members of The Association of American Railroads, reserving the right, however, to cease to be members upon the expiration of ninety (90) days after having given written notice of their intention to withdraw from membership; provided, that if the railroad represented by the undersigned withdraws from membership, it shall nevertheless be responsible for its proper proportion of obligations incurred while it was a member; and provided, however, that any atcion of The Association of American Railroads, its Directors, Executive Committee, officers, agents, employes, and committees shall, as to the undersigned Trustees (Receivers) and the properties under their charge, be subject to the approval of the Court having jurisdiction over said Trustees (Receivers) and the property being administered by them; and said Trustees (Receivers) shall not be obliged to submit any matter or issue to arbitration as provided in said Plan unless and until they first receive the authority of said Court so to do.

Trustees (Receivers)

APPENDIX No. 1

Resolution adopted by Member Roads of the Association of Railway Executives and the American Railway Association at a joint meeting held in Chicago, Illinois, on September 21, 1934

WHEREAS at a joint meeting of the Member Roads of the Association of Railway Executives and the American Railway Association, duly called as provided in the respective Articles of Association of the two organizations, there was submitted to the membership of both Associations a proposed plan for consolidating the two Associations and certain other Associations and organizations into the Association of American Railroads, hereinafter sometimes called the Association, which proposed plan has been approved and recommended to the Member Roads of both Associations by the Advisory Committee of the Association of Railway Executives and the Board of Directors of the American Railway Association, respectively; and

WHEREAS the roads constituting the American Railway Association have heretofore established and have for many years maintained a statistical and research organization known as the Bureau of Railwy Economics; and

WHEREAS the said railroads constituting the American Railway Association have heretofore established and have for many years maintained an organization known as the Railway Accounting Officers Association for the purpose of organizing and conducting more efficiently the accounting departments of the carriers, unifying and standardizing railroad accounts, interchanging ideas and experience among its members, and otherwise benefiting the railroads members thereof within the scope of the Association; and

WHEREAS the Plan contemplates that the Bureau of Railway Economics and the Railway Accounting Officers Association shall likewise be consolidated with and become a part of the Association of American Railroads; Therefore,

RESOLVED, That the said Plan creating the Association of American Railroads be and the same is hereby approved and adopted.

BE IT FURTHER RESOLVED, That John J. Pelley, F. E. Williamson, W. W. Atterbury, Daniel Willard, John J. Bernet, C. R. Gray, Hale Holden, L. W. Baldwin, Fred W. Sargent, H. A. Scandrett, Ralph Budd, Fairfax Harrison, L. A. Downs and W. R. Cole are hereby elected as the first Board of Directors of the Association to hold office until their successors are elected and assume office as provided in the

Plan.

BE IT FURTHER RESOLVED, That all roads members of the Association of Railway Executives, of the American Railway Association, of the Bureau of Railway Economics and of the Railway Accounting Officers Association which by voting for this Resolution shall signify their assent to the Plan, and any Member Roads which shall hereafter signify their assent, are requested as promptly as possible to execute an agreement substantially in the form designated as Exhibit "A" or Exhibit "B" to the said Plan, as the case may be, and to mail the same when duly executed to the Vice Chairman of the Association of Railway Executives at Washington, D. C.; and that when the said Vice Chairman has received a

sufficient number of the said agreements to indicate that three-fourths of the mileage of the roads now belonging to the American Railway Association, the Association of Railway Executives, the Bureau of Railway Economics, and the Railway Accounting Officers Association have assented to the said Plan, he shall promptly give notice to the Board of Directors and shall at the same time call a meeting of the said Board of Directors to complete the organization of the Association. At such meeting the said Board of Directors shall fix ≈ date upon which the Plan shall become effective. The present Association of Railway Executives, American Railway Association, Bureau of Railway Economics and Railway Accounting Officers Association shall continue in their present activities until the date so fixed by the Board of Directors, but upon said date the said four existing organizations, to wit, the Association of Railway Executives, the American Railway Association, the Bureau of Railway Economics and the Railway Accounting Officers Association, shall deliver to the Association of American Railroads all their funds, records, files, correspondence, and property of every kind, title to which shall by said delivery vest in the said Association of American Railroads, and thereafter the said four existing organizations shall cease to exist and shall be merged into the said Association of American Railroads.

BE IT FURTHER RESOLVED, That from and after the said date when the said Plan shall become effective, all contracts, agreements, and arrangements of whatever character to which the said Association of Railway Executives, the said American Railway Association, the said Bureau of Railway Economics, and the said Railway Accounting Officers Association are parties are hereby assigned and transferred to the Association of American Railroads, it being the purpose and intention of this Resolution to substitute the Association of American Railroads for the Association of Railway Executives, the American Railway Association, the Bureau of Railway Economics, and the Railway Accounting Officers Association in, and that the Association of American Railroads shall assume all agreements, contracts, and arrangements which have been entered into with road members of the four organizations herein merged and/or with any party or parties not members thereof.

BE IT FURTHER RESOLVED, That the Board of Directors of the Association of American Railroads be and the same is hereby authorized to enter into such agreements and arrangements as may be necessary to bring into the Association of American Railroads any other railroad organizations within the scope of the Plan as hereby adopted, upon such terms as may be fair and equitable, reporting their actions, if any, in this respect to the roads members of the Association of American Railroads.

Any railroad eligible for membership in the Association, not signifying its assent to the Plan by voting for this Resolution, may nevertheless become a member of the Association by signifying its assent to the Plan and executing and delivering to the Secretary-Treasurer of the Association an agreement substantially in the form designated as Exhibit “A” or Exhibit "B" to the said Plan, as the case may be.

APPENDIX NO. 2

Resolution adopted by Board of Directors, Association of American Railroads, October 12, 1934

WHEREAS, at a joint meeting of the Member Roads of the Association of Railway Executives and of the American Railway Association held in Chicago on September 21, 1934, a resolution was adopted approving the Plan of Organization of the Association of American Railroads; and

WHEREAS, the said Plan provides that it shall be effective upon a date to be fixed by the Board of Directors after three-fourths of the mileage of the railroads now belonging to the American Railway Association and the Association of Railway Executives shall signify their assent to the Plan; and

WHEREAS, the railroads belonging to the said two Associations have an aggregate mileage of 296,869.03 miles; and

WHEREAS, by resolution adopted at the said meeting by the roads members of the said two Associations it was provided that railroads assenting to the Plan should signify their assent by executing an agreement substantially in the form designated as Exhibit "A" or Exhibit "B" to the said Plan and mail the same to the Vice Chairman of the Association of Railway Executives; and

WHEREAS, the said Vice Chairman has certified to the Board of Directors that railroads having an aggregate mileage of 248,512.54 miles have filed with him their assents in the way provided by the said resolution; and

WHEREAS, it now appears that more than three-fourths of the mileage of the railroads belonging to the American Railway Association and the Association of Railway Executives have signified their assent to the Plan: Therefore, Be It RESOLVED, That the Plan is hereby declared to be effective and the Association of American Railroads declared to be in existence from and after the hour of 10 a. m., Friday, October 12, 1934, from and after which time the Association of Railway Executives, the American Railway Association, the Railway Accounting Officers Association, and the Bureau of Railway Economics shall cease to exist as independent organizations and shall be merged into the Association of American Railroads; provided, however, that the officers and employees of the American Railway Association, the Association of Railway Executives, the Bureau of Railway Economics, and the Railway Accounting Officers Association shall continue to discharge their existing functions and duties until otherwise directed by the chief executive of the Association of American Railroads; and provided further, that the Bureau of Railway Economics shall continue under that name as a bureau or division of the Association of American Railroads until the further orders of the said chief executive.

BE IT FURTHER RESOLVED, That from and after October 12, 1934, all the funds, records, files, correspondence, and property of every kind belonging to the Association of Railway Executives, the American Railway Association, the Bureau of Railway Economics, and the Railway Accounting Officers Association shall be delivered to, and title to which shall vest in, the Association of American Railroads.

EXHIBIT No. 393

STATEMENT OF W. R. TRIEM, GENERAL SUPERINTENDENT OF TELEGRAPH OF THE 'ENNSYLVANIA RAILROAD CO., BEFORE THE SUBCOMMITTEE ON WAR MOBILIZATION, COMMITTEE ON MILITARY AFFAIRS OF THE SENATE OF THE UNITED STATES

(Filed with the committee, June 1, 1944)

INTRODUCTION

The Pennsylvania Railroad appreciates the opportunity of being heard by the Subcommittee on War Mobilization and of submitting to it, necessarily in partial form, a résumé of its policies and performance, as a representative American railroad, in the utilization of technological progress and in helping to originate and encourage such progress. It is understood that the purpose of this inquiry is to bring out and examine the facts of the situation, with a view to facilitating the further advancement of the transportation art in the public interest. We therefore consider it a privilege to join in that effort and contribute to the extent of our ability toward making the results of this inquiry as informative and constructive as possible.

The high faith expressed by the chairman of this committee during his opening remarks on February 10, in the essential character of the railroads, and his appreciation of their basic importance and of the outstanding part which they have played in the growth of our country, inspire us with confidence. We believe that the testimony already given and that which remains to be presented will leave in the record of these hearings the portrayal of an industry that has been consistently eager and alert in promoting, adopting and putting into practical use the discoveries and advances in science and engineering which have proved applicable in its field, either to refine the quality of the service or increase the efficiency of operation.

RESTRAINT ON RAILROADS

It must be borne in mind the railroads have not always been free to go ahead as rapidly or on as broad a front as they would desire. We are the most highly regulated industry in the country-indeed, in the opinion of many competent judges, even to the extent of being overregulated, though that implies no question as to the good faith or sincere motives of those who exercise the regulative powers.

We are confronted with subsidized competition which we are forced to help support with taxes. We are ourselves heavily taxed and receive no special benefit for our industry from the taxes which it pays.

We have suffered perhaps more severely than any other branch of enterprise from the effects of the great depression which prevailed from 1930 to the outbreak of the present war. This has been so because, in addition to the direct losses from the general economic prostration, which we sustained in common with all industries, we were faced with new and steadily increasing competition much of which, as I have just indicated, has been encouraged and aided by subsidies from the public funds.

Finally, it is a matter of general knowledge that, since the outbreak of the war, our programs of equipment improvement and other betterments have been retarded and in some instances suspended for the duration through causes wholly beyond our control.

IMPROVEMENT PROGRAMS

Nevertheless, up to the beginning of the war and the imposition of restrictions on the use of critical materials, these programs had been under way on scales of unprecedented extent. In fact, during all those discouraging depression years which preceded the war, the railroads-and in this respect my own road, the Pennsylvania, was highly typical-were engaged in the most important and farreaching betterment programs of their entire history. In consequence, they

entered the war with the full advantage of this impetus and on the crest of a great tide of progress which had been sweeping forward for years. No better general evidence of this could be offered than the railroads' own record of performance during the war as part of the Nation's indispensable war machinery. No industry has made a more vitally essential contribution to the war effort than the railroads, and they stand alone in having been able to perform their war service without numerous and costly additions to their plants and facilities, such as, in many instances, the Government financed for other industries.

Had the railroad plant, as a whole, not been a highly developed, thoroughly coordinated, efficiently working Nation-wide transportation system at the outset of the war, it would not have been possible to make this record. Indeed, we should have had a disastrous break-down of transport in this country, with resulting chaos in mobilization and production, and we and our allies might be this very moment in the throes of defeat.

PRESENT STATUS OF RAILROAD TRANSPORTATION

Transportation by rail is so smoothly performed, so quietly accomplished, so accepted every day by the American public as a matter of course, that the only time when the public attention is attracted to it is when something goes wrong. The railroads have been able to go through the war, performing the great added responsibilities which have been laid upon them, and still continuing to give general service to the American public.

These services have been gratefully and gracefully accepted by the public, with little or no opposition, and with a great deal of most sincere and helpful appreciation. The only exceptions, and they have been few in number, have been voiced in, or traced their origin to, the National Capitol, and while they were apparently intended to promote personal ambitions, rather than transportation progress or the public welfare, they have been overwhelmingly rejected by the country and have reacted adversely upon their authors.

EXPERIENCE OF WITNESS

Before proceeding further, I feel that I should present, for the information of the committee, a brief outline of my work and experience on the Pennsylvania Railroad. I should prefer not to bring myself personally into the picture at all; but on the other hand, I believe it will be helpful to the purposes of this inquiry if the committee is satisfied that whatever I may say of a factual nature is derived from first-hand knowledge, and that any opinions I may express are based on almost 40 years of practical railroad work in a variety of fields. To establish that, something of my own background seems necessary.

Immediately after my graduation from Ohio State University, with the degree of civil engineer, I entered the Pennsylvania's service and have since had no other employer. Starting in the engineer corps, my duties have covered engineering, maintenance, and construction, followed by active operating experience as assistant trainmaster, trainmaster, and superintendent on a number of divisions, then as superintendent of freight transportation of our railroad's central region, and since 1936, as general superintendent of telegraph. In this last-named capacity, my duties extend over the entire system.

The position of general superintendent of telegraph is an old one on the Pennsylvania Railroad, and many changes and additions have been made in its duties and responsibilities since its original establishment. As might be deduced from the name, these duties cover supervision over all means of wire communication, including not only the Morse telegraph, which is now of much less importance than formerly in railroading, but also our exceedingly large telephone network, our very extensive teletypewriter system, as well as facsimile equipment, train telephone, and any other means of instantaneous communication that may be used or considered. In addition to responsibility for the operation of these communication systems, the duties of general superintendent of telegraph also involve the development and issuance of specifications to cover all materials used and all practices employed in the installation and maintenance of all communication appliances.

Another function of the post includes the chairmanship of the Pennsylvania system train rules committee, which consists of a selected group of practical operating officers. As head of this committee, I am responsible for the operating, signal, and interlocking rules relative to all matters affecting train operation. My work is also closely associated with that of the signal department, requiring continuous familiarity with signaling and all ramifications in its development affecting train movements. I am also required to have complete familiarity with such matters as train dispatching, block operations, and the movement of trains on the road. These are the objects of constant study, and a never-ending search for ways and means to facilitate the ultimate purpose for which the railroad exists, that is, the prompt, regular, and safe movement of trains to carry freight and passengers.

In the Association of American Railroads, I have, for the last 8 years, been chairman of the operating rules committee, and am also a member of the committee of direction of the telephone and telegraph section. In these capacities I have had not only the opportunity but the obligation of becoming familiar with conditions, facilities, and practices on the railroads of the United States generally, particularly as to communication systems and methods, train-operating rules, and signaling rules and equipment.

The membership of the operating rules committee is selected on a group basis in such a manner as to give representation to railroads in all parts of the United States and Canada. The committee's principal work is the preparation, revision, and interpretation of the Standard Code of Rules for train operations and block signals and interlockings. This Standard Code is undergoing constant study and revision to meet changing conditions and requirements, and is the bible of all operating men on all railroads, with respect to any questions as to operating, signal, and interlocking rules and methods.

PROGRESS IN RAILROAD TECHNOLOGY ON THE PENNSYLVANIA RAILROAD

In accordance with the practice of your subcommittee I have submitted in advance a prepared statement for insertion into the record of these hearings. Included in this statement is an appendix containing answers relating to Pennsylvania Railroad operations, to the questionnaire submitted by the subcommittee to the Association of American Railroads. These answers apply specifically to operations of the Pennsylvania Railroad and should prove helpful to the subcommittee in disclosing the extent progress has been advanced in railroad technology on a typical railroad.

The Pennsylvania Railroad serves the eastern seaboard from New York in Washington, and all of that agricultural and industrial area which lies between the Ohio River and the Great Lakes and west to Chicago and St. Louis. It is commonly considered as representing about one-tenth of the railroad industry. Traversing the eastern seaboard, crossing the Allegheny Mountains, winding through the foothills of Ohio and Indiana and touching the prairies of western Indiana and Illinois the railroad property has of necessity been designed to meet practically as many different conditions as may be found on all the railroads of the continent combined. Harbor installations at Atlantic and Great Lakes ports for handling foreign and domestic commerce, including coal, ore, grain, and manufactured products: freight and passenger stations; huge yards and terminals; fruit and vegetable markets; warehouses: grain elevators; coal mines; industries; all have been linked together by this railroad system to afford a transportation service unequaled in magnitude and efficiency.