Evening star., 1933-05-08
COMMITTEE HEARS
RAILROAD PROGRAM
Secretary Roper Appears Be-
fore House Commerce
Group in Hearing.
BY the Associated Press.

administration expects President Roose-
velt's railroad plan to work, Secretary
Of Commerce Roper told the House
Commerce Committee today that. upon
the results Of the measure, depend the
future Of railway transportation.
"And the results" Roper emphasized
will depend not 50 much on the Fed
eral co-ordinator Is on the railroad
executives themselves. For what they
accomplish they shall deserve full
credit"
The Secretary told Of the studies
leading to the recommendation, of work
done by q special committee headed
by Joseph Eastman of the Interstate
Commerce Commission, and Of sugges-
tions received from q railroad commit
tee-F. E. Williamson, president of the
New York Central Carl Gray, presi-
dent Of the Union Pacific: J. J. Pelley
president Of the New York, New Haven
q Hartford. and Henry Bruere, spokes-
man Tor savings banks.
Committee Plan Rejected.
Roper said the plan of the Railroad
Committee was rejected as putting "too
much authority Of Government in rail-
road executives"
THE purpose Of the bill Is to assist
the railroads to help themselves and Is
essentially experimental" he said.
The mechanics of operation consist
Of regional co-ordinating committees.
with whom Federal officer called q CO.
ordinator will cooperate for period Of
not more than two years. This co-or-
dinator IS to divide the roads Of the
country into three general regions and
maintain contacts with the roads OF
each region through committees of five
members for each region. These COM
mittees are to be selected by the roads
themselves, the right Of selection being
based on road mileage.
Labor organizations are not repre-
sented on the regional co-ordinating
committees, but they are safesuarded In
their rights OF collective bargaining.
and all the rights they now have under
State and Federal laws are preserved
to them"
In addition, the bill gives the In
terstate Commerce Commission super.
vision over holding companies anc
repeals the recapture clause OF the
Interstate Commerce act.
Confined to Co-ordinator.
Before Roper began, Chairman Ray.
burn explained that since his COM
mittee already had approved legislation
dealing with repeal Of the recapture
clause and the regulation Of holding
companies, it would confine its hear
ings to the co-ordinator Of the bill.
Roper said the bill was really m
answer to the plea Of railway man.
agement to be permitted to work out
their own salvation or at least be
granted reasonable time in which to do
so under Government management
There is no effort in this bill to
deal with railroad rates or with new
and unresulated forms Of transports
ton" he said.
1T Is permissive to the railway man.
agements to 60 ahead regardless OF
for limited time and to effect econ
omies which can be accomplished un-
der the plan set forth in the BILL"
DR.. Walter M. w. Splawn. commit
tee expert, followed Roper and analysed
the bill.
Representative Huddleston, Demo-
crat, Alabama, objected that the bill
did not provide horizontal rate de-
creases.
Asks About Fund Use.
Representative Cooper, Republican,
Ohio, asked about the disposition OF
any funds resulting from savings.
If there were large and appreciable
sums saved" Splawn replied, II pre-
sumo they would be shared with al
participating in ransportation-includ-
ing shippers and employees"
If the savings were not passed on,
Cooper asked. who would get them?"
The bondholders, I presume,
Splawn said
Representative Wolverton, Republi-
can, Of New Jersey. asked:
These savings would be at the ex
pense of lsbor?' he asked.
Part would result, no doubt, in lay
ing of trains and employees" Splawn
replied. Part will result from trans.
ferring some Of the expenses.
If very substantial economies arr
realized, some men and some roads vii
lose their jobs. do not think very
large economies can be realized unlesl
some men lose their jobs
Then the effect Of the bill Is to in.
crease the purchasing power Of bond.
holders and decrease the PURCHASING
power Of employees" Wolverton com.
mented