Evening star., 1932-09-25
.RA|L BONDS SAFETY
I0BJECT Of PROBE
Coolidge Commission to Seek
Ways of Restoring Lines
to Prosperity.
Continued From First Page

GIOlIl dSC.J
information affecting valuations as it
deems necessary"
In attacking the regulation to which
the carriers are subjected, and declar-
ing authority should be handed back to
ties except as to matters essential to
assure fair rates or public safety, the
committee said the total cost of regula-
ton has reached such proportions as
to be cause for alarm"
While for the As gears of its exist
ence up to June 80 1882. the cost of
the Interstate Commerce Commission
totaled s125,000,000." the report con-
tinued, that for the past 10 years it
has amounted to $4,000. 900, or an
average of approximately s7,o00,000 a
year The total cost Of all State com-
missions regulating public utility COM
panies as well as railroads averaged
Sc, 100000 during the years 1923 to
1890"
Growth of Regulation.
THE original purposes of railroad
regulation" the committee added, were
to see that railroad rates should be rea-
sonable and that railroad service as
we'll as rates should be non -discrim-
inatory. To the original simple regula-
ton has gradually been added a multi
plicity of requirements, partly by law
and partly by regulation. Some OF
these are desirable and should be re-
tanned in the public interest Many
however, were added on account Of a
former monopoly character Of the rail-
roads, which has since disappeared due
to competition from other forms OF
transportation. Other features of the
added regulation are believed to have
been unnecessary in the first place and
not to have contributed to the public
well-being."
Under existing conditions, the COM
mittee held, taxpayers are burdened
and the railroads handicapped.
On the subject of consolidation,
which is now in the fore by reason of
the four-system agreement in the East,
the committee said such mergers
doubtless would be Of assistance in
promoting financial stability, but the
fact remains that some of the larger
systems, already well advanced on their
consolidation programs, have had to
have recourse to the Government for
funds to meet their obligations in the
present emergency"
Other Suggestions Made.
Additional recommendations made BY
the committee were:
That railroads should be permitted to
engage in transportation on the water
ways and highways on an equal basis
with other carriers in similar trans
portation service.
That Government policies affecting
fra n q
peting form of transportation equality
can render most efficiently and eco-
nomically.
That Federal and State authorities
should allow prompt establishment by
railroads Of new rates to meet competi-
ton of other forms Of transportation
Amendment Of Clause.
That the long and short haul clause
Of the interstate commerce act should
be amended SO as to place upon the
rail carriers the responsibility of de-
termining whether proposed rates are
reasonably compensatory
The committee which drafted the re-
port was headed by Judge F. C. Dill
lard, Sherman, Tex, banker, and In
cluded the following: c. E. Bockus
president Clinchfeld Coal Co., New
York City; E. George Butler, secretary
treasurer John G. Butler Co., Savan-
nah, Ca: j. 8. Crutchfield, president
American Fruit Growers, Pittsburgh;
Pierpont v. Davis, vice president the
National City Co., New York City; Carl
P. bennett, president General Capital
Corporation, Boston; Thomas H. Han
rahan, president Buffalo Freight Term
inal Warehouse Co., Buffalo; DR.. Emory
R. johnson, dean Wharton School Of
Finance and Commerce, University ol
Pennsylvania, Philadelphia; E. B. Ober
president Motor Power Equipment Co.
st. Paul: w. L. Petrikin, chairman
Of the board the Great Western Sugar
Co., Denver; H. A. Scandrett, president
Chicago, Milwaukee, st. Paul & Pacific
Railroad, Chicago; Harry A. Wheeler
president Railway Business Association
Chicago, and r. B. White, president
Central Railroad Co. Of New Jersey
New York City.