring.
They point to the large sums OF
money required for the maintenance
of the properties, and to the sum
owing the government.
The executive committee and the
board of experts believe that sub
stantial economies are necessary and
can be secured through co-ordina-
tion. along lines announced in a
tentative statement presented by
President warfield to Senator Cum
Minis in March last. This. to be ac-
complished through group organiza-
tion of the railroads in the four ter
ritories the interstate commerce
commission has laid out.
The committee feels that unless
intensive economies are effected
there Is doubt whether rates ana
fares procurable will be SUFFICIENT
to maintain transportation in the
public interest. or whether part or
the cost must be produced through
taxation.
warheId's Statement.
The statement of President ..
Davies warfeid. of the association,
in announcing the appointment of
the board follows:
NO member of the board of econ
omics and engineering is connecteo
with a railroad company or with
any financial institution. The board
is uhampered by ties of individuai,
railroad or financial identity or
ownership, or by the influences of
any particular security owning or
banking group: it is free from the
environment, that attends govern
mental appointment. 1t can pursue
its investigations and reach con-
clusions solely with the purpose of
securing the substantial economies
that can he made in the public in
terest, only possible of attainment
by those in position to view the
transportation system as a whole.
The same results cannot be ex-
pected to be attained through vol
untary agencies. associations or in
strumentalities composed of off,
cials OF individual railroads or sys-
TENS, surrounded by the compelling
influences that are necessarily en-
tailed upon those who represent the
competitive interests 2 their re-
spective railroads. The railroads
have been organized, and are oper-
ated under highly competitive
methods of administration. And
while competition should be en-
couraged and provided for between
the railroad systems, it must he
kept within reasonable limits and
the results of competitive service
obtained without the wastefulness
that is unavoidable under the pres-
ent system under which transporta-
tion by rail is conducted. No other
instrumentality for CARRYING on,
the full purposes contemplated nv
the Esch-Cummins act in respect to
economies or consultations couId
be devised that would be So free to
cooperate with the commission anc
the railroads in solving, in the pub
lie interest, the problems now con-
fronting the railroads. ss this board
of economics and engineering Icon-
stituted and appointed as il has
been. The experience OF the mem
bers OF this board in economic in
vestlGations and railroad construc-
tlon and operation has been exccp-
tionally broad and varied and es-
pecially qualities them for the pres-
ent undertaking"