The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-04-19
RAILROAD PLANS
FOR CONGRESS
CLASH
President Of U. s. Chamber Of
Commerce Outlines Views Of
Opposing Groups.
By ROBERT s. THORNBURGH,
international News Service.

Two distinct schools of thought"
relative to solution of the trans
portation problem of United States
one favoring regional railroad
consolidation practically eliminating
competition and the other backing
amalgamation Of lines leaving two
to four competing systems in each
district--form the basis of the rail-
road battle to be fought out before
Congress convenes in December.
This view was expressed today by
high Government officials and
transportation experts of the Cham
Der Of Commerce of United States,
who are making q close study OF
the railroad situation. Both groups
are opposed to Government owner
ship. They are making a strong
effort to stimulate railroad service
by obtaining cooperation between
shippers and rail executives and
by formation OF q national trans
portation policy to meet the de-
mands Of the Government owner
ship group in Congress.
Challenges u. s. Ownership.
julius Barnes, president of the
Chamber of Commerce OF United
States, who has just returned from
EUROPE, said today preliminary re-
ports Of the various committees
| investigating railroads would be
heard at the transportation group
gathering of, the chamber In New
York, May 8. He sounded the first
| definite challenge Of American BUSH
ness to the Government ownership
group that Is expected to have
wide influence in the Sixty-eighth
Congress.
cit is almost unbelievablesp he
said. with the example OF Europe
spread before us-with the clear
tendency OF Europe to retreat from
the path of government failure to
the high road Of private enterprise
lreferring to British and Italian re-
turn OF railroads to private OPP
erators-that there should be voices
in the States fayoring the extern.
sion Of policy Of regulation into
that of practical State operation.
Life Blood Of Industry.
There should be a general APP
prevail of the fact that transpOrta-
try-that there should be with IL g.
sound appreciation of the service
of private ownership and private
operation legitimately secured and
stimulated as against the deadening
effort OF Government ownership
or undue Government interference. !"
The tendency of the Government
to assist railroads in meeting public
requirements that Federal owner
ship may be pushed aside, Is seen
in the attitude Of Secretary Of Com
merce Hoover, who is conducting
a campaign to bring a closer CO.
operation between shippers and the
railroads.
Hoover is believed to regard the
railroad consolidation plan the most
important phase Of the situation.
Government. officials, however, adj
NIT success OF voluntary cOnsolida-
tons on the part of the railroads
as doubtful Indications point to q
determined administration effort to
put a compulsory consolidation pro-
vision in the Transportation Act.
Other Schools Views.
Early drafts Of the Transportation
act, enacted in March, 1920, con-
tanned a compulsory consolidation
clause, providing the railroads did
not undertake consolidation within
specified time The clause was
omitted in the final draft.
The non-competitive school OF
thought maintains the policy OF the
past in respect to competition has
been unwise. The leaders point out
that gas. electric, street railway and
telephone service is furnished quite
generally throughout the country
by companies each one of which has
a monopoly of business in the field
in which it operates, the complete
monopoly plan being under adequate
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