The Challis messenger. (Challis, Idaho) 1912-current, 1919-12-31
RAILWAY CONTROL
TO END MARCH |
PRESIDENT FIXES DArE FOR
RETURN OF RAILROADS AND
q EXPRESS TO OWNERS.
Estimated That In Two Years Of Pos
session Of the Railroads Of the
Country, the Government Has
Lost s6t6, ooo, 900.

Washington.-On December "a a
proclamation was issued by President
Wilson, returning the railroads and
express companies to private control
March 1.
Failure of congress to enact RENE
dial legislation was given as the rea-
son for extending by two months the
time originally announced for relin.
gushing government 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.
mo agreement having yet been
reached by congress" Secretary Tu-
multy said in announcing the procla.
nation, ut became necessary In the
public interest to allow reasonable
time to elapse between the issuing Of
the proclamation and the date of its
actually taking effect The president
Is advised that the railroad and ex-
press companies are not organized to
make 1t possible for them to receive
and manage their properties il actually
turned over to them on December 81"
The Esch-C ummins bill, designed to
meet conditions incident to the return
Of the roads, now Is In conference,
with the prospect that an agreement
on differences between the house and
senate will be threshed out before
March 1.
Inasmuch as the stats Of the va
riOus systems have been retained vir-
tually intact by the railroad admin
istration, the return OF the railroads
to private control will involve legal
and financial rather than operating
questions.
Those departments Of the railroad
administration will remain in exist.
ence with increased personnel for
months after the operating officers
have left the government service.
Swager Sherley, former chairman of
the house appropriations committee
and now director of finance for the
railroad administration, probably will
be the man chosen to wind up the
governments business in railroading.
Even bigger problems confront the
express companies. Consolidated into
one system under government opera
ton the four original corporations are
reported to have asked the department
of justice If there would be any VIC
lation of the Sherman antitrust law
In their remaining a unit.
In two years OF physical possession
of the railroads the government has
encountered deficit of approximately
SG46, 100000 according to estimates
submitted by Mr.. Sherley to Senator
Cummins. When the roads were taken
over January 1, 1918, congress guar-
nnteed them rental of 100000, 600
annually, based on the average income
of a three-year test period. Operating
revenues in 1913 fell 1896, 100000 be-
low the standard return and this year
will be about $3.50, 100000 under that
amount. The remainder of the def
cit has been incurred In expenses Of
administration, inland waterways, etc
Two appropriations have been made
by congress, one Of S5O0OOO,OOO and
the other Of $75O,OOO,OOO much of
which has been used as revolving
fund by the railroad corporation and
for the purchase Of new equipment
These amounts will be repaid to the
I, government.