The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-21

not bring them to the clear.
The Interstate Commerce Com
mission has failed lamentably to
bring any real prosperity to the
railroads. Yet the I. G. C. has eX-
tended executive administrative and
judicial supervision.
Advises Common Sense
How can this most vital problem
be solved? BY common sense. IN
shaCkle the industry from all bu-
reaucracies. Personal initiative and
responsibility a'one can operate any
business success fully on the profit
motive! So-turn the railroads, bag
and baggage, back to their own
managers and executives. Let them
run the systems successfully and
prOftably under supervision. In re-
turn. make all the railroads. take
certain responsibilities and financial
burdens, particularly for certain of
the weaker units. That is the basis
of a two-part plan.
The first part of the plan would
be.
Establish an operating and flnan-
cial corporation known as the Fed
eral Railroad Corp, the stock to be
held by all the Class 1 roads. The
interests of all the rails thus would
be financially and in executive pow
er linked together in a company OPP
Grated by a central BOARD of direc-
tors with regional boards.
It is abhorrent to our Constitution
to have vital executive, judicial and
administrative functions all togeth-
er in the hands of any one bureau
or individual. Accordingly, it is in
tended by this proposed plan to split
up the executive, judicial and adj
ministrative powers now all held by
the Interstate Commerce Commits
sion into separate fur6tioning units.
Transit Secretary Proposed
The other part of the plan would
be SuD-olVldeQ:
(a) The executive powers, to eXer-
else that individual initiative and
responsibility without which private
enterprise will always languish, are
given in the first place to the pro-
posed new corporation.
(b) The supervision of the coop
Grafton as we'll as competitive trans
portation systems would be dele
gated to a Secretary of Transporta-
ton. a member of the Cabinet. Thus,
he would be charged with admins
trative functions.
Co The Interstate Commerce
Commission would give up its adj
ministrative and executive func-
tions. They would be transferred
to the Secretary of Transportation
and the Federal Railroad Corp, re-
spectively. 1t would act, however
in a judicial capacity to determine
questions that might arise between
the proposed Cabinet official and
the corporation. Appeal from the
commission would be to the United
States Court. Thus, the judicia
functions would be segregated tt
their proper sphere.
Rates Next Considered
Of all the important factors tha'
make or unmake railroad prosperity
the right to charge a certain amount
/ for the service rendered stands fore.
most.
The mandate given the I. c. c. tt
allow the railroads to earn around
So per cent became empty and flu.
tile, as now is we'll known, and the
decline in percentage of earnings
on property investment value
brought the railroads in many in.
stances to the brink of reorganiza.
ton and beyond. Rates should bt
controlled by those in charge Of
operations, but supervised by {
higher overseeing body.
So in this plan the Federal Rail.
road Corp. would initiate and con-
| troll the rate structure. Those
charged with the responsibility o.
operation should have the respon.
Sibility of initiating charges upor
which a proper functioning of oul
transportation depends. Proper
/ checks and supervision to cooper.
ating bodies, as will be explained
later, would be set up in the plan
The United States courts are the
final arbiters of all judicial ques.
tionS, which include objection!
raised by the Interstate Commerce
Commission as to any rate charged
This would require an amendment
to the Elkins Act, as proposed in the
plan.
Would Cut Red Tape
The plan contemplates q ready
workable program for an efficien
and prosperous transportation sys'
tenn. Decision must be made quick
" without red tape and carried L
/ performance unless vital differ,
/ enCeS arise.
In general, the Federal Railroad
Corp. would represent the executive
policy of the railroads. 1t coulC
function without hindrance unleS
I the Secretary of Transportation, tn,
supervisory body. objected In sucf
instances the interstate Commerce
Commission would hear and deter
mine the question.
In the next article. the method o