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'EVENING
PUBLIC EDaBRratTADEPHlA THURSDAY, DEOEMBIfR 18, 1910
f.
1 1
rePPER HITS AT BAN
ON SECTAlN AID
Prevents Clash in Constitutional
Commission Over Gifts
to Charities
PLANS FOR STATE AID
Rw o ntaff rormpoiirlmt
Harrliburj:, Drc. IS. Through the
ParKlentor.ii remedy nppllnl liy (ieorRC
Wharton Pepper, of Ihilnilclphiii, n
threntenrd resurrection of Hint logis
lnthe lmsbcnr, "denominational instil
tiitlonp," wns successfully Inhl nl i
vision commission In the Stntc I'apltol '
here.
As ren'ortrd by the eniqmtttee, t lie
HPt'tion nermlttlntr niinrnnrtntloTKa fur
charitable purposes was to be extemieel
no as to exclude ItiRtltiitioiiH "In which
there is denominational or sectarian
Instruction Kiven," or which arc "not
open for the .admission of nny persons
without distinction as Jo denominational
or sectarian beliefs."
In this form, it was pointed out, the
amendment defeated its purpose. The
clause "scetarhin instruction" wnslield
to bar from state appropriation such
worthy Institutions as hospitals con
ducted under religious control, in which
are chapels for religious services where
services according to denominational
ritual arc held.
Pepper Voices Criticism
"It is," said Mr. Topper, "as if we
ay to the poor people supporting these
hospitals and orphanages, 'we appre
ciate the religious inspiration that im
pels you to give jour money nnd serv
ices to aid unfortunates and sufferers of
Whatever creed, yet we cannot rewnrd
the service you are rendering to the
8tatc, because you openly practice that
religion which is the well-spring of
your useful endeavor.' "
Motion bv former Judge Gordon and
City Solicitor Connelly to refer the
Pepper substitute motion to the com
mittee was adopted unanimously.
Mr. Pepper's "pacifying" amend
ment reads:
"Appropriations for charitable, reli
gious, educationnl or benevolent pur
pose may be made to a corporation or
association not under the control of the
commonwealth, but engaged in work or
service deemed by the General Assembly
to be for the public good, provided thnt
such work or service conforms to stand
ards of excellence, presented by the
general law. or by an executive agency
established by general law, nnd provided
further that the benefits of such work
or service are in no way dependent upon
religious belief or denominational cor
rection, and provided further that every
such appropriation shall be made by a
Tote of two-thirds of the members elect
ed to each house.
Does Not Affect Veterans
"No such appropriation shall be
made to any person or community, but
this prohibitiotj shall not affect appro
priations for pensions or rewards for
military service, or for the retirement
of judges or of employes of the state,
of a state institution or of the public
school system."
A section of the constitution dcnling
with registration and insurance of land
titles, hitherto unassigned, was turned
' n committee No. 1.
Mr. Gordon, in by far tho most bril
liant oratorical effort shown before the
commission, attacked the proposed re
moval of the single term reduction
from tho governorship.
Chairman Alter, of the committee
fathering the recommendation, argued
that the limitation tended to show a
"distrust" of high officiuls.
Replying, Mr. Gordon moved the re
tention of. the constitutional section as
at present, nnd after remarks by former
Judge Fox, of Kaston, the motion pre
vailed. The commission ndjourned until noou
on January (I. It has finished prelim
inary .action on the first four articles,
a number of sections having been re
ferred back, while several recommend
ed to be changed will remain as they
Connection with the position of director
of transit, though it Is of equal if not
greater Importance, under existing con
ditions, than that of public; works,
Itnnslcy Holding Support
In the Third Congressional district
8hcrlff Harry O. Itanslcy, who is un
questionably the favorite with the Vuro
leaders, seems to have the regular cltv
committeemen of the. district pretty well
(ashed to his boom. Indeed, it would
not be Surprising If (hey were not
alieady pledged fo his support.
The Independent!) have not settled
upon n cnndldate : indeed, no names
In' o been definitely suggested to suc
ceed Congressman Moore. The Inde
pendent manufacturers of the district,
those who are most vitally interested in
the question, lum- glen mi. Indication
of n choice. It is probable that noth
ing will be done until the new admin
Istiatlnn enters upon Its duties. Any
how the date of the special election to
fill the vacancy will not be set by Gov
ernor Hprqul until Mr, Moore gives
tho word.
1 i -
Democrats to Pick
Leader on Saturday
Cnntlnned From Piiee One
day nnd night. The college presidents
have haunted the Senate office build
ing, the mild reservatlonsts on both
sides have kept at It. Hut without
result.
The peace efforts now arc being ad
vertised. Mr. Underwood, having n
campaign for the leadership on his
hands, has shouted from the houstops
about what he wns doing, Following
his example, every one else has begun
to talk. A little while ago men went
about In black 'masks gumshoeing their
way to a compromise. Now they aro
compromising with brass bands.
MAY TRY TO FORCE
KNOX PLAN THROUGH
Jurors Who Will Decide
Fate of Clara Bartel
1 Harvey K. Rtrousc, forty
seven years, married, two eliildrcu,
Plumstcail township, farmer,
2 Wilmcr W. Cornell, sixty
two years, ex-county treasurer,
married, Doylcstown, retired.
.'! Clement , Kberhnrdt. sixty
three years, unmnrrled, Spinifers
town, Pa., retired.
1 Edward K. Ualdeman, fifty -seven
jenrs, mnrried, four children,
New Hrltain, Pa., farmer.
." Herman I. lleeker, sixty
three years, mnriled, one child,
liensalem township, Pa., farmer.
II William Soilen. fiftv-three
yenrs, mnrried, four children,
Wrlghtstown, Pn., fanner.
7 John C Davis, tifty-veven
years, married, two children,
Doylestown, caretaker.
8 IMgar Wllgus. forty-three
years, married, two children,
Doylcstown, laborer.
0 Isaac Ioatherman. fifty-two
years, mnrried, one child, Dojlcs
town, teamster.
10 Mahlon II. Dungan, seventy
three yenrs, married, three children,
retired painter.
11 Joseph A. Ttuos, fifty-eight
years, Doylestown, manufacturer.
12 William Penrose, Sr., fifty
two years, Warrington, retired
farmer.
Girl Says She Didn't
Mean to Kill Father
Independent SpJ.it
in Council Dream
Washington. Dec. IS. (By A. P.)
Possibility that the Senate peace
treaty fight might be resumed actively
before the holiday rrrc&ri ihvloped to-
nny, wnen the tnrcign relations com
mittee wus called to meet Saturday
morning. The purpose of the meeting
wns not announced, but lenders indi
cated that an effort pi nimbly would be
made to get committee nctiou 'on the
resolution of Senator Kuox to declare
a state of pence.
Senate managers hoped to adjourn
for the holidays Saturday night, by
which time, it wns generally conceded,
there would be little possibility of
bringing the Knox measure to n vote.
!ome members of the committee expect
Iemocratie opposition to bo so stub
born that even committee action will be
impossible at Saturday's meeting.
Some of Senator Underwood's, friends
were outspoken In criticizing Senator
Hitchcock's call for a' caucus Satur
day to select a Democratic leader in the
Senate, nnd iiitimnted they might en
deavor to postpone a vote until after
the holidays.
"It's an outrage." said Senator Har
rison, of Mississippi. "Up to now
Hitchcock foiccs have been urging that
the conference be postponed until after
the treaty Is settled anu niso uniu more
Democratic senators are in town. There
arc half a down of Mr. Underwood's
friends absent now who cannot get back,
in time." L , .
A nnmnrnmise was suggested iu some
quarters today, proposing that Senator
Hitchcock be made leader and Mr.
Underwood vice chairman or assistnnt
leader of the Democratic conference, a
position which would give Mr. Under
wood management of many Important
measures.
The Alabama senators supporteis
were said to desire disposition of the
trcatv before the leadership election, so
that "the question of indorsing Senator
Hitchcock's management of tho treaty
might not be an issue.
Some senators said the Democratic
leadershh) contest might have consid
erable bearing on the immediate out
come of the treaty controversy. Sena
tors Hitchcock and Underwood have
differed regarding future procedure, the
former opposing and the latter agree
ing to accept as a last alternative the
plan of Senator Knox.
It has been said at the White House
that, irrespective of the outcome of the
leadership contest, Senator IlitchcoeK
will continue as the administration
leader jn the treaty fight.
FIND HARRY ADAMS GUILTY
ContlnoKl From re One
, Mr. Moore nnd his colleagues whole
' hearted support
No Outside Director",
But it can be put down on the tablets
of prophecy, and underscored at that,
that there will be no outside dictators
under the Moore regime. '
The councilmnnic minority, other
wise known, as the Vare following, nrc
standing firm. It Is what might be e-
x pected." It Is, under all considerations,
the logical thing for them to do. They
have centered their hopes on Mr. Hall
as their candidate for president of that
body. The majority choice rests be
tween present Common Councilman
Francis F. Uureh and Select Council
man Richard Weglein. It is wholly
improbable that, under any conceived
condition, the fruits of recent victory
would be thrown to the winds and the
success of the new charter be jeopnr-
-dlzed by n personal and disgraceful
STwranglc over the presidency of
Council.
The chairmanship of the important
finance committee is not, I think, n
matter of doubt. The present efficient
chairman. Joseph P. Gaffney, will
ecarcely succeed himself, in. spite of ills
ability and his exceptionally intimate
knowledge of municipal finances. It
Is because tho factional lines of frnctuie
will widen, nnd the lineup be more teqsc
on the basis of Council's organization.
At tho same time the county offices
are going to prove a harbor of refuge
to hundreds of regulars, or Vare men.
There arc about 2000 of the.se places
and it is pretty generally recogni.ed
that Senator Varo will control certainly
the majority of them. The Vnrcs arc not
''out in the cold by nny moans. Besides
these county offices do not come under
the civil service rules nnd pennltics that
control in the cose of municipal jobs.
Old Lines Still Intact
Altogether It is nn interesting situa
tion. In a way it still leaves the old
pre-election factional lines intact.
) iliero arc muse mm iiuuw m rut
in the appointment of Jnmes T. Cor
telyou to be director of public safety
the shadow of clever national politics.
It would not bo surprising if such were
the fact. The appointment of Mr. Cor
tclyou undoubtedly has a wider signifi
cance than appears on its face. George
R. Cortelyou, of New York, brother of
the new director, a prominent figure
In national politics, a political legatee
of Theodore Roosevelt, and with an uu
Instructed delegation to the Republican
national convention from Pennsylvania
the combinations that might be effected
under certain contingencies arc a inrc
subject (or speculation.
The selection bv tho Mayor-elect of
a director of public works is still hung
Vup, It will not be, I am convinced, a
local man, If lie comes from the out.
side the choice will fall on one who
will bring to the position unquestioned
ability and high reputation. I.ikn the
test of the Mayor-elect's appointments
it will meet with the endorsement of
th public,
Nvthlptj' is UeariP-ns ,ejf of names iu
Slayer of Constable Convicted of
Manslaughter at Doylestown
Doylcstown, Dec. 18. The jury in
ii... linn- AilnniH murder ease returned
at 8:30 b'clok last night, after being
out six hours, and returned a verdict
that Adams is guilty of voluntary man
slaughter.
Ah the jury lecommended clemency,
it Is probable the sentence will be im
posed today.
Conllnunl lom rKP One
shoulder, her body shaken with sobs.
He patted her bright hair and whispered
words of comfort to her until her
breath came more quietly, and she was
able to raise her head once more, look
ing from swollen nnd tear-brimmed
eyes nt the angry woman testifying
ngainst her.
Come Early fo Trial
It was the first chance for a mem
ber of the dead man's famllv to take
the stnnd against the girl. Daily, for
almost a week before the trial, members
ot the Uartel family hne come to town
from their outlying farms, so as to be
ready for the first moment of the pro
ceedings npainst the girl.
Dnllv. diirinir the Adams murder caRC.
which preceded the opening of Clnra's
trinl yesterday, they hnvo sat in n grim
row on one of the front benches iu the
country courtroom, the women in
blnck, the men In their best clothes, a
grim, portentious array of angrj leln
tives, Mrs. Steinmueller's bitter testimony,
so voluble nt times thnt the common
wealth's attorney had to cheek the flow
of words, evidently found small favor
with the rest of the spectators in the
courtroom. Dyes were turned from the
irntc woman 'on the stand to the girl,
nnd then back again. The looks were
nil of pity for Clara, nnd of ill-"con-cealed
anger for the state's witness.
Once Mrs. Steinmueller broke into
voluble German, giving the words of
n conversation she had with Mrs. Hnr-
tcl. She w'as stopped Immediately and
told to repeat it in Knglish.
The witness has reddish hair and
green eyes. She was dressed all in
black; a black skirt, black sweater and
a drooling big blnck hat, with a blnck
..crepe veil draped on it. She carried a
black coat over ner arm.
Breaks Down at Sl?ht of Gun
Clara wept opening for the first
time when the Miotgun with which she
killed her father was produced in evi
dence, along with some shotgun shell'
and identified by one of the stnte troop
ers who had been summoned nfter the
shooting. Clara looked at it calmly for
a moment, then turned away, her ejes
filled with tears: She sobbed audibly.
and buried her face in her handkerchief.
I Sirs. Steinmueller's testimony was
! not sensational. She told of having
gone to tne House to Bee ner uromers
body. She said she had gone upstuirs
and had confronted Mrs. llartcl and
Clara, demanding who had done the
shooting.
Clara, she testified, answered that
she had done it, after asking Mrs.
Steinmueller if she would stand b her.
On cross-examination Mr9. Stein
mueller could not be pluned down to a
definite statement of the time of her
visit, or of how long she had remained
in the house.
Says She Was Told to "Get Out"
At first, Mrs. Steinmueller testified,
mother and daughter had ordered her.
iu German, to "get out." During the
lime the witness was in the house, she
said, Clara had shown her a ring licr
grandfather had given her, nnd a new
dress she hod receiyedr and also read
a letter which had just come from her
sister, who was in Philadelphia.
The testimony of other witnesses dur
ing the morning session was unimpor
tant, Mrs. Otllly Scese, n muste teach
er, first to arrive nfter the shooting,
told of scHng the body, nnd Mrs. ltnr
tel and Clara standing near It, hyster
ical. Three members of the state police
identified pictures of the dwelling, the
shotgun and gave other testimony of a
perfunctory and preliminary nature.
Public sentiment is evidently In favor
of the girl, District Attorney Keller
said frankly, after the morning session
of the trial.
Got I.lttlo from Witnesses
"I hnvo never known public senti
ment to be so strong In nny case' be
snld. "I got little out of the common -wraith's
witnesses today. It was Im
possible to develop certain angles of
testimony because I was powerless to
usk my owu witnesses leading ques
tions." Through thn morning hearing, Mrs.
T t m tot. Clara's mother, sat with Mrs j
Nightengale, the probation officer who
lias had Clara in charge, and Miss
Ullzabeth llnehr, Mrs. Itartel's sister.
They were directly behind Clara, who
sat beside her counsel, and the girl could
not see them.
When court adjourned mother nnd
daughter, while most of the spectators
filing out of the couit room watched
them with moist ejes, hugged nnd
kissed, and cried n little.
Clara handed her limit a little holly
covered box,' which the girl hod held
all during the session. Miss Ruchr
opened It, nnd when she found it con
tained n pink crocheted joke which the
girl hnd made for her during the das
of waiting for the trial to begin, the
elder woiunn began to cry.
Aslis About Girt
"What's the mutter. Auut r,lin
heth?" the girl asked. "Don't you like
the gift I made for joii?"
"I wns just ijo surprised," said Miss
Raehr. She hugged the girl to her and
kissed her.
"Did you hear her"' Did you henr
Aunt Annie?" asked the girl of her
mother, referring to Sirs. Steinmueller.
"It isn't right for people to sny things
like she said."
Dr. O. A. Paikcr wns the first wit
ness called. He told just bow he found
things upon tne morning of August --.
when he entered the llnrtel home nnd
saw the father Ijlng dend upon the
floor. When he told of "another wom
an's letters" he sprang n sensation.
The doctor when called roe to his
feet, shoved his chair bnck and with
considerable noise made his wayNnto
the witness clinir. lie glanced over to
ward the child, nnd said, "Yes, that's
her, Clara llartol." He said It in gentle
mnmier, but the words made the child
realize more keenly tlinn ever before
that she was the chief figure In this
tragedy, thnt the whole thing was nbout
nerscii.
She tried to smile, n wan little smile,
and then quietly cried. lliickmnn
squirmed around in ills chair to look,
and sow her shiver slightly. He went
nCC In (lin fltliln ii l.n.n 1. 1.. I.I.. f..u
lined coat hnd been laid, fumbled nbout
i) bit then carried It over nnd spread
it nbout Clnra's shoulders.
Then ho sat down again, and Doctor
Parker told what be hnd to snv. To
begin w-llh. be snld, "be had known the
Uartel family six jears. had been their
physician, in fact. He had been called
to the Uartel home near Ildgcwood,
nn the. morning of August 22, he said,
so he drove over and got there about
half past ten.
When he entered the house, he said,
he suw some people standing and sitting
about the body of .Mr. llartcl lying
upon the floor, lln saw Clara llartcl
and her mother and Mrs. Herse, Clnra's
music tcndicr, nnd two men he did not
know.
An examination he said, showed that
Mr. llnrtel was dead, bud been shot in
the buck nt close range. He knew It
wns close rnnge, he cxplnlned, because
of the powder marks,
"Broadway Limited" Back Saturday
The "Ilrondway Limited," the twenty-hour
train between New York and
Chicago, will be restored next Satur
day. It wns discontinued on December
10 owing to the coal shortage.
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AS
HATEMENT TO TBE PUBLIC
I
THE SENATE COMMITTEE on Interstate Commerce
held hearings on the railroad problem practically with
out intermission from January until October 23,-1910,
when a Hill (S-3288) was reported favorably by that Com
mittee to the Senate.
Adequate and prompt legislation has been urged by the
President. The result of the Committee's efforts is a Bill
which is non-partisan and is responsive to that necc-sity for
remedial legislation which is lccognized by the President, by
both political parties and by the American public. This Bill
is known as the Cummins Bill.
Tho House Committee on Interstate and Foreign Com
merce also reported a bill dealing with certain features of
lailroad regulation, which passed the House with sundry
amendments. This is known as the Esch Bill. It does not
deal with certain underlying problems such ns definite instruc
tions for rate making, without which private ownership and
operation will be imperiled through the old warfare between
the managers of the railroads and organizations of shippers,
and as the result of distrust on the part of the general public
and the unworkable basis of old laws.
' Advocates of government ownership oppose both bills
and advocate substantial extensions of tne period of federal
control, with that end in view.
DELAY ENDANGERS RESUMPTION OF PRIVATE
OPERATION
The railway properties and the traffic machinery are suf
fering from the delay in the return of these properties to
those responsible directly and solely for the preservation and
rfficiency of individual &ystcms. -We do not suggest that this
Is tho fault of the personnel of tho Railroad Administration.
It is the unavoidable consequence of consolidated operation
by a temporary governmental agency, the first duty of which
is to the public treasury and which is not and can not be
organized from the standpoint of permanent ownership and
conservation.
Extension of federal control longer than necessary to
secure tho adoption of indispensable remedial legislation
would further prejudice nnd demoralize the established
agencies of transportation and make resumption of private
operation on a sound basis increasingly difficult. Tho drive
towards government ownership, which would constitute a
blight upon American policies, restrict development, and
enormously increase the complexity and friction of federal
government, can be effectively checked only through prompt
and decisive action by Congress.
This action must bo through legislation which will put an
end to the attitude of suspicion entertained by the public or
artificially stimulated toward tiie American railroads. It must
also put an end to the profound apprehension on the part of
the railroads and the investing public as to the attitude of
the rate-making authorities toward these properties.
Such legislation must prevent the possibility of exploiting
security issues and like possible causes of public distrust. It
must put an end to the-warfarc between shipper and railroad
management over rates, by subjecting rate levels to a work
able statutory tet and adapting these rates, as suggested by
the United States Supreme Court over forty years ago, "to
the circumstances of the different roads" so that necessary
units in the competitive system will not be starved to death.
This result is to be expected under the old laws because of
the disposition of tho rate-making authority to depress the
late levels unduly in order to prevent what would be re
gal ded as an excessive return upon the value of the property
of individual roads in the several competitive groups on which
unusual density, of traffic might otherwise produce excessive
results.
BOTH BILLS GREATLY EXTEND REGULATION
Both Senate and'House bills evidence the inflexible pur
pose to extend the system of federal regulation of interstate
carriers, begun in 1887, to the limit deemed consistent with
private enterprise. We do not stop to oppose or commend
that purpose. It is fixed and unavoidable and is rcsponsivo
to the weight of opinion expressed at the hearings before the
two committees. Any bill which passes will undoubtedly con
trol security issues, new construction, car supplies, facilities,
and, to some extent, service and operation.
A business thus regulated must have public confidence
and is entitled to reasonable statutory protection. To return
these properties without adequate legislation is to destroy
them. . .......
If this protection is assured, the investors in railway se
curities can well afford to relinquish speculative or excessive
returns. They are today no longer dealing with a speculative
possibility. Put .they must be assured of a fair chance to
receive a reasonable return if they produce the energy and
efficiency to earn it under rates found to be adequate for the
avcrnge condition in each group.
The House Bill goes to the limit of regulation without
any provision remotely tending to recognize the corresponding
obligation of Congress for protection from its own elaborate
machinery. The Senate Bill as reported (S-3288) contains
fair recognition of that obligation in Section C. As new matter
is not added in conference under the usual parliamentary
procedure, it is plain that tho Senate Bill should be passed by
the Senate and sent to conference with Section 0 unimpaired.
PROVISIONS OF SECTION 6 INDISPENSABLE
Section 0 is fundamental. It is so indispensable in the
existing crisis that we trust that Senators and Representa
tives desirous of u sound system of competitive American
transportation may not, upon tho floor of the Senate or in con
ference or upon tho question of concurrence, dcluy or en
danger the passage of a bill containing its provisions.
This Bill is not in all respects as the Association of Se
curity Owners would desire, but wo recognize that legislation
is a practical process, tho result of tho action of many minds,
nnd that this Bill is the result of prolonged, patient, cour
ageous, well-informed and non-partisan action on tho part of
tho Committco which reported it. As such wo trust that it
will bo substantially accepted by tho Senate and sent to con
ference, where such differences as may arise as to other
features of the bill will bo reconciled.
December 17, 1910.
The most elementary good faithrrcpudiates the insistence
being made in sundry quarters that the Government should
consult primarily its own financial interest or should experi
ment, with a view to ultimate seizure, in respect to a property
which it holds in trust for restoiation to tho owners in as
good condition us when received and ns soon after the ter
mination of the emergency, ended November 11, 1918, as that
can be done with due regard of the integrity of the property.
Section G reduces the rate problem to a simple matter of
adjustment to maintain tho proper relation of rates. This
marked simplification is by the uso of n statutory measure
applied to tlie aggregate operation incomes of tho railroads
in each competitive group. The Commission is to see that
rates produce 15 ',4 (plus of l''o, optional with Commis
sion.) on the aggregate value of all roads in tho group, leaving
each load in the group free to earn as much us it can under
competitive conditions, but limiting the interest of each in
dividual carrier in individual rates to a fair and responsible
return upon tho value of its property, plus n stated proportion
of any excess it may cam which is allowed as a stimulation
to continued energy and efficiency.
RETURN IS ON PROPERTY VALUE NOT ON
SECURITIES
The piotcst against this provision proceeds partly from
those who, like the advocates of the Plumb theory, assert that
tho provision will vitalize watered securities. It has nothing
whatever to do with stocks, bonds or sequrities. The ratio of
return is to be estimated on tho value of the property as. de
termined by public authority (the Commission). Section C
of the Cummins Bill and the Fifth Amendment to the Con
stitution apply the same test: A reasonable return on the
value of the property. The only difference is that Section C
defines the rate of return at 5V4 on value, with one-half of
1 optional with the Commission for unproductive improve
ments, such as grade crossings, whereas the Constitution left
that figure open for legislative or judicial definition. Section
6 supplies the definition.
Other provisions of Section 6 regulate excess earnings by
requiring a portion of any excess over 6 to be paid into a
public fund for expenditure by the Board of Transportation
in the public interest in railway transportation. Protest has
been made against this provision ns confiscating the earnings
of those roads which, by reason of their strategic situation or
dense traffic, are able to earn what may be termed excessive
or unnecessarily large returns. The application of tho pro
visions of Section 0 to the roads which have made that protest
discloses nothing to impair their sound future.
The only thing "confiscated" is the opportunity for what
may fairly bo termed excessive return on the value of the
investment.
There is nothing novel or unexpected in applying a statu
tory limitation upon earnings to enterprises long since subject
to rote regulation and now under strict governmental control
in all of their functions.
ERRONEOUS STATEMENTS BY THE WALL STREET
JOURNAL
Among the most active spokesmen for those opposing Sec
tion 6 is "The Wall Street Journal," which has repeatedly as
serted that the Cummins Bill embraces a Socialistic scheme
for leveling profits of competently managed roads for the
benefit of so-called weak roads.
The committees of the Association of Security Owneis
long since reached tho conclusion that a definite rate of return
on the aggregate railway investment was more desirable than
a chance for speculative returns to a few railroad unlikely
to be realized even by them under existing conditions.
It was also recognized that Congress would never concede
a reasonably definite assurance, unless accompanied by a lim
itation upon possible excessive earnings. The accuracy of this
thought has been doubly demonstrated. The Esch Bill pro
'vides for no limitation on earnings and therefore gives no
reasonable assurance, no definition, no instruction. The Cum
mins Bill, on the other hand, proposes in Section G a fairly
definite assurance and regulates earnings to a fair return.
Section G permits carriers to retain G, upon the fail
value of their property, if they can earn that much from com
petitive rates established for the group, plus a portion of any
excess they may earn. What is discernible in the present out
look to justify hope for greater return? Certainly nothing
to justify the wager of the whole transportation system on the
chance.
EARNINGS OF ONE ROAD NOT GIVEN TO ANOTHER
The Cummins Bill crcates a Board of Transportation, to
which it gives absolute jurisdiction over the general railway
fund to be "employed or invested or expended by the Board in
furtherance of the public interest in transportation by car
riers subject to the Act to Regulate Commerce in avoiding
congestions, interruptions or hindrances to tho railway serv
ice, etc.
Tho primary purpose of the fund as shown by Section G
is the p'urchuso of equipment or facilities to bo used "wherever
the public interest may require." While loans to carriers are
permitted on terms to bo fixed by the Board, the fundamental
consideration is the public interest, and there is no warrant
whatever for the assertion that the Cummins Bill provides for
revenue to bo taken from one road to be given to another.
The public will get the service and the excess earnings
paid into the fund will not bo pyramided for tho purposes of
rate making or "given" to any road or employed on any
favored class of roads.
The percentage return fixed by Section G is not upon
stocks or bonds or oven upon tho value of individual railway
property, but upon the actual value of the entire transporta
tion machine in each rato group, as determined by the Com
mission; and the ratio of aggregate return on the value so
ascertained is fixed at a figure at which no one can justly com
plain. Nor can any road attain that ratio of return upon its
own value without earning it on n competitive basis. There
is neither extortion nor .stagnation in that process.
Desirous only of a sound and wholesome future for tho
Tailroads based on deserved public confidence, wo de.siro to
emphasize the necessity for prompt and definite legislation.
DARWIN P. KINGSLEY, New York
HALEY FISK, New York.
JOHN J. PULLEYN, New York.
W. D. VAN DYKE, Milwaukee, Wis.
LOUIS F. BUTLER, Hartford. Conn.
GEORGE K. JOHNSON, Philadelphia. Pa.
SUB-COMMITTEE,
NATIONAL ASSOCIATION OF OWNERS
OF RAILROAD SECURITIES '
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