Evening star., 1938-04-11

10 per cent JQtled 1CHen the Inter-
state Commerce Commission held
the aduanceS to less than halt of
this figure. The White House has
been attempting to Solue the prob
lem.
By the Associated Press.
President Roosevelt sent to Con-
gress today an Interstate Commerce
Commission Committee recommended
ton for millions in new Federal loans
to railroads. including s3Oo,OoO 900
for equipment purchases.
Mr.. Roosevelt himself made no sug-
gestions. his carefully worded message
putting the entire railroad problem,
both emergency and long range, in the
lap of Congress
He merely said "some immediate
legislation" was desirable to prevent
the railroads suffering serious finan-
cial and operating difficulties beteen
now and the convening of the next
Congress"
With the report of the three-man
committee of the l. C. c. and his mes
sage the President also submitted
comments from several of his advisers
on railroad matters.
These disclosed general agreement
on such broad points as unified Fed
eral control of transportation, relaxed
restrictions on rail loans, improvement
OF judicial reorganization procedure
and the development of a long-term
plan for eliminating duplicating serv-
ices and effecting some degree of
pooling of services if not extensive
consultations.
Long Struggle Seen.
Disagreement on methods to achieve
these and other ends, however, FORE
shadowed long struggle in Congress,
at least on the enactment of a perma-
nent program.
The most caustic criticism of the re-
port came from Treasury Secretary
Morgenthau, who in his comment
called it an 'overcautious" approach
to the problem. He urged immediate
establishment of a transportation de-
partment.
Mr. Roosevelt was emphatic on two
points:
Most of us have definite objection
to Government subsidies to the rail-
roads to enable them to meet the
interest on their outstanding bonds.
or for any other purpose" he said,
and most of us also oppose Govern
ment ownership and operation of the
railroads. do
He laid special, stress on a third
the fact that seven bureaus or COM
missions now handle some phase of
transportation
From the point Of view of busi-
ness efficiency, such as a private cor
poration would seek" he said, 1T
would seem to be the part of COM
mon sense to place all executive func-
tions relating to all transportation in
one Federal department."
Leaders Hope for Action.
He said he referred to this, however,
"only as one method which should re-
ceive congressional study"
Administration leaders were hope
ful the emergency program could be
sped through at this session.
The I. c. c. report recommended as
methods of affording immediate re-
lief:
That $500 100000 be made available
from Government funds for the pur-
chase of railroad equipment, the
equipment to be the security for ad-
vances.
That the R. F. c. be empowered for
IL months to make railway loans with
out certification by the Interstate
Commerce Commission that the rail-
road can meet its fixed charges.
That other forms of Government
credit be considered
That Government traffic pay the
full rate by eliminating land grand
reductions.
The committee members-Commis-
sioners Walter NJ w. Splawn, Joseph
B. Eastman and Charles D. Mahafie-
said they did not feel justified in ex-
pressing an opinion on whether rail-
road wages should be reduced. With
out making a definite recommendation
they suggested that Congress consider
changing the bankruptcy laws to per-
nit establishment of special courts to
handle railroad reorganization.
It was indicated at the White House
that Mr.. Roosevelt refrained from
making any definite recommendations
himself because the Interstate Com
merce Commission is an independent
agency. created by Congress and not
responsible to the Chief Executive.
In his comment, Secretary Nor
genthau urged that the President
request Congress to create immedi-
ately a department of transportation
with power to more vigorously and
properly coordinate our national
transportation facilities"
while I realize. as the report also
states" he said. that the creation
of such a new department is a prof.
ect of magnitude and difficulty
however, requiring = " much time to
get it under way and involving =
many considerations which would
provoke discussion see no reason
for delaying this strongly indicated
and desirable action"
The I. c. c. Committee recon-
mended as long-term program:
That Federal Transportation Au-
thority be created for two years to