New-York tribune., 1919-06-03
New BillOpens
Way to Return
OF Railroads
Powers of Interstate Com.
merce Commission Are
Vastly Augmented as a
Substitute for u. S. Rule
Pooling Is Made Legal
Fixing and Revision of
Rates Provided For; Cost
of Service Made Factor
Nem York. Trihun,

New York Tribune
Washington Bureau
WASHINGTON, June 2.-Repre-
sentative John ]. Esch, Of Wisconsin,
chairman Of the House Commerce
Committee, introduced to-day his bill
amending the interstate commerce act,
which is designed to pave the way for
the return of the railways to their
owning companies.
In general it may be said that the
bill seeks to give the Interstate Com
merce Commission additional powers,
to secure the advantages of unified
control without impairing private own
ership. 1t is believed to represent the
views Of the majority of the com
mission. Its general tendency may
be described as evolutionary rather
than revolutionary, as it seeks gen
orally desired ends by opening the
way toward them under the present
general system of private ownership
and operation, with Federal super
vision
The bill does not refer directly to
the return of the railways, apparently
assuming that the President will at
tend to returning them, and concerns
itself only with endowing the Inter
state Commerce Commission with au-
thorlty to meet the situation.
Notable Points of Bill
Some of the outstanding features of
the Esch bill are:
There is no provision for Federal
incorporation or creation of regional
systems under Federal direction, but
the door is opened for permissive
consultations of existing systems
with the consent of the Interstate
Commerce Commission
There is no guarantee of fixed
return, but the principle of cost of
service is to be taken into account
in fixing rates.
The interstate rates fixed under
the present Federal operation are
to remain in effect when the rail
way companies resume CONTROL sub
ject to modification from time to
time by the commission under the
law as amended.
The powers of the commission are
greatly extended, one of the ex-
tensions enabling it to relieve the
carriers in large measure of "con-
ficting restrictions imposed by the
state authorities"
Telephone and telegraph systems,
as to interstate business, are brought
more fully under control of the
commission than in the past
The following is summary pre-
pared by Representative Esch of the
principal purposes Of the bill:
First - The development of inlan1
water transportation:
"Section 1 of the interstate commerce
act is made to apply to transportation
OF passengers or property by railroad
or by water, or partly by railroad ano
partly by water, and the term watea
includes the lakes, rivers, canals anc
other inland waterways within or bor
dering on the United States, the ter
ritory of Alaska, the Panama Canal anc
all waters within and without the three
mile limit from the coast of the United
States or the territory of Alaska trav
ersed by vessels permitted to engage il
the coastwise trade of the United
States.
"Thc prohibition imposed by the Pan
ANA Canal act upon railroad owned
vessels is modified so as to permit sucl
vessels to continue in service, ever
when competition may be excluded, pre-
vented or reduced, if the commission
finds such service in the interest o.
the public.
"The commission can order track:
and docks of carriers to be connected
and suitable docks to be constructed
by either the rail or water carrier. ane
determine the sum to be paid by either
Such docks shall be considered as ter
minals, and the terms and condition:
upon which such docks and connecting
tracks shall be operated shall be pre-
scribed by the commission
Weak Lines Protected
"The commission is authorized te
fix the division Of rates between car
riers Under the exercise of this power
1T will be possible for weak lines, or so.
called independent short lines, to re.
ceive such share of the joint rate as
will enable them to live. Their con
stant complaint has been that al
though they originated the freight
they receive but small fraction OF
the joint rate. The commission under
the bill may prescribe the just and
reasonable division'
"The period of suspension of sched
ules of rates is shortened A common
complaint against delay in suspension
cases was due to the fact that ,er
months was allowed under the act
The bill allows not moro than 12O days
If tho hearing is not then concluded
the proposed change shall go into
effect, but the carrier must keen ar
accurate account in detail of all sums
received by reason of the increase
asked for, and, should such increase
finally be disallowed, a refund of the
excess found not justified by the ccm
mission must be made to the proper
parties.