The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-11-13
FINAL DECISION ON
REORGANIZATION IS
DEFERRED BY HOUSE
Refund Plan Opponents De-
clare 1t Would Call for
Appropriation of Half
Billion by End Year

Washington, November 12-Sharp OPP
position developed late today in the
House to the proposal embodied in the
! railroad reorganization bill for the re-
funding to the government of $775,551,
600. owed by the carriers Attack on
the plan. led by Representative Deni-
son, republican, Illinois, and supported
by letter from Director Hines of the
railroad administration. resulted in
final decision being deferred
Opponents of the refunding plan de-
clared it would compel Congress to ap-
propriate SS63,355,000 by by the end of
this year to square the accounts of the
railroad administration, and Mr.. Deni-
son proposed a substitute plan, which
he said would decrease the amount
needed to s171 100000.
Under the Denison plan it is proposed
that $4,000, 600 owed by the govern
ment to the carriers as standard return
be set off against the debts due to the
government by the roads The pending
Eseh bill calls for only a partial i'm
mediate set-off. Proponents of the COM
mittee plan. which was understood to
have been written into the measure
after a bitter fight in the Interstate
commerce committee. urged that pro-
posal as a square deal to the railroads,
which were charged with debts, con-
tracted without their consent during
the period of government operation.
Director General Hines. in his letter
addressed to Chairman Esch of the in
terstate commerce committee, described
the bills plan as an 'unduly liberal pol
icy" He asserted that the plan would
provide working capital not needed by
strong roads, while those most in need
of financial aid would not receive it,
The carriers, he also asserted, would
not be encouraged to finance their needs
from private sources. The director gen
eral added that Congress should def
initely fix the interest rate to be
charged against the funded indebted
ness. pointing out that the bill might
grant rates so low as to be unjust
to the government, and suggested that
the interest rate be fixed at 6 per cent
SEVERAL SECTIONS APPROVED
Before becoming tied up with COM
sideration of the refunding plans. the
House approved several sections of the
bill, including that directing surrender
of the lines by the government at the
end of the month in which the bill is
passed and that placing the operation
of boat and barge lines, established by
the railroad administration on the Mis-
sissippi and Black Warrior rivers, I'M
der the war department engineers. BY
a vote of Sc to % it also rejected the
proposal of Representative Madden, re-
publican, Illinois to repeal the Presi-
dents authority to take over the rail-
roads in time of war.
General debate. which ended before
the beginning of consideration of
amendments, centered largely on the
labor provision for voluntary arbitra-
ton of disputes. Representative Wins
low, republican, Massachusetts, defend
ing the principles of the bill, declared
that public opinion would force settle
ment of any dispute eff capital and la
Dor would sit down and rub noses as
directed~by the bill
Representative Huddleston, democrat,
Alabama. attacked the bill as a whole,
declaring it was vicious class legisla-
ton" and that the labor provisions for
damages collected on violation of wage
contracts would enable the railroads to
get part of the unions property"
Representative Rayburn, democrat,
Texas, announced he would propose an
amendment intended to penalize, walk
ing delegates" of the unions, whom he
accused of provoking most labor trou-
bles and Representative Blanton, dem
ocrat, Texas, urged adoption of
straight-out anti-strike legislation.