The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-12-31
ALL RAILROADS
TO Be RETURNED
Express Lines Also to Be Turn
ed Back-Big Problem
Confronts System
RAILROADS READY
FOR THE TRANSFER
In Two Years of Control, Gov
eminent Encounters Deficit of
Near $646,O00,000

/ Washington, Dec. 24.-President
Wilson tonight issued proclamation
returning the railroads and express
| companies to private control March
! J.,
Failure OF congress to enact RENE
dial legislation was given as the reas-
ON 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.
"No agreement having yet been
reached by congress" Secretary Tu-
multy said in announcing the proc
lamation, 1T becomes necessary in the
public interest to allow reasonable
time to 'elapse between the issuing
of the proclamation and the date Of
it's actually taking effect. The Pres
ident advised that the railroad and
express companies are not organized
to make it possible for them to re-
ceive aEd raanage their properties II
actually turned over to them on De-
ee,nber a.
The Esch- -Cummins bill designed to
meet conditions incident to the return
Of the roads; now is in conference.
I,asrnuch as the staffs Of the vari-
Gus systems have been retained Tirtu-
ally intact by the railroad adninistra-
ton, the .sretnrn Of tho railroads to
private control will involve legal and
financial rather than operating ques'
tons. Thes.. departme ents Of the rail-
road administration will remain in seN-
istence with increased personnel for.
months; after the operating ofncers
have left the, government service,
Swagar .Sherley, former chairman Of
tho. House appropriation committee
and pew; director of finance for the
r..i3rt.al administration, probably viii
be til, naal chosen to wind, up the
governments business in railroading.
Even bigger problems confront the
express companies. Consolidated INTO
one system under government oper-
alton. the four original corporations
are reported to have asked the de-
partment of Justice if there would be
any violation of the Sherman anti
trust law in their remaining unit
In two years of physical possession
Of the railroads, the government has
encountered deficit Of approx
raately ss4s,ooo.oo according to es-
Inmates submitted by Mr.. Sherley to
Senator Cummins. When the roads
were taken over January l, 1918,
Congress guaranteed them rental
of, 5000, 900. .0G0 annually, based on the
average income of thrce-year test
period. Operating revenues in 1918.
fell s236.0Oo, 600 below the standard
return and this year will be about
s250,00O,o00 under that amount. The
remainder of the deficit has been in
CURED in expenses of administration,
inland waterways. etc.
Two appropriations have been made
by congress, one Of s500.000, 600 and
the other of 's50.000,o00. much OF
which has been used as revolving
fund by railroad corporations and for
purchase Of new equipment. These
amounts Will be repaid to the gov
ernnlent.
After the Presidents proclamation
was announced Director General
Hines made public a message to all
officers and employees Of the railroad
administration thanking them for
their cooperating in the past and be-
speaking their best efforts in the re-
remaining period of federal control
Leaders in congress expressed ap-
nroval of the presidents action in
postponing return Of the railroads
II think the president has done the
right thing said Senator Cummins.
of Iowa, chairman Of the Senate IN
terstate commerce committee, and
chairman Of the subcommittee which
fromed the legislation known as the
Cummins bill 1T would haze been
very unfortunate if the roads had been
! turned back before necessary legis-
lation was enacted. Legislation to
| meet conditions in connection with
the reversion Of the properties un-
doubtedly will be sent to the president
within the next month. 1t may be
possible to complete the legislation
before the end of January.
Philadelphia, Dec. 24.-Thomas De-
Witt Cuyler. director Of the Penn
! c,.I,,,,,io Railroad and chairman OF