The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-30
EASTMAN R. R.
PLAN SUGGESTS
5-MAN, CONTROL
Commission, When and If
u. S. Buys Roads, Would
Be in Full Charge.
II MAX HALL M NEIL
Times Special Writer

LINES special nIltcE
WASHINGTON, Jan. 30.-Five
persons, solemnly sworn to do their
job without regard to political party
considerations, would manage all
the railroad lines in the United
States-representing a twety-six-
billion-dollar investment - under
the tentative plan for government
ownership and operation suggested
by Federal Co-ordinator Joseph
Eastman.
Mr.. Eastman believes that the
logical result of the present plight
of the carriers is public ownership
and control. He is not yet ready,
because of several reasons, to rec
ommend this.
And yet, in his first report as
federal co-ordinator of transporta-
ton, Mr.. Eastman has laid down
the skeleton of plan that is GER
tain to be controlling factor when,
and if, congress gets around to Sc
riously discussing the problem.
For this reason, his tentative out
line of how government ownership
and operation could be brought
about is attracting attention here.
Plan Is Outlined
In the co-ordinator's words, here
is his plan:
Ownership - Properties to be
owned by a federal corporation
chartered by special act of con-
gress, the stock to be nominal in
amount and owned by the United
States. Corporation to be named
the United States Railways The
properties would be acquir d
through bonds of this corporation
guaranteed by the government.
Management-United States rail-
ways to be managed by board of
five, possibly seven, public trustees
appointed by the President, with the
advice and consent of the senate,
for terms of two, four, six, eight and
ten years, respectively, reappoint-
ments to be for ten years. Trustees
to be removable only for cause and
to have salaries the same as those
paid justices of the supreme court.
Trustees to serve under declara-
ton of trust solemnly worded, speci-
fed in the act, and binding them
to administer the properties with
sole regard for the public interest,
as efficiently and economically as
possible, and without regard to po-
litical party considerations.
Politics Would Be Banned
United States Railways to be con-
Quoted after the manner of a prl-
vate corporation and upon self
sustaining basis so far as possible.
Could be made subject to civil serv-
ice regulations, if desired, but prob
ably not necessary. Trustees to have
full control over all salaries and
wages, subject to complete right of
organization and collective bargain
! ing by employees, and to be pro-
hibited from employing, discharg-
ing, promoting or demoting any
officer or employee at the solicita-
ton of any public or political Off
Ger.
Advisory Council-Such a council
to be made up of tWenty-four I'M
paid members selected by groups
specified in the act and represent
ing business, agriculture, labor and
the like. Advisory council to be
consulted by trustees on such ques-
tions of general policy as either the
council or the trustees request to
be considered. Advice of the coun-
Gil on specific matters to be made
public, and also reason of trustees
for failing to follow any such advice.
Council to have right to procure
full information from the trustees
in regard to the affairs of the
United States Railways and at its
expense.
Taxation-Taxes to be paid by
United States railways to the fed
eral government like any private
corporation, and also to be paid to
states and municipalities, provided
they agree to uniform taxing pro-
visions approved by the trustees.
Could Issue Bonds
Bonds-Trustees to have power to
issue bonds of the United States
railways at their discretion to pro-
vide for debt maturities if no other
funds are available for this purpose.
Sinking funds to be provided for ali
! bonds.
Rates-Trustees to be under duty.
so far as practicable, of producing
net earnings sufficient to meet all
charges, including bond interest and
sinking-fund provisions. Surplus
earnings to be used for new prop
erty or for retiring debt, at the dis
erection of the trustees.
ies-Government to meet
any deficiencies in earnings, but the
repayment of such appropriations to
be a charge on the future earnings
of the corporation.
Regulation-United States rail-
ways to be relieved of regulation
by the interstate commerce COM
mission except over rates, account
ing, certificates for new construc-
ton and acquisitions of other trans
portation agencies.
Other Agencies-United States
railways to have power to acquire
other agencies of transportation,
subject to approval of commission.