The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1919-11-20
ESCH RAIL BILL IS
PASSED BY HOUSE
Extends Governmental Guaranty
for Six Months, 203 to 1853.
LABOR CLAUSE STAYS IN ACT
Passage of Measure Is Made a Party
Issue by the Democrats - Will
Carry It Into the Next Ma
tionaI Campaign.

1lSHal NaHlPalSls
Washington, Nov. 1S.--On virtually
party vote of 2O3 to $50. the huose
passed and sent to the senate the EsCh
railroad reorganization bill. Final ac-
ton came after six days of continuous
debate
The Democrats made the passage of
the measure a party issue rs Il protest
against the section which continues
the guaranteed operating income of
the railroads for six months after the
termination of federal control 1t was
openly declared by the Democratic
leaders that this issue will be carried
into the national campaign of 1920.
\ motion by Representative Sims of
Tennessee 10 recommt the bill with
instructions to strike out the guaranty
sections was defeated by Il vote of 2O3
to 100.
The measure goes to the senate, hut
it will not be taken up there until the
regular session in December.
Labor Forces Show Power.
An effort was made without success
TO cause the house to reverse the ac-
tion of the committee of the whole in
rejecting the arbitration plan of the
original Esch bill and substitute for it
the Anderson-Sweet scheme approved
by organized labor. The labor forces
again showed their supremacy, the
amendment being approved by a vote
Of 253 to 112
The bill as passed provides for the
return of the roads to their owners,
extends the governmental guaranty for
six months after the return authorizes
the railroads to borrow funds from the
government extends present rates I'M
changed by the proper authorities and
broadens the authority of the inter
state commerce commission in many
respects, including control over the
issuance Of securities
xiii Set Rules Of Rate Making.
Substantially all amendments made
in committee Of the whole were APP
proved by the house.
BY Il vote of l15 to ~ the house in
committee Of the whole eliminated the
section containing a proposed rule Of
rate making. This action was taken on
the motion of Representative Burklcy
of Kentucky, a Democratic member of
the committee on interstate and for
eign commerce, and with the support
of IL 1 ftrn nd %
the other members of the committee.
1t was opposed to Representative Deni-
son of Illinois. Sanders of Indiana, and
Merritt Of Connecticut, also members
of the committee.
Before being stricken out the see
ton was amended by the addition Of
the words "among other things" in
connection with the propositions emu
merated 10 which considerations should
be given in fixing rates. This was in
tended to overcome the objection that
otherwise the commission might be
limited to particular things mentioned.
Guard Against Watered Stock.
Especial objection was made to the
provision for "a fair return upon the
value of the property" on the theory
that this seemed to imply the recogni-
tion of validity Of watered stock Those
favoring the rule of rate making in
sisted it was necessary I'm order to eS-
tablsh the credit of the railroads.
~ believe we have been sufficiently
liberal to the railroads" said Repre-
sentative Barkley 1--WE have given
them a six months guaranty under
the terms under which the government
has suffered loss Of more than $500
100000 a year for the last two years.
We have continued the present rates.
We have authorized them to borrow
money from the government think
we have gone far enough without
guaranteeing them return on their
property"
Fat Salaries Not Barred.
An amendment by Representative
Sims of Tennessee that in consider
ing rates the commission should not
allow to be charged against operating
expenses salaries Of railroad officials IN
excess Of 100000 was rejected in com
mittec Of the whole Mr. Sims said
there are % officials Of the Pennsyl-
vanla railroad drawing salaries of more
than $4,000. including the president
of the road at $4,000 and II vice pres
idents with salaries from $25,0OO to
$40. 600.