Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-12-25
President Wilson in
Proclamation
Sets Date.
GIVES CONGRESS
TIME FOR ACTION
Allows Corporations
Period to Prepare,
1t Also Is Stated.

q A4S0 40 k~Ge&&~Ae
Railroads and express companies TAX, 90.
over by the government soon after the
country entered the var and operated
by the United States Railroad Admins .
tration for almost two years will be
returned to private ownership March J.
q proclamation fixing that date having
been issued by President Wilson last
night through the Secretary of War.
Indications are that Congress VIII
adopt necessary legislation before the
government gives up the roads, the
Esch-CUmmins bill dealing with this
problem now being in conference. Sen;-
/ tor Cummirs. republican, chairman Of
me Senate interstate commerce com
! rnittee, said he Thought the President
had done the right thing" in extending
the date for Ire return of the road two
months longer than that originally fixed.
; Statement by Mr.. Tumulty.
! A statement given out by Secretary
! Tumulty at the same time the proc
lamation was made public said:
Last May in his message to the
| Congress the President announced
/ that the railroads would he handed
! over to their owners at the end OF
this calendar year. 1t is now neces-
sary to act by issuing the proclama-
D
no agreement having yet been reached
! by the two houses of Congress in re
Spect to legislation on the subject, it
! becomes necessary in the public inter-
est to allow reasonable time to
! elapse between the issuing OF the
| proclamation and the date of its
actually taking effect.
The President is advised that the
railroads and express companies are
not organized to make it possible for
\ ~
properties if actually turned over to
! them on December 81 and if this were
done it would raise financial and
! legal complications of a serious char
acter.
THE railroads and express companies
/ should be given ample opportunity 10
, adequately prepare for the assumptions
+ of their business under the control ana
management of their own stockholders.
directors and officers. Therefore, the
road companies will become effective at
L. :01 am. March i, 1870.
Debate Anti-Strike Clause.
The principal difference in the Senate
! and House measures is the Senate'S pro-
+ vision for a strict anti-strike clause
/ A lively fight would precede the adoIp-
/ ton of such legislation by the House.
and it's defeat there is predicted b.
many in case the conference report con-
tains the Senate measure. The Senate
would not prevent the men from quit
/ ting work. but would punish any con
/ spiracy'' to hamper the movement OF
/ trains. There is also some difference
between the two houses over the que.s-
: ton of continuing the guarantee to tie
! roads until rates have been readjustea.
/ InaSmuch as the stats of the W.
rious systems have been retained viz
! tually intact by the railroad admin
istration the return of the railroads
' IN ri1 a will involve LEGAL
and financial rather than operating
. questions. Swagar Sherley, former
! chairman of the House appropriations
committee and now director of finance
for the railroad administration, prob
! ably will be the man chosen to wind
up the governments business in rail-
reading.
| Even bigger problems confront the
! express companies. Consolidated into
| one system under government opera
, ton. the four original corporations
are reported to have asked the De-
! partment of Justice il there would be
any violation of the Sherman anti
trust law in their remaining n unit.
Encounters Huge Deficit.
! In two years OF physical possession
| of the railroads, the government has
| encountered deficit of approximately
! S646, 900, 600, according to estimates
/ submitted by Mr.. Sherley to Senator
/ Cummins When the roads were taken
! over January I. 1918, Congress guar
anteed them rental of s3oo,000,0oo
! annually, based on the average income
Of three-year test period. Operat-
| ing revenues in 1918 fell s236,000.0co
! below the standard return and this
year will be about S250,o0o.0o0 under
| that amount. The remainder of the
deficit has been incurred in expenses
Of administration, inland waterways,
etc.
Two appropriations have been made
by Congress, one of $500, and
the other of s7on.o00,ooe, much OF
which has beer used as a revolving
fund by the railroad corporations ana
for the purchase of new equipment
These amounts will be repaid 70 TIL
government
Hines Thanks Ofy1cials.
After the Presidents proclamation
was announced. Director General
Hines made public a message to ali
officers and directors Of the railroad
administration, thanking them for
their cooperation in the past and be-
speaking their best efforts in the re-
naming period of federal control.
Presidents Action Meets