Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-11-18
BILL FOR PRIVATE
RAIL OWNE ERSHIP
PASSED BY HOUSE
sch Measure Gets By Lower
!, Branch of Congress- 203 to
sM59, But viii Not Come Up
aSN Nenate Until December

" =. ........,,
w mgton, Nov 1.-THE Esch
railroad bill, providing for private
ownership and operation Of rail car
! riers. under broad federal supervision,
was passed tonight h. the house. 20S
to l59. The measure goes to ths
senate but it will not be taken up
there until the regular session in De-
cember
A majority of the democrat mem-
bers opposed the bill, after their failure
to eliminate the provision for govern
ment guarantee of revenues of the
| carriers for the first six months OF
renewed private operation.
Representative Sims, Tennessee,
ranking democratic member of the
| house interstate commerce commit
tee, that framed the measure. led the
| fight on the guaranty, declaring 1t
! subsidy" A motion to eliminate it
was defeated, 200 to 1866 on substan-
| TALLY a political division.
The house re-affIrmed 253 to 1l2,
its stand on the labor section providing
only for the voluntary couciliation of
labor disputes. Representative Kitch-
in, North Carolina, former democratic
| leader. attacked the labor section as
leaving the same number of disputes
largely with the railway unions. He
declared "the brotherhoods could
nullify the provisions ten days after
passage of the bill by refusing to ap-
point representatives to the boards
created to settle controversies
l. G. c. Powers Enlarged.
Preceding the final show down"
by separate rolls. the house spent tho
day In consideration of numerous eN-
tension of the powers Of the Interstate
Commerce Commission. Its last act
was to place the commission in con-
troll of all capital issues of the roads.
after members had declared that II
similar provisions had been in tho
law some years ago none Of the dis
graceful financial disasters" would
have befallen several big systems.
The proposed new rule for rate
making was eliminated after a bitter
fight Efforts to prevent the Interstate
Commerce Commission from being
given authority to control intrastate
rates, imposing on undue burden" on
interstate commerce, were defeated.
BY this section the house enacted into
law the famous shreveport case"
after which intrastate rates in the
southwest generally were increased to
remove discrimination found to have
existed against Shreveport in favor of
| Dallas.
What the Bill Docs.
The railroad bill as passed by tho
house does this:
Provides capital and insures tho
| financial future OF the lines during tho
period Immediately after private oper-
alton is renewed, creates machinery
for the voluntary conciliatlon OF labor
| troubles: and extends federal author
ity over rail transportation by increas-
ing the powers Of the Interstate Com
merce Commission.
Federal control would end with tho
month in which the bill is enacted
and rates continued in effect for six
mouths unless changed. Roads are
ordered to ask the interstate COM
merce commission for general rate
advances within sixty days and gov
ernment guaranty is denied carriers
failing to do so.
As guaranty the government
agrees that the revenues of the car
riers for the first six months of re-
newed private operation shall equal
the standard return paid during fed
eral control as rental for the use OF
the lines. short line railroads and
express companies also would receive
this guaranty.
Government Five-year Loans.
Government five-year loans at
per cent also may be obtained by tho
line within twenty-six months after
the end of federal control and to
carry out the provision Of s25,000,00O
is made available.
The funding plan for settlement Of
s775,0O0,000 the roads will owe the
government at the end of this year,
provides for a set off Of approximately
$400, 600 900, the amount of govern
ment rental. Payment Of this unliqui-
dated Indebtedness would be in ten
annual installments,
For settlement of labor troubles, the
bill would set up machinery in vogue
before and during federal control for
employe and employer voluntarily
conducting negotiations. with an add
ed provision for a second or appeal
board to reach decisions II the former
fails. No penalty is provided against
strike or lockout, and on all boards
the workers and the rail owners
would have equal representation. The
bill would give the Interstate Com
merce Commission jurisdiction of use.
control, movement, distribution and
exchange of locomotives and cars, and
supply, movement and operation OF
trains, and extension or abandon
ment of rail lines,
Authority of Commission.
The authority of the commission
would be extended to prescribe mimi
mum as we'll as maximum rates, TO
order the division of joint rates. to
re-route shipments. and limit suspen-
sion of rate schedules.
The antitrust law may be set aside
by the commission to permit the con-
solldation of railroads. or to permit
them to pool earnings or equipment
To insure freight movement as di-
rected by a bill of lading, a road suf-
fering the loss must be paid as though
it had carried the shipment
The bill affects water carriers by
repeating part or the Panama canal
act so as to permit railroads, on APP
proval of the commission. to own and
operate boats on the Great Lakes
and Long Island Sound. and gives the
commission authority to order con-
nections being made between rail and
water lines.