Evening star., 1923-06-24
.CUMM|NS TO Offer.
new RAIL MEASURE.
Senator Proposes to Carry
| Out Transportation Pro-
qram of President.

Senator Cummins of Iowa. chair
fnan Of the Senate interstate COM
fnerce committee, who was in Wash
ington yesterday, indicated that he
would prepare and submit to the
Senate at the next session bill to
carry out the transportation pro-
gram outlined by President Harding
in his Kansas City address Friday.
"The President, in laying empha-
sis on the need of the consolidation
of the railroads into several great
competing systems dealt with the
most important feature of the rail-
road problem" said Senator Cum
minis ------ E.
There must be such consolidation,
or 1t is inevitable that the govern
ment must eventually purchase and
operate at least 100000 miles of the
total railroad mileage of the United
States approximately one-third).
To abandon this mileage would be
disastrous. Yet these roads are un-
able to earn sufficient revenues to
sustain themselves under existing
conditions. If the rates are to be low
cred.
II believe that the consolidation of
the railroads in great systems wtll
result in more efficiency and a great
saving in expense. These results in
turn should make it possible to re-
duce the costs of transportation"
Conferred With President.
Senator Cummins, one of the au-
1hors of the Esch-Cummins trans
portation act, under which the rail-
roads In 1920 were returned to their
private owners, conferred at consid-
cradle length with President Harding
not long ago in regard to the railroad
problem. He said yesterday that he
had been aware Of what the President
would propose.
Yesterday afternoon Alfred P.
Thorn, general counsel for the Asso-
citation of Railway Executives, dis
cussed with Senator Cummins the
proposed merger legislation. With
out committing himself to the plan
ADVOCATED by the President. Mr.. Thorn
on leaving Senator Cummins' hotel
said. that the President in his address
had shown clearly that "he wishes to
build up and not tear down"
:. Later Senator Cummins said that
Mr.. Thorn had gone into the merger
matter at some length with him.
Some Of the big and strong roads
are opposed to merger which would
mean their union with weaker COM
psnies,' said Senator Cummins. He
pointed out that under the existing
transportation act voluntary mergers
into largo competing systems are
permitted, and that under the act a
study is now being made of the best
possible consultations.
Il am confident that such consoli-
dations can be effected" said Senator
Cummins. Legislation to make con-
solicitations compulsory will be neces-
sary, however. When he was asked
how Congress could compel railroads
that the roads could be condemned
and taken over for the value deter
mined by judicial procedure. and then.
in merged form, turned over to pri-
vate owners.
1.-THE great problem in connection
with the mergers will be that Of
financing" said Senator Cummins.
He admitted there would be difficult
ties arising out of the, claims made
by the individual roads as to the
for their properties in each merger.
Senator Cummins expressed the
opinion that there should be estab-
1ished. through the. mergers. from
from eighteen to twenty-five great
railroad systems in this country.
Hearings Are Expected.
It is expected that prior to the
meeting of Congress the first Monday
in December members of the Senate
interstate commerce committee will
be summoned to Washington and q
number of meetings and possibly
OH lue Scr
as well as other legislation in regard
to the railroads, will be held.
The Iowa senator said that he be-
1ieved the legislation proposing COM
pulsory mergers should follow gen.
orally the provision contained In the
transportation act as 1t passed the
Senate. This was later modified In
conference between the two houses
of Congress so that the mergers were
made voluntary.
Tho chairman Of the Interstate COM
merce committee discounted the plans
of the progressive group which met
recently in Chicago and determined
to make a fight on the valuation of
the railroad properties as 1t Is now
being carried out by the Interstate
Commerce Commission under act of
Congress.
"Valuat tion," he said, 'is judicial
matter and cannot be settled by legis-
1ation. Any attempt to legislate
valuation of railroad properties nee
essarily will fall"