Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-17
RAIL
SYSTEM PROPOSED
Limit on Income From Utili-
ties Is Also Urged by
Progressives.
BY GEORGE e. DOYING.

A definite legal limit upon the In
come an individual may be permitted
to receive from his ownership or man
agement of a public utility and the es-
adjustment of a Government railway
system to supplement and compete with
the prtvately-owned railroads are but
two Of the radical proposals included
in a report Of the Committee on Public
Utilities Of the Progressive Conference
made public by Senator George w. Nor
ris of Nebraska
The report is signed by Donald r.
Richberg of Chicago, as chairman of
the committee, but does not disclose
whether the other % members partici-
pated in its preparation or agree with
its recommendations. 1t was sent to
Senator Norris as chairman of the
Progressive Conference held here last
March, at which time the Committee
on Public Utilities was appointed.
Speculative Gain Decried.
The individual income from public
utility operations, which the report pro-
poses should be limited by law, would
be permitted to include "a generous
compensation for actual personal serv-
ice and a moderate compensation for
actual investment
Such limitation" the report says,
might destroy a strong incentive to
private interest in public Services-the
hope OF speculative gain. But this In
cent1ve Is unalterably hostile to the
public interest and draws into public
business persons poorly qualified for
positions OF public trust"
The proposed competitive Govern
ment railway system should be estab-
lished. it is stated, to improve the
transportation service Of the Nation
and to establish standards of service
and rates which can be applied in the
regulation of private enterprises. The
Interstate Commerce Commission would
be empowered to fix and distribute
charges for transportation service in
proportion to their cost, including a
fair return on the prudent investment.
For the electric power business, the
report proposes the creation Of a Fed
eral Commission, with authority COM
parable to that of the Interstate Com
merce Commission over railroads, but
the new body would be co-ordinated
with State regulation, so as to pre-
serve, SO far as possible, the powers
of local government, without per-
hitting corporations and their activi-
ties which are beyond State authority
to relieve themselves Of effective public
control"
The Federal and State govern
ments," says the report, should CO.
operate in establishing enterprises for
the production and distribution Of
electric power wherever feasible and
thereby create standards Of service and
Of rates which can be applied in regu-
lation Of privately owned and operated
electric utilities"
Another Federal commission also to
be co-ordina$ed with the State COM
missions, is suggested to take over all
regulation of interstate communication
by wire or wireless and relieve the
Interstate Commerce Commission, the
Department of Commerce and the Fed
eral Radio Commission Of their present
functions.
Freedom Of the Air.
To preserve the freedom CT the air, 1t
Is proposed. this commission should be
forbidden to create or grant any rights
rhich NAV become vested in private