New-York tribune., 1919-11-18
House Passes
Rail Return
Bill, 203-159
Continued from paxe I

rAllrOadS.
The uniquidated Indebtedness of the
railroads. after the set-otf Of debts.
would, under the Dennison plan, be
paid in equal installments covering
period of ten years. The net result of
the plan, its proponents said, would be
to reduce from 1856. 100000 to SILL
100000 the amount that Congress will
have to appropriate to square accounts
between the railroad administration
and the carriers at the end of this
year.
Under the Dennison plan. adopted by
vote of l34 to sc, practically all the
money owed by the government to the
roads as standard return for rentals
would be set off against the carriers
capital account indebtedness of S775,-
7oI ,ouo to the government. and the re-
ma'nder would be secured by demand
lotes bearing per cent interest.
Refunding of Indebtedness
Elaborate provisions for refundiNg
the carriers Indebtedness to the United
-. States are made After the amount
States to the carriers arising out of
Federal control is cancelled any re-
naming Indebtedness Of the carrier
to the United States in respect to ad-
ditions and betterments shall, at the
request of the carrier be funded into
not exceeding ten equal parts. one of
such parts to be payable annually. be-
ginning at the expiration of five years
after the termination of Federal con-
trol. with interest at the rate of per
cent
shall continue in effect. Section 207
Of the bill provides that during the
SIN months following the termination
of Federal control the United States
guarantees to each railroad al any
time under Federal control that its
railway operating income FOR such
guarantee period whole shall not
be less than the average Of its railway
operating income for the three CORE
spending periods Of six months each
during the three years test period end
ing June 30. 1917
Limited Expenditures
In order 10 prevent excessive charges
20 operating expenses and for mainten-
ance of way and structures or mainten-
ance Of equipment during the guarantee
period. the section provides that the
amount Of such expenditures, for the
purposes OF the guarantee. shall be linn
ted h. the Interstate Commerce Com
mission N such manner as to corre-
spond as closely as may be TO the aver
age expenditures for such purpose dur
ing the test period.
In order that the carriers may have
sufficient sums to meet their fixed
c0arges and operating expenses during
the guaranty period the Secretary of
the Treasury, Cn certificate from the
Interstate Commerce Commission, may
make advances during The period OF
the guaranty on proper security being
given that If the amount of the ad-
vance exceeds the amount Of the guar
that neC tho tif
ference shall be paid 10 the United
states.
In order TO prevent the railroad
rom relying on the guaranty and max.
.ng no effort 10 increase its rates
until the guaranty period has expired,
the section provides that the guaranty
shall not be given to any road which
termination of Federal control, file
with the Interstate Commerce Com
mission schedules cmbodying general
Increases in its rates.
Express Contract to Continue
The existing contract of the Amer
can Express Company with the roads
= TO continue in effect.
A revolving fund Of $3.50. 900. 900 for
nc purpoea Of making loans to rail
roads during the wv years period fol
lowing the termination of Federal con-
troll is provided.
The railroad employees own machin-
cry for adjusting labor disputes with
the carriers was placed in the bill by
the House. The plan provides for vol
Nntary mediation and adjudication of
disputes. but in no manner affects the
right of the employees to strike.
Three national boards on which each
cf the railroad employees organiza-
Ions and the carriers will have equal
representation are created to mediate
md Conciiiatc disputes as at present
under the United States Railroad Ad
mInistration.
These boards, which viii represent
different classes ofsthe employees. will
he the last courts of appeal in "han-
ding and adjusting disputes affecting
the questions of wages, working con-
ditions. discipline and personal griev-
ances" of the employees. No power
ia given the boards to enforce their
awards.
Disputes To Be Referred
Disputes Will be referred to the
boards from local boards which are
created in the bill and to which the
disputes are first referred.
The bill provides that whenever q
ahor dispute occurs it is taken up by
the local board If the local board can
OF the company then it is taken before
a general board and presented before
nc general management of the rail
road company. In case the general
board cannot agree the dispute then
goes 10 the national boards, whose
headquarters will be in Washington
Title 4 of the bill relates to amend
ments to the commerce act The In
terstate Commerce Commi sson is en-
powered to enforce division Of Joint
rates for the protection of short lines"
A recurrence of what is known as the
assigned cars" evil is prevented by
the incorporation in the blu OF rule
AID down by the commission and up
held by the Supreme Court as to just
and reasonable distribution of coal
cars at the mines
Power Is Broadened
The power of the commission is
oroadened to shortage of equip
ment. congestion of traffic and other
emergencies. suspension of existing
rules for car service, and to make
other regulations in respect to the
handhng, movement and routing of
tfafhc, to the joint or common use of
terminals. to preference or priority in