Eastman Answers

Is there need for a radical change in the organization, conduct and regulation of the railroad industry which can be accomplished by Federal legislation?

By formal resolution Congress last spring asked that question of Joseph Bartlett Eastman, radically brilliant Interstate Commerce Commissioner whom President Roosevelt made Federal Coordinator of Transportation and his alter ego on all rail matters. Last week Coordinator Eastman answered the question in a 350-page report, the core of which was: "Theoretically and logically public ownership and operation meet the known ills of the present situation better than any other remedy." But: "I am not now prepared to recommend . . . public ownership and operation . . . for the principal reason that the country is not now financially in a condition to stand the strain."

His advice to the President and Congress was to: 1) encourage the initiative of private management "at least until it is shown that this cannot be relied upon"; 2) relieve the railroads from the operation of all Federal and state anti-trust laws; 3) continue and expand a liberal government lending policy until private capital can be obtained; 4) reorganize the 44,000 mi. of railroad now in receivership or bankruptcy with a sharp reduction in their fixed charges; 5) enact legislation for the I. C. C. to compel consolidations; 6) revise the clause in the Emergency Transportation Act limiting any reduction in the number of railroad employes.

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