The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-12-26
WILSON RETURNS
CARRIERS MARCH
1; ISSUES EDICT
Period of Government Control Of
Carriers to End Within
Seventy Days
OWNERS ARE SATISFIED
Will Reimburse Nation For Cost
of Equipment During
the War
OWNERS ARE SATISFIED

| Washington, Dec. 2C. - President
Wilson on Wednesday night issued
proclamation returning the railroads
and express companies to private
control March 1.
Failure of congress to enact rem
edlal legislation was given as the rca-
son for extending by two months the
time originally announced for relin-
gushing governments control of the
railroad properties. In his message To
congress last May President Wilson
said the roads would be turned back
at the end Of the calendar year.
| The -Cummins bill designed
10 meet conditions incident to the re-
turn or the roads now is in confer
ence. with the prospect that an agree
mant on differences between the house
and senate will be thrcshed out before
March ]. While one provision OF the
bill would order the return of the
roads at the end Of the calendar
month in which the bill was approved,
1t was considered hardly likely that
an agreement would be reached
quickly enough to put the roads back
February L. or one month earlier than
ordered by the president There arc
indications Of Il lively fight before
either house adopts the others posi-
ton on anu-strike clauses Of the bill,
or the question of continuing the gov
ernmcnt guarantee to the roads until
they can obtain increased rates to
meet advanced operating costs. Also,
1t was said tonight in congressional
quarters that because of the presi-
dents decision no attompt would be
made to rush through the necessary
} legislation
. Return Docs Not Hamper Operation
; "lnasmuch as the staffs of the var
ious systems have been retained vir-
tually intact by the railroad admin
is traitor the return of the railroads to
private control will involve legal and
/ financial rather than operating ques-
: tions. Those departments of the
I railroad administration will remain in
existence with increased personnel
y for a month after the operation Off
, GERS have left the government services
Z Swagar Sher1ev.. former chairman OF
1 the house appropriations committee
] and now director. Of finance for the
. railroad administration, probably will
S be the man to wind up the govern
mont's business.
a Busy programs face the express
f companies. Consolidated into one
| system under government operation
Y the four corporations are reported to
) have asked the department of justice
e il there would be any violation OF the
r Sherman anti-trust law in their re-
:. naming a unit.
!, In two years Of physical possession
y Of the railroads. the government has
encountered a deficit Of approximately
n $64G 100000, according to estimates
r submitted by Mr.. Shcrlcy to Senator
Cummins. When the roads were taken
over January l, 1918. congress guar
anteed them rental of $900,OO0,OOO
annually. based on the average in
come Of a thrce-ycar test period Op-
Grating revenues in 1913 fall s23G ,000,-
600 below the standard return and
this year will be about $3.50 1000, 900
: under that amount The remainder
$ of the deficit has been incurred in
6 expenses OF administration, inland
- waterways. etc.
Il. RS viii Repay Cost Of Equipment
t Two appropriations have been
2 made by congress of $500,000,000 and
5 the other of $750,O0O,00O much OF
a which has been used as revolving
n fund by the railroad corporations and
J. for the purchase OF new equipment.
r These amounts will be repaid to the
! government.
r After the presidents proclamation
was announced, director general
: Hines made public a message to all
n officers and directors of the railroad
& administration, thanking them for
It their cooperation in the past and be-
a speaking their best efforts in the re-
IL manning period Of federal control.
l. In announcing these two decisions
e Of the president. Secretary Tumulty
t. issued the following statement:
e Last May in his message to The
congress tho president announced
q that the railroads would be handed
st over to their owners ut the end ol
IS this calendar year. 1t is>0ow ncces
n sary to act by issuing the proclama
= tion. III the present circumstances
II no agreement having yet been reach
ed by the two houses Of congress ii
respect to legislation on the subject
it becomes necessary in the public
!, interest to allow reasonable time
III 10 elapsc between the issuing OF tn.
proclamation and the date Of its aG
l. tual taking effect.
st "Thc president is advised that TIL
n railroads and express companies ar,
n not organized TO make it possible fo
a. them to receive and manage thei
e properties if actually turned over. I,
u them on December 81 and ii this Wer,
done it would raise financial aud le
TO gal complications OF a serious char
10 acter.
81 "fhe railroads and express com
M panies should be given ample oppor
N tunity to adequately prepare for tn
q resumption of their business unde
ls the control and management. OF thei
own stockholders. directors and off
asf GERS. Therefore, the transfer Of pos
:, session back to the railroad com
i. panics will become effective at 1870
.,n., March 1, 1920"