The Washington times., 1923-02-25
RAILROAD ACT
REVISION ASKED
BY BROOKHART
Drastic Modification of Esch-
Cummins Law Sought in Bill
introduced by Iowa Senator
EXTRA SESSION is URGED
Says Rates Must Be Reduced
at Once If Suffering Farm
ers Are to Get Relief


Drastic notifications of the
Esch-C ummins railroad law, with
absolute repeal of many of its
vital sections, to make possible
extensive reductions in freight
rates, are proposed in a bill In
troduced in the Senate yesterday
by Senator Brookhart.
ASKS EXTRA SESSION.
The Iowa Progressive Republican,
In a statement commenting On his
bill, called upon President Harding
to convene Congress in an extra
session Immediately after March 4
to consider it. He said:
Owing to the criticA- condition
In the agricultural districts Of
this country, which is caused to
a great extent by high freight
rates I feel that the President
should Immediately call an extra
session of Congress for the con-
sideration of this railroad legisla-
ton.
L have noted in the public
press a statement from the chair
man of the Interstate Commerce
Committee Of the Senate Senator
Cummins), in which he predicts it
viii take six months for the con-
Bideration of this legislation, and
1 believe that this should be taken
up at the. earliest possible mo-
ment, in order that the great
farming communities may secure
the relief to which they are just
~ entitled, and relieve also the
travelling public and the shippers
In general.
FEATURES OUTLINED.
The principal features of the
Brookhart bill provide for:
abolition of the Railway La
Dor Board and restoration Of the
Federal Board of Mediation and
Cancellation. The law creating the
latter body still is in effect, the
board having been put out of ex-
istence by the refusal of Congress
to appropriate for its expenses
since the Railway Labor Board
was established under the Esch-
Cumnins act.
2.-Restoration Of the powers of
the State railroad commissions to
completely control and regulate in
trastate rates and traffic. This
section even wipes out the so-called
Shreveport provision, under which
the Interstate Commerce Commits.
sion is authorized to remove dis
ordinations in intrastate rates
against interstate rates. Senator
Brookhart would have no relation
at all between the two
S.-RepeaI OF the rate-making pro-
vision which directs the Interstate
Commerce Commission to maintain
O level of rates that shah insure to
the railroads fair return. Acting
under this direction, the commission
has formally declared 5A per cent
to be a fair return, and has fixed
rates on that basis. However, the
railroad companies reports to the
commission show a return below
that figure so far.
AIMED AT WATER"
4.-Amendment of the provision re-
garding the fixing of the valuation
of the properties of the railroads
no that the Interstate Commerce
Commission shall not determine
upon a value in excess of the fair
market value Of all outstanding
stocks. bonds and other securities
in each case. AS the law now stands
the commission gives no considera-
tion either to the market or par
value OF stocks or securities. It's
valuation determinations are based
solely on the basis of the actual
physical properties of the roads as
going concerns.
5.-Exclusion of unearned incre-
ment in land values from considera-
ton in fixing valuations. In other
words, increases in the value Of
lands owned by railroads are not to
be taken into account in fixing the
value of the properties.
On the latter feature. Senator
Brookhart said:
: THE bill stops the capitalization
OF the unearned increment in prop
erty value"
The requiremtnt that valuation
shall not exceed the fair market
value of outstanding securities, Sen.
ator Brookhart declared, will take
seven billion dollars of water out of
the valuation"
Later, the Senator added. he will
introduce an amendment (which will
stop exclusive profiteering by sub.