| Show Govern Government ent May Take Control of Carriers U. U P P. Executive Scouts Federal Ownership O of Systems I Government ownership of railroads railroads rail rail- roads is farther awa away from a reality today than a few years ears ago in the opinion of or J. J L. L Haugh of 01 Omaha vice president of the Union Pacific system and a director of at the Union I Pacific Stage lines who arrived here Tuesday The railroad executive declared that he did not think the proposed bill for lor government go ownership of oC all railroads in the country which Senator Sen Sen- ator atom Wheeler D D. Mont has prepared pre pared for lor introduction to congress will pass The government go might take over overa a few ew smaller lines line which are too far in debt to ge se tout lout such as was the case in the Denver Salt Lake railroad but I am positive e the larger lines which have ha had little or no government assistance will be obliged to relinquish to federal ownership ownership ownership own own- declared Mr Haugh Mr Haugh pointed out that he disagreed disagreed disagreed dis dis- dis- dis agreed with the senator from Montana Montana Mon Mon- tana lana who said that ownership ownership own own- of oC railroads is the only wa way out of 01 the perplexing dif facIng facing fac fac- fac ing private ownership and management management management manage manage- ment of this important branch of public utilities Rail Coordinator Has Ha Three Plans for Regulation Copyright ht 1935 United Press WASHINGTON Feb 5 UP UP New Ne deal railroad recovery policies pointed point poin ed today to receivership for several big carriers Transportation Coordinator Joseph Josep B. B Eastman has indirectly invited invite overcapitalized roads to take lake adva advantage advantage tage of new style bankruptcy laws law laws The new R It F C loan bill also is d designed designed de- de signed to encourage resort to reorganization reorganization through trusteeship rather tha than to avoid receivership In some rome cases Chairman Burton K Wheeler of or th the senate interstate commerce committee sponsors outright government owner owne ownership ship of railroads None here expects legislation at th this I session even remotely resembling a government ownership program In his transportation report Easman Eastman East East- man said he had considered three thre plans 1 develop present federal control over privately owned carriers carrier 2 consolidate railroads or 3 government go gov- government gov- gov ownership and operation Eastman prefers continuing present Continued d on Pate Pace Two uI O. U S SI S. MAY TAKE TAKEOVER TAKEOVER OVER CARRIERS Continued from P Pu e One control over owned transportation transportation trans trans- agencies He suggested r reorganization re- re organization of th the interstate commerce com corn merce commission and new legislation legisla legisla- tion ion to effect government regulation of railroads arid and their competitors including in in- eluding buses trucks pipe lines water carriers carriers and ultimately airplanes The Eastman program of ot legislation is is complicated It Is iI argued for instance instance in in- stance that cost records and other othel data upon apon which the commission could base rat rate structures for buses trucks an and other unregulated carriers are arc not available Instead of immediate imposition of complete federal regulation there are arc indications this session lon will vili not go gOI further than to require unregulated d transportation a agencies to obtain certificates certificates cere of ot public convenience and necessity Meantime from six to 12 class 1 I railroads I are in difficulty A section of the Eastman report generally emphasized em em- suggested any road unable to lo sustain it its capital structure should not hesitate to seek relief through the new style bankruptcy pr proceedings authorized au au- au by the bankruptcy act of March 3 1933 The government will foster rather than attempt to avoid certain receiverships receiverships under the new v ne R F C lending authority These receiverships probably probably probably ably will be sought this year earR ear R F C already has advanced to the railroads Outstanding railroad securities aggregate Wheeler yesterday esterday introduced In Inthe Inthe inthe the senate a resolution for committee Investigation of railway finances and Eastman's bud budget et of remedial legis legis- lation tattoo One of the Eastman bills would further amend the bankruptcy act Under it the scope of ot reorganization ion tion would include provisions modifyIng modifying modify modify- fn ing or altering the rights of oC creditors generally generall In other words the old style bankruptcy right of 01 first mortgage mortgage mort mort- gage gae bOi bondholders to an unchallenged prior claim against all assets would be eliminated |
