New-York tribune., 1919-10-23
Fight Against Measure by
Labor Unions Expected
by Interstate Commerce
Committees Chairman
Ban on Strikes Opposed
Return of Roads to Owners
and Creation of 25 to
3o Competitors Proposed
Nc,r York Tribune
Wnsbir atom Bureau

NcN York Tribune
Washington Buredu
WASHINGTON, Oct. 22-The bill
drafted by the Senate Interstate Com
merce Committee returning the rail-
roads Of the country to private owner
shin and regu ating their operation by
creating twenty to thirty-five competi-
tive systems, under Federal supervision
and control, and prohibiting strikes OF
the railroad employees, will te reported
to the Senate tomorrow.
The 5lll would reorganize the rail-
re ads of the country and coordinate al:
rail end water transportation systems
1t will be acted upon as soon as the
peace treaty is disposed of, Senator
Cummins, chairman of the committee,
said to-day He does not look for Its
eariy passage, however, as there Will be
a bitter fight waged in Congress by or
ganized labor against the drastic anti
strike provisions Of the bill.
Senator Cummins, in statement to-
night, said of the bill:
s.The aim is nothing less than to or
Ranize into one gigantic unity,
under effective Federal control. all the
instrumentalities of river, csnal, rail-
and ocean transportation. and TO SUD-
thority.
S1.2GO. 900 900 In Advances
"The bill repeals the act Of March FL,
1917 except as to the provisions Tor
settling up the problems involved IN
Federal control. The government is to
carry for a period not exceeding ten
years the Indebtedness of the railroads
TO it on account of money advanced,
chargeable to capt.. account. That is,
advances by the government to the COM
panies during the period of Federal con-
troll. which were expended in additions
and betterments. will not be required to
be repaid Immediately, but the govern
ment will take evidences of and securi-
ties for the companies Indebtedness to
it. Advances of this charcter amount to
about 200,0O0,000. The figure may
prove less, but the accounts are not
nearly up to date and only approxima-
ton is now possible.
"From this amount owed by the COM
panies to the government, will be de-
Quoted amounts which the government
owes to the railways for services rem
dered. In addition to these amounts,
certain other advances made by the
government, amounting to probably
about $500 900 900, will be carried by the
government or demand notes of the COM
panies at 6 per cent. These last men
toned advances represent expenses that
would have been paid from current in
come if the income had been sufficient.
To Return Working Capital
"Also, the bill provides for return
OF the working capital that was taken
over with the roads. 1t is not yet pos
sible to state what the amount is, but
the bill states that the amount to be
Ill
case exceed the cost of operation of q
road for a month The committees in
formation is that the aggregate of
these amounts will be about $500 ,000,-
600
The bill provid IS for the return of
the roads to their proprietary COM
panies at midnight of the last day of
the month in Which the bill shall be-
come law 1t undertakes to reorganize
the regulation system SO as to elimi-
nate the difficulties of the old system
of railroad control. Under that sys-
tenn different roads had widely vary
ing earning capaciay A road with a
large earning power, in competition
with another having a small earning
power, might earn Is per cent on its
investment, while the poorer road, on
exactl the same schedule Of rates
would earn perhaps 3 or or l per
that the old regulatory plan was q
failure because of the discrepancies in
the earn'r~ cacacity.
Careful Inquiry Proposed
"Accordingv the bill provides that
the roads snail be distributed in rot
less than twenty nor more than thirty
FIVE systems. This distribution shall
be made after careful inquiry in
which the companies. investors, the
states, business interests, and every
other interest concerned will be en-
titled to hearings. The plan will pre-
serve competition in service, which the
committee has been convinced is very
necessary. Thus, between New Yorl
and Chicago it is expected there will bs
four or five competing systems, pre-
serving the Incentive to TIE best posi-
bic service. The committee is con
WINGED that unihcation in single sys
tenn >nder private ownership is i'm
practicable, while unifcation undel
public ownership was rejected at th'
outset, not more than one member O
the committee favoring IT.
THE foregoing states the underlyin,
principle of the legislation. To accom-
piish il in operation, the bill provides
Tor the creation of railway transpor
tation board of five members appointed
by the President, at S12 900 per an
mum. This board shall immediately OF
organization take up the question o
organizing the roads in systems. Whe,
the project is completed the scheme O
system organization must be submittet