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Mr. Coates, Chairman of the Committee, presented a report containing the applications of companies and individuals for membership, and on motion of Mr. Emmons, it was received, including the approval of the members presented for election.

On motion of Mr. Palmer, the Executive Committee expressed its high appreciation of the service rendered by Mr. Alberger in bringing in new company members on the Pacific Coast. The motion was seconded and carried.

In this connection, Mr. Budd expressed the view that the Association should place itself in a position to render such service and assistance to the industry that no company would feel that it could afford to be on the outside. This would probably involve a larger organization and headquarters staff for this purpose.

There was also some discussion of the activities of the Washington office and the service which it is performing for the interurban companies under the Transporation Act. The desirability of united action was emphasized in such cases. REPORT OF THE COMMITTEE ON NATIONAL RELATIONS

Mr. C. L. Henry, Chairman, presented a verbal report for the Committee. He reviewed the application of Section 15a of the Transportation Act to interurban companies, and the work which the Committee on National Relations had done in connection with this whole situation. He explained the exempting clauses in the Act relating first as to whether a company's lines are operated as part of a steam railway system, and second, whether they are engaged in the general transportation of freight. He further stated that the Interstate Commerce Commission had not made any interpretation of these provisions, and that they had refused to lay down any general rule in the matter, but that the situation for each company had so far been decided upon its own merits. He stated that a circular notice had been sent to all companies calling a conference on the subject of the inclusion or exclusion of companies under the Transportation Act, which would be held during the Convention, and recommended that a public hearing should be asked before the Commission, where the matter could be openly discussed.

There was a general discussion on the importance of getting all companies together and presenting a unified front before the Commission. Mr. W. V. Hill of the California Association explained the views of the Pacific Coast companies on this subject in which he stated that the Petaluma and Santa Rosa ilway Company had been included in Section 15a by a ruling of the Commission because yo per cent of their business was the transportation of freight.

Mr. Brady reviewed the reasons why some companies desired to be included under the Transportation Act, particularly where their earnings were less than 6 per cent, and where they hoped to secure permission to borrow from the revolving fund, also the possibility of their securing a higher return than permitted by State jurisdiction and possibly also in the hope of avoiding franchise limitations.

Mr. Sawyer brought up the question of the regulation of buses by the Interstate Commerce Commission in order to avoid irresponsible competition. He stated that he understood the Commission would not assume jurisdiction over buses without additional legislation.

Summarizing the previous discussion Mr. Sawyer moved that the President appoint a committee in connection with the Transportation Act and the committee be authorized to employ counsel and to take such action in behalf of the Association as they deemed wise. There was some discussion as to whether this referred to a special committee or should include the Committee on National Relations. Mr. Coates then offered the following amendment.

"If in the judgment of the Chairman of the National Relations Committee, the Committee desires additional assistance, that the Executive Committee empower the Chairman of the Committee on National Relations to draft into the service of the Cominittee such

additional members as he may deem wise.” This amendment was then seconded by Mr. Brady, put to a vote and carried. Mr. Coates then offered an additional amendment:

"And further, that the Chairman of the National Relations Committee appoint a sub-committee to actively go into this question at once, whether the present members of the committee or not, and that the Chairman of the National Relations Committee be Chair

man of this sub-committee.” This amendment was seconded by Mr. Sawyer, put to a vote and carried. The original motion as amended was then put to a vote and carried


MEMBERSHIP Mr. Schreiber, Chairman of the Committee made an appeal for interest on the part of the railway executives in the company section movement. He emphasized the importance of company section members over individual members, stating that while there were only about 800 of the former there were over 2,000 of the latter. He referred to the fact that one-third of the employes of his company in Camden were company section members, stating that they held frequent meetings and that it offered an opportunity for the officers of the company to come in close contact with their employes and for the employes to learn the company's business and problems. He asked that the officers of the Association seriously consider the desirability of establishing company sections on their own properties, stating that as this was an approved policy of the Association, it was incumbent upon them to set the example.

Mr. Budd warmly seconded Mr. Schreiber's request. He stated the company section offered one of the best means for establishing better

public relations and improving the education of employes. He referred
to the success of the company section in his own company, and how
his employes were being educated in the companies' financial and busi-
ness affairs.

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The Secretary stated that this Association was an exhibitor this year
and had been for a number of years, but had never paid dues as a
company member.

He stated that a number of its members were
members of the Association and that it operated without profit and for
this reason it had assumed that it might be allowed to continue without
the payment of dues. The Secretary explained, however, that the
Exhibit Committee had stipulated this year that every exhibitor must
be a company member, and he asked whether any exception should be
made in this case.

On motion of Mr. Coates, it was voted that this company be required
to pay the usual membership dues of $50.00.

The Secretary reported that Mr. Blair, Chairman of the Exhibit Com-
mittee had suggested that the exhibit might be held open on Tuesday
night, in view of the large number of requests from local people who
could not attend during the day.

On motion of Mr. Palmer, this recommendation was approved.

The Secretary also reported that approximately 62,000 square feet of space had been sold for the Exhibit.

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The Secretary presented two bills, together with letter of explana-
tion from Mr. Rice, President of the Claims Association, one for $95.00
and the other for $195.00, totalling $290.00 covering the printing of
bulletins by Mr. Rice during the year for the Claims Association's
work. It was explained that this was unusual since all such work
should be done through the Secretary's office and no request or appro-
priation had been made for it.

Mr. Sawyer moved that the payment of the bills be approved, but
that the suggestion be made that hereafter the approval of the Executive
Committee should be secured in advance rather than afterwards.
There being no further business the meeting adjourned.

Respectfully submitted,

Approved :

Executive Secretary.


PRESIDENT TODD :— The next business in order is the Report of the Executive Secretary.

REPORT OF EXECUTIVE SECRETARY To the American Electric Railway Association:

GENTLEMEN: Your Executive Secretary has prepared a record of the Association's activities for the year just closing which is set forth herewith and in a series of appendices.

Rather than to burden you now, however, with these statistical details I would prefer to take advantage of this exceptional opportunity to establish, if possible, a closer relationship between the headquarters office and the Association membership. This is your Association and its present and future are largely what you make it. Roughly speaking, its major activities number seven. These are: Committee Work; Publicity; Information Service; the Magazine "AERA”; the Washington Office; Co-operation with Other Associations; and the Annual Convention, Midyear Meeting and Exhibit.

Fundamentally, these are all agencies or arms of the Association which can be used for a furtherance of the Association's aims and the solution of the industry's problems. Every one of them is successful to the extent that it receives support and assistance from our membership

The Association is not omnipotent nor is it a separate being to be called upon to perform miracles or do anything else of itself alone. You are the "Association” and only to the degree that a sense of responsibility is felt individually by companies as members can the Association function successfully.

The Association is a voluntary organization, whose member companies continue or withdraw at will, a pure democracy in which each has identically the same voice in its affairs regardless of size, location or any other consideration. It must follow therefore that any company will get out of the Association just as much as it is willing to put in, and there is absolutely no limit to either.

Taking up briefly the seven agencies of the Association during the last year, the first is:

Committee Activity Early in the year the Committee on Policy made a report setting forth briefly the advantage to company members in having its representatives actively engaged in committee work. This report in fact was in answer to the suggestion that the Association might consider defraying the expenses of committee members in attendance at meetings. The report showed that on the basis of the previous year the expenses for railway and Pullman fares alone if paid by the Association would have been $40,000. On the other hand, the report set forth the advantages which a member company enjoys in having its representatives meet with those of other companies in the study of common problems; in the education of its representatives ; and in the opportunity for receiving at first hand new ideas and developments in the industry. In a specific instance, a member company saved $20,000 on a construction job by the timely information its representative received in committee work. During the last year over 500 committee men, representing 50 different committees, held approximately 100 meetings. Consider what an opportunity this offers for the interchange of ideas between companies; for the intensive study of problems in each branch of the industry; and for the adoption of unified methods and practices. The mistakes of one company need not be repeated by another, while all companies may profit by following the example where the results are successful. Executives of member companies are urged to take fuller advantage of committee work and to see that their representatives assume this responsibility seriously. I wish to set before you the ideal of “At least one committee representative from every railway company."

Publicity Work The publicity and advertising work of the Association for the last year and a half has been in charge of the Advertising Section of which Mr. Labert St. Clair is the Director. I include it here as its functions have been most closely interwoven with those of the other branches of the Association. Its work has been largely educational in bringing to all companies a realization of the necessity for establishing closer and better public relations and the specific methods of doing this. The value of this work to the Association's membership can hardly be over-estimated and is evidenced by the overwhelmingly favorable comment from companies throughout the industry. Its suc

this direction is indicated roughly by the fact that when its work started only 20 companies were doing advertising, while today an incomplete survey shows more than 200, representing one-half the mileage of the industry, are advertising and only 30 companies, representing 2/2 per cent of the mileage, are not. Our national publicity work has been financed heretofore by a separate campaign for funds under the direction of the Committee of One Hundred, whose report will be presented separately. An expenditure of approximately $25,000 per year is required and the present fund covering the last two years is about exhausted. Either this activity must be taken over by the Association or a new campaign for funds by the Committee of One Hundred must be made.


Bureau of Information and Service Last year the Association answered 10,353 requests for information from members of the Association. This phenomenal showing exceeds all previous records and is a concrete measure of the value of the Association to its members.

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