Evening star., 1932-09-11
Smith and Other National
Leaders Also Mentioned
as Members.
INSURANCE COMPANIES
AND BANKS SEEN IN MOVE
Formation Of Commission Rumored
to Make Recommendations
to Congress.
BY VICTOR EUBANK,
Associated Press Financial Writer.

Associated Press Financial Writer.
Copyright, 1882, by the Associated Press
NEW YORK, September 10.-Calvin
Coolidge and other prominent national
leaders, it was reliably reported in Wall
Street today. are expected to become
members Of non-partisan commission
for the purpose Of making q thorough
study Of the country's railroad prob
lens, with q view of recommending
remedial legislation at the next session
Of Congress.
The commission, 1t was said. will
work under the sponsorship Of the Ma
tional Association of Mutual Savings
Banks, together with other large banks
and insurance companies, and will rep
resent not only the financial institu-
tions, but the public rs well. The
railroads will have no connection with
the commission.
Formal Announcement Expected.
While the plans are understood still
to be somewhat nebulous, it was
thought the details might be settled in
few days and formal announce
1t was understood that neither Mr..
Coolidge nor any of his proposed asso-
ciates on the commission would receive
a salary, but that the expenses of the
investigation would be borne by the
banking and insurance interests whose
funds are tied up to considerable ex-
tent in railroad securities. The initial
expense fund, it was thought, may total
something like 100000.
It was understood the Savings Banks
Association had approached Mr.. Cool
idge with the proposal that he alone
conduct railway inquiry. Although no
statement has been forthcoming from
the former President nor any members
Of the banking and insurance groups,
it was reported Mr.. Coolidge had sug-
gested that non-partiSan commission
one thoroughly free from politics
would best serve the purpose.
Whether the proposed commission
would be sponsored by the Government
was not learned. In some quarters,
however, 1t was believed the interests
back of the investigation prefer that
1t be of semi-independen nature.
Smith Proposed as Member.
Several names already have been
mentioned as possible members of the
commission, but only few are said
thus far to have been approached re-
garding their willingness to serve. 1t
was reported that Alfred E. Smith, for
mer Governor and national Democratic
leader. had been suggested as one Of
the commissioners, although this was
not confirmed.
worked out, the commission would hold
hearings at which railroad officials,
heads of unions, bus lines and pipe line
corporations would be asked to testify
and state their sides of the complicated
transportation problem.
Financial interests point out that the
railroad problem still is one of the more
serious confronting the country, not
withstanding that freight car loadings
recently have picked up and drastic
economies are being inaugurated by the
carriers.
In Debt to r. F. C.
At the same time, it was explained,
many OF the roads are not earning their
next bond interest payments, and al
ready are heavily in debt to the Re-
construction Finance Corporation. AL
though bonds of the majority of the
carriers have increased spectaculariy in
market value during the past month or
two, most rail securities still are far
from par levels.
The contemplated commission also
was expected to make a careful study
OF the rail wave situation, and it is
thought at least one Of the members of
the investigating body may be chosen
because of his known friendship for
labor organizations. This, however, still
was said to be matter Of discussion.
The Mutual Savings Banks Associ-
alton, since it announced last Wednes-
day formation of a committee of its
members to consider the case of the
railroads, has received assurance of
strong support from several parts of the
Nation, bankers explain.