The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-14
WHEELER URGES
R, R. OPERATION
BY GOVERNMENT
Drafts Bill Putting End to
Private Ownership of
u. S. Lines.
By Scripps-Hoicard Newspaper Alliance
w CrTrNTCTON- rn,, - H.. IL.

By Tfpps-Hoicdrd Newspaper Alliance
WASHINGTON, Jan. 14.-For the
first time since the war, public
ownership Of railroads today gave
promise of becoming E major issue
in Congress.
Senator Burton K. Wheeler of
Montana, new chairman Of the Sen
ate Interstate Commerce Commit
tee, said that within two weeks he
would present a bill for nationalist
ton Of the railways. He would not
say how he proposed to make the
purchase, nor what the Administra-
tons attitude is.
1t is believed the Wheeler bill will
follow the tentative suggestions
made year ago by Joseph B. East
man, Federal Co-ordinator of
Transportation Mr.. Eastman did
not urge purchase except as an ulti-
mate solution. But he outlined a
tentative plan. A Government
corporation to be known as the
United States Railways would issue
guaranteed bonds to buy the rail
properties. The roads would be adj
ministered by five highly paid
trustees, aided by "a advisers.
Senator Wheeler said the roads
could be purchased either through
negotiation or condemnation. In
vestments in American rail lines
total some "a billions, but the mar
ket value of their stocks and bonds
is hardly more htan half Of that.
Would Stabilize Value
MY plan would stabilize the value
of rail holdings in insurance COM
panies and savings banks, result in
unit1cation of the systems, and halt
the banker-speculator control of the
worlds greatest transportation sys-
tenn" Senator Wheeler said. "Ulti-
mately it would mean more work for
rail employees, and cheaper freight
rates.
Outside of England, ours is about
the only country where railways are
privately operated"
A year ago, Cc-Ordinator East
man thought the country was flnan-
cially unprepared for taking over
the rails. Since then, sentiment for
public ownership has been rising.
Adding fuel to this feeling are the
current arguments before the Inter
state Commerce Commission, in
which the carriers are urging
freight rate increases in the face Of
the Governments attempt to hold
down costs to help its rehousing
program and the heavy industries.
The rails ask increases totalling
S117000,000 a year. This they say,
lis neceSsitated by the restoration
of wage cuts, the rise in material
costs, and other factors. The ICC
has sharply criticised some of the
big railways for spending more than
$84,0O0,O0O in four depression years
for advertising, legal fees and out
side accounting jobs"
Owe S437,OOO,OOO To q. S.
The railroads owe the RFC BIT
millions and PWA some 100 millions.
The roads have defaulted on some
112 billions OF bonds.
Rail labor, for the first time, is
veering toward public operation. On
Jan. 8, F. H. Fljozdal, head of the
intenance-Of-Way men, came out
for Government ownership.
Under Government ownership
public credit would take the place
of crippled private credit" he said.
THE railroads would not pay such
high interest. Some of the millions
saved could be used to provide work,
buy rails, ties and ballast and i'm
proved rolling stock, now badly
Public ownership would end
destructive competition"
The railroad workers weekly,
Labor, says: "a strong sentiment
that Government ownership is the
real solution Of the railroads ills is
developing ON Capitol Hill"