Omaha daily bee., 1922-03-26
Merging of
Railways y
Proposed
Interstate Commerce Body 10
Hear Views on Consolida.
tion of Systems Next
Month.
Need Seen by Cummins
BY ARTHUR SEARS HENNING.
Omaha Bsr Leased Wire.

Washington, March Is. - With
Senator Cummins Of Iowa asserting
that the consolidation Of the rail-
roads into a few great systems is
all that can avert eventual govern
ment ownership and operation OF the
transportation lines, unusual impor-
tance attaches 10 the proceedings
pertaining to this question which
will begin before the Interstate
Commerce commission next month.
The commission will hear the
views OF railroad officials and others
on the various consolidation schemes
which have been proposed to carry
out the following provision OF the
transportation act ,ot 1920:
"A commission shall, as soon as
practicable, prepare and adopt plan
Tor the consolidation OF the railway
properties OF the continental United
States into a limited number OF sys-
TENS. In the division OF such rail-
ways into such systems under such
plan. competition shall be preserved
as fully as possible and wherever
, practicable the existing routes and
channels OF trade and commerce
shall be maintained.
Provides Uniform Rates.
Subject to the foregoing require
mcnts. the several systems shall be
so arranged that the cost OF trans
portation rs between competitive sys-
TENS and as related to the value OF
the properties through which the
service is rendered shall be the same.
so far as practicable, so that the
systems can employ uniform rates in
the movement OF competitive traffic
and under efficient management earn
substantially the same rate of return,
upon the value OF their respective
railway properties
Senator Cummins, one OF the
authors OF the transportation act and
an acknowledged authority on rail-
way questions, said that there are
some of our railroad companies that
never can be maintained until the
process of consolidation is consum-
mated
II predict" said the senator, that
il we do not sccceed in carrying out
the principle OF consolidation, which
has already gone forward in a very
satisfactory way. it will presently
uegin to appear TO all the people of
sac country that there is just one
other solution-that is government
ownership and operation. II we don't
consolidate the lines government
ownership and operation is the only
recourse open to the American peo-
pie and l want it to be understood
that | am unalterably opposed to
government ownership and opera
ton OF our railroads.
No Competition Now.
The American railroad problem
will never be finally solved unless all
the railroads are consolidated into
comparatively few systems, say IS
or 20, and competitive in their char
acter. | might add that there is no
competition in the railroad world and
ought to be none except the compe-
tition of good service, the competi-
ton which renders one railway prop
crty more attractive to shipper than
another. or one railway passenger
train more attractive to a traveller
than another.
"When that is done we can fix
rates so that the lowest schedules
that will sustain these properties as
whole may be established.
There are now pending before
congress, and especially in the SEN
ate, great many bills which have
for their purpose the modification Of
the transportation act of 1920 in vital
respects. The farm organizations
and the farmers have my deepest
sympathy because | know the hard
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