Evening star., 1932-09-28
Mr.. Coolidge's New Job.

Mr.. Coolidge's New Job.
In turning down the application of
the carriers for horizontal increase
Of Is per cent in freight rates last year
the Interstate Commerce Commission
referred, in the course of its opinion,
to the fact that:
The committee representing the Sc
curity holders have suggested the for
nation of special commission to con-
slider the needs of the railroad situa-
ton. Such procedure has been followed
in England, and it is receiving con-
sideration in Canada. whose problems
are very like our own. We have no
authority to constitute such commits
sion and are, therefore, not in a po-
sition to follow up this suggestion.
The bondholders have, therefore,
taken a more direct way in carrying
out their proposal, the result of which
is found in the announcement of the
commission of eminent citizens, headed
by ex-President Coolidge, who will labor
without pay to find out what is wrong
with the railroads. Its members will
nave at their service a large staff of
experts and economists, and a more
detailed description Of the scope of its
work Is expected soon to come from
Mr.. Coolidge.
But the nature of its task is outlined
pretty well in the announcement of the
commissions creation. The present
plight of the railroads is not due wholly
to the depression, this statement ex-
plains, as some of the factors contribut-
ing to their present condition are
governmental, financial labor and
management policies, some wrong in
conception, some wrong in application,
and others rendered obsolete by radical
ly changed conditions"
The fundamental concept of the COM
missions chief duty is indicated in the
statement that:
No solution will be effective unless
the problem of the railroads is consid-
cred as an integral part of the entire
transportation problem of the United
States. whether by rail, highway, water
way, pipe llle vi dlr.
A part Of the remedy for some of the
besetting ills Of the railroads undoubt-
edly lies in legislation along the lines
pointed out by the Interstate Commerce
Commission in its last annual report
The principle of this remedial legisla-
ton would be proper regulation in the
public interest of all competitive forms
of transportation" such as restrictions
on the size and weight of trucks and
their lading as public safety may die
tate" taxation of trucks and busses,
imposing upon them fair share" of
the cost of highways; supervision of
truck and bus lines as common carriers
to prevent destructive and wasteful
competition and such regulation of their
rates and service as the public interest
will require.
The new Coolidge commission will
have the benefit of the Interstate Com
merce Commissions investigation Of
these problems. which has been under
way for some time, and of another IN
vestigation into such railroad prac-
tices as may adversely affect net earn
ings;," also in progress.
From the point of view of the Wall
Street Journal. however, one of the big
jobs ahead Of the new commission is to
suppress what Is politely referred to
as the rugged individualism' of railroad
executives. These men themselves have
another name for it when they talk
about each other behind closed DOORS"
A difficulty faced by the railroads now,
says this paper, arises from the failure
OF the railroad men themselves to i'm
press Congress, the Interstate Com
merce Commission or the public at
large that they have done what they
could do and ought to do to help them
selves" and this failure, in turn, is
attributed to their inability to sink their
personal differences or reconcile their
conflicting commercial interests to pre-
sent united front against the common
enemy. The new commission ought to
supply the unifying influence (which
cannot be produced internally"
Mr.. Coolidge's success in a new role,
more difficult in some of its demands
than the Job of President of the United
States, will be watched with more than
ordinary interest A unique feature
of the membership of the commission
he heads is the variety of interests
represented by such men as former
Gov. Smith of New York, Bernard Ba-
ruch, Clark Howell, the publisher, and
Alexander Legge Of Chicago, former
chairman of the Farm Board, now re-
turned to his duties as head of the
International Harvester Co. The hope
full sign in the creation of this COM
mission is an obvious determination to
undertake the solution of the compli-
Gated railroad problem under the aus
pices of citizens who will view their
task from the point of view Of con-
tributing to the national welfare
rather than benef1ting any special
group or class.
Tia puar%o pinn nicocfar