Evening star., 1934-10-12

Favorable comments are made by
the press on the proposal to create
cooperation among the railroad sys-
TENS of the country as substitute for
greater Government supervision. The
project would be carried out by the
newly formed Association of Amer
ican Railroads.
A suggestion from Chairman Jesse
Jones of the r. F. C. that the Gov
ernment be represented on the board
of the new organization is coldly re-
ceived, while the petition of the roads
for increased freight rates is ques-
toned in view of recent experiences in
reducing passenger rates.
ut is not apparent" says the
Springfield (MaSs) Republican,
whether the railroads will actually
start on a large scale to consolidate
their operations and eliminate need
less duplication of service before the
expirat ton or amendment of the emer-
gency act. A question might arise
over restraint of competition unless
railroad companies acted under the
co-ordinator'S orders, and it might be
awkward to ask authority from the
co-ordinator to do, in effect, something
that the co-ordinator was himself pro-
hibited from doing. However, much
coordination is possible with no re-
sulting change in services rendered to
shippers or the travelling public. The
probability Is that the situation will be
clarified at the next session of Con-
gress. President Roosevelt, in sign
ing the pension act, stated that fur
ther legislation would be necessary
So far as employees are concerned, the
pension act gives them protection
against unemployment, for when jobs
are abolished older men will be retired
and the others kept at work. One pos
sible hitch might be an agitation in
Congress for Government ownership.
1t is doubtful, however, whether there
is any demand for this among rail-
road labor or any substantial group Of
citizens"
Referring to intimations that "the
Government intends to do something
for the railroads" the Newark Eve
ming News holds that Chairman Jones
of the r. F. c. has been "a potent in
huence in the promotion of co-opera-
tion," and concludes that "the recent
organization Of the Association of
American Railroads will help to insure
against a conflict of interests arising
among groups of carriers to jeopardize
progress. as has happened in the past,
for practically all the Glass 1 roads
are committed to accept the decision
of the majority" The Newark News
also comments on the desire of Mr..
Jones that "the Government and the
public should be represented on the
new rail association" and, reviewing
the history of transportation, with
1.-The railroads being run by bankers
and financiers," wonders what the
result would have been if railroad men
had been allowed to run the railroads"
On this same subject the Macon
(Ga.) Telegraph remarks: 1T is in
teresting to note that many other
industries besides the railroads have
obtained or are trying to get Gov
ernment loans to help them take care
Of increased costs through N. r. A.
Is the Government to take the same
attitude toward these other enter
prises and insist upon a director on
the board or a voice in the manage
ment and operation by reason of its
making loans? Is this another in
sidious plan by which we are to ap-
proach Government ownership Of all
industry, along with the already tot
tering railroads."