The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-09-28


NdttrO0d and more evident
Legislation that the session OF
congress converting
n January is due to take up the ques-
ton of railroad legislation. Its nature
Ia yet undetermined. Its scope Is still
yelled In secrecy. There Is the certain
ty, however, that the Roosevelt admin
istration is prepared to present far
reaching proposals dealing In new
way with the railroads of the country.
The first intimation of this probable
ity came recently through visit to the
President by Joseph B. Eastman, fed
eral co-ordinator of railroads. Mr..
Eastman let 1t be known after an ex-
tended conference with the President
that railroad legislation was being
drafted and that it would be presented
to congress with the request that 1t be
placed near the top Of the must leg
islation desired by the President Since
Mr.. Eastman's visit to the summer
white house at Hyde Park, New York,
however, it has been next to impossi-
Bile to discover additional facts respect
ing the railroad program being worked
out by the brain trusters and Mr.. East
man.
On unquestioned authority, never
theless, it is made to appear that Mr..
Eastman, or his professor aides,
have an idea that there ought to be an
other member of the cabinet and that
this member ought to be the secretary
of transportation. On equally good
authority it can be stated that the
present plans programs under the New
Deal have proved to be like railroad
timetables. subject to change without
notice-are designed to give the federal
government additional supervisory au-
thority over the railroads. Indeed.
some insiders claim that Mr.. Eastman
may go as far as proposing that the
government buy the railroad properties
and lease them back to the railroad
corporations for operation. This phase
of the program remains wholly undis-
closed beyond rumor and gossip, but
1t seems proper to say that, thus far,
there has been no denial issued from
any responsible quarter.
1t Is my understanding that numer-
Gus groups In the country are organ
izing for q bitter fight 1t is well
known, of course, that the railroads
themselves have reorganized their as
sociatiOns into one solid and substan-
tial agency which is to act as their
spokesman. Indications are that out
%l,o
agements will come trade body to be
known as the American Railway insti-
tute, which will serve as the spOkes-
man for all of the railroads. Plans
call for establishment of headquarters
in Washington where the group will
be in close contact at all times with
the shifting trends of governmental
maneuvers respecting the railroads
There are, in addition. several other
associations who lately have become
active. They are said to represent in
terests whose relationship with the
carriers is such that further ham
stringing of the railroads and further
restrictive control by the federal gov
eminent will have a direct reaction on
their business. Consequently they feel
that the reopening of the fight over the
railroads is almost as much their battle
as it is the battle of the railroads and
their shareholders.
Coupled with the certainty that there
will be railroad legislation considered
by the Forthcoming
Federdf session of congress
Ownership is a strong renewal
of activity among
advocates of government ownership.
In previous letters, | have reported
ownership advocates in and out of the
administration were said to be working
on plans for legislation designed even
tually to result In federal ownership of
the transportation systems. How far
this has gone cannot now be stated.
1t can be said definitely, however, that
the movement is gaining force and OBJ
servers well acquainted with the I'M
dercurrent of government plans insist
that the railroads have a battle on
their hands that is larger than the i'm
mediate prospect of additional restrict
i've legislation.
In some quarters in Washington we
hear the expression that the admins
tration plans to seek enactment of reg
ulation for the bus lines and other car
riers that are in competition with the
railroads. This has been tried several
times before, but nothing has come of
it because congress heretofore has re-
fused to be serious about legislation for
control of the bus lines operating over
state and national highways. 1t is to
be recalled. though, that congresses
heretofore have not been as subservi-
ent to the Chief Executive as has been
the case since the New Deal became
operative year and a half ago. So,
the extent to which the administra-
ton will or can go respecting control
Of the bus lines seems at this writing
to be highly problematical. Authori-
ties tell me, however. that the Eastman
plan, which must be assumed to have
Presidential approval. will be compre-
hensive and Of itself, should give an
indication of the severity of the fight
that is to come.
The argument that, / am told, is GO
ing to be advanced for further federal
encroachment on pri-
In sorry vate management of
State the railroads has to
do with the sorry
state in which Ii is claimed the roads
find themselves as result of the de-
preston. They have borrowed about
s4OO 600 900 from the Reconstruction