Evening star., 1932-09-28
RAIL STUDY BEGUN
BY NATIONAL BODY
Coolidge Expected to Map
Plans of N0n-Partisan
Group at Once.
By the Associated Press.

By the Associated Press.
NEW YORK, September 28.-A non-
partisan committee of five prominent
men, headed by former President CAL
vim Coolidge. today set about study OF
the financial position of the Nations
railroads.
Sponsored by 81 banking and insur-
ance organizations and universities the
commission will recommend methods
of strengthening the transportation
lines and will attempt to mobilize pub
lie sentiment on behalf of a remedial
legislative program to be Llaced before
Congress.
With Mr. Coolidge on the committee
are Alfred E. Smith, former Governor
of New York; Clark Howell, sr., publish
er of the Atlanta Constitution; Bernard
M Barush, a director of The Baltimore
G. Ohio Railroad, and Alexander Legge,
president of the International Harvester
Co. and former chairman of the Farm
Board
Will Serve Without Pay.
Walter Bennett. president If the
announced the formation of the COM
mittee said the members will serve
without pay.
Mr. Coolidge is expected to an
nounce the committees plan of opera
ton at an early date.
In announcing the formation of the
committee and the acceptance of its
members Bennett made no forecast as
to what lines the survey and its re-
sulting proposals might take.
However, a letter, by which the COM
mlttee members were formally invited
to serve, read in part:
The present deplorable condition OF
the railroads is not due wholly to the
stagnation of traffic resulting from the
long continued depression. Many CT the
present ills are due to governmental
financial. labor and management poll
cies, some wrong in conception. some
wrong in application. and others rem
dered obsolet by radically changed
conditions.
No solution will be effective unless
the problem of the railroads is con-
sidered as an integral part o. the en-
tire transportation problem CT the
United States. whether by rail, highway,
waterway, pipeline or air.
Every industry in the country is en-
titled to fair treatment-the railroads
no less than the others. The public
interest must certainly be protected.
but regulation should not place the
railroads at a hopeless disadvantage
with competing agencies and destroy
fleXibility of operation and management
initiative"
1920 Act to Be Studied.
A principal undertaking of the COM
mission probably will be to investigate
the application of the 1920 railroad act,
particularly the recapture provision, un-
der conditions of today. 1t also is eX-
pected to inquire into the practically
of other existing railway legislation.
Bennett said the survey was designed
to safeguard the interests of the saw
1ngS banks, insurance companies foun-
dations and other fiduciary. institutions
who are the principal holders of rail-
road bonds. The National Association
of Mutual Savings Banks heads the list
of the 81 sponsors.
The organizations listed as inviting
the commission to serve, principally IN
surance companies include Harvard,
Yale, Columbia and Chicago Universi-
ties, the Railway Business Association
and the Investment Bankers Associa-
ton of America.
Mr.. Baruch, commenting on the an
nouncement last night. said he under
stood Mr.. Coolidge probably would call
the committee together within a few
days, and that work would be started
Immediately.
A staff of technical experts will be
organized to collect data on the various
phases Of the problem and report
findings.