The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-09-02
RAIL MEASURE
GIVEN SENATE
PROv|DESF FOR
LINES RETURN
Bill Submitted After Months
Of Work-Returns Roads
Under Strict Government
Control.
PLUMB PLAN IGNORED
(By Associated Press)

ownership and operation of railroads
in number of regional systems under
strict government control, with
strikes and lockouts of railroad en-
ployes prohibited, is the plan for per
manent railroad legislation submitted
to the Senate today by the Interstate
commerce subcommittee.
a tentative bill embodying the sub
committees recommendations which
bear no resemblance to the Plumb
plan had been introduced by Chairman
Cummins and referred to the full in
terstate commerce committee The
bill Is the result Of many months OF
hearings and work by the sub-commit-
tee which, Decides Mr.. Cummins, in
cluded Senators Kellogg, of Minnesota
and Poindexter, of Washington, Re
publicans and Pomerene of Ohio and
Robinson, OF Arkansas, Democrats
Provisions Of Bill.
Salient prvisions of the Cummins
bill include:
Termination Of government control
and return of the railroads to private
ownership on the last day Of the
month Of enactment.
Establishing the Interstate Com
merce commission, with greatly IN
creased powers, as the supreme body
over railroad affairs.
|
ly all railroad affairs, including rates,
wages, operation and financing, by the
government
Creation Of new railway trans
portation board Of five members ap-
pointed by the President to supervise
railway development and operations,
subject to final action of the Interstate
Commerce.
Creation of new committee Of
wages and working conditions, COM
posed equally Of representatives OF
employees and employees, with wide au-
thority in settling labor questions.
subject to decision of the transporta-
ton board and Interstate Commerce
Commission.
Prohibiting strikes and lockouts of
railroad employees under fine and i'm
prison penalties.
Provides New Policy.
Providing a new policy for cencen-
tration in ownership Of railroads, with
federal Incorporation. into not less
than So regional systems.
The new method for settling labor
disputes is a proposed committee of
wages and working conditions. Sen
ator Cummins said, adding:
TT creates a committee OF wages
and working conditions, which is to
be composed of eight members, four
representing labor and four represent
ing the railway companies.
Another clause would create,
through the new nsportation board
an employees advisory council, CON-
posed of representatives of each or
ganized craft Of railroad employees"
to use one-half Of excess earnings of
companies, above their fair divi-
dends, for the benefit Of employees as
follows:
Research to lessen hazards Of en-
ployment, extension of hospital relief,
insurance and pensions, technical ed
. ucation for employees and to establish
a profit snoring system for employees.
The other half of excess earnings
should be used by the transportation
board to buy equipment for lease to
the companies or for equipment loans.
| Upon passage Of the Act the bill
provides that the Interstate Commerce
commission shall divide the country
into rate-making districts, hold re-
gional hearings and fix new rates with
regard to public and shippers inter
ests, wages of labor, cost of mainte-
nance. and operation and "a fair re-
! turn upon the value of property
!, to be fixed by physical valuations of
the commission-and to lower or raise
rates in conformity.
SIS Regional Systems.
The transportation board would es-
tablish the policy of establishing 90
to 35 regional railway systems. under
federal incorporation for distinct OPP
Grafton under competitive conditions.
Street and interurban railways prin-
cipally used for passenger traffic
would be exempted from such consoG-
dations which would have to be ap-
proved by the Interstate Commerce
commission. The boards powers
would include general supervision OF
operating and financing of railroads,
including extensions, administration
of the car service and safety appli-
ance laws. diversion of traffic, pool
, ing OF equipment, joint use of termi-
: nails and other matters.
The bill provides for regulation OF
= railroad stock and bond issues by the
: Interstate Commerce commission and
for increased rate making powers
. Government control of new lines or
, extensions would be required.
: The subcommittee bill, Senator
y Cummins told the senate in his expla-
, nation, is an alternative for govern
ment ownership.
Unless we have something similar
. to the committees plan put into i'm
, mediate effect, he said, government
. ownership of the railroads will be only
/. a question of time"
, The proposed concentration of rail-
!, roads into regional systems by rein
corporation based upon actual physi-
cal valuation, Senator Cummins de-
clared. appeared to be in response at
this time to the demand for sconsoli-
dation. The bills plan, he said, will
q retain competition among the car
J. riers, remove and prevent over capi-
v talization and also provide adequate.