New-York tribune., 1920-02-05

Agree ON Rail
Return Bill
Measure Calls for Conn
petitive Private Opera
ton With Guaranteed
Earnings of 5 1-2 p. C..
NctD York Tribnne
Washington bureau

! n Il
NctD York Tribune
Washington bureau
WASHINGTON. Feb. 4.-Legislation
for the return of the railroads to pri-
vate ownership and operation on March
l. when the period Of Federal opera
ton will end, was agreed upon to- day
The conferrecs of the Senate and
House who have been meeting daily
for a month in an effort to compose
the differences between the Esch bill
passed by the House and the Cummins
bill, passed by the Senate. concluded
their work, and will report the confer
ence committees bill TO the two houses
OF Congress within four or five days
The measure will be given the righ
of way in both houses. the conferrccs
declared
Present Rates to Stand
brlefy, the conference committee S
Dill provides for competitive private
operation of the roads. under control
of the Interstate Commerce Commits
SION, with guaranteed earning on
actual property values Of 5l2 per cent
ana with present rates standing for a
dchnlte period. after which the COM
MISSION is given power to revise them.
voluntary instead of compulsorv con
Soildation of the roads into competitive
systems is provided for.
revolving fund of $500 600 900 is
appropriated to aid the roads during
the period of transition. The confer.eq
also provided for the rafundinp of thc
roads Indebtedness to the Federal GOV
crnment during period of ten wears
The drastic anti-stril,e provisions
of the Cummins bill were eliminated
and in their place (, clause was adoptcd
creating regional wage and labor ed
Justment boards, with "A central board
to be named by the Pres dent and ap-
proved by the Senate having the final
decision. No penalty is provided for
failure to abide by the decisions of
the labor boards
The Senate was forced TO Weld on
many important points in the Gummin;
bill and to consent to numerous modi-
hcations of its origin<l program. Sen
ator Cummins. however. did not yield
on the much disputed Section s, which
provides for a fixed guaranteed opcr-
ating income to the railroads during
the transition period following Federal
operation.
REIMBURSEMENT Period Fixed
Section remains virtually as adopt
ed by the Senate. Provisi N is made
for readjustment Of frcight and pas
senger rates by groups on such basis
as Will guarantee to the roads in each
rate making group an annual guarau-
teed net operating income Of 5l2 per
cent on the value of the actual prop
erty used or held for the transporta
ton service. The period during which
bn
carriers by the Federal government az
rental shall continue was changed from
one year to six months.
The first rate revision necessary tc
maintain the 3 y per cent return is tC
| take place either one year after the
! expiration Of the guaranteed compen-
saton now being paid or two years af-
ter the passage of the bill. The con
ferees have yet to agree on this point
While the ntistrike provision was
erased, the conferccs did not elimi-
nate all labor clauses, as had been
forecast in some quarters. The bill
sets up series of regional adjustment
boards and central tribunal to which
all appeals will go. Whenever the re-
gional boards are dead1ocked the dis
putes will go to the appeal board au-
tomatically and when there is an
agreement the decisions as to wage in
creases will have to be approved by the
central tribunal. The regional boards
Will be COMPOSED of representatives
Of the employers and the classified
workers. The appeal board will be an
official Federal commission selected by
the President and approved by the
Senate. 1t probably will be composed
of five members. This detail has not
been worked out
No Enforcement Provision Made
The boards will have power to inves-
tigate and to render decisions on con-
troverses relating to wages and work
ing conditions, but the bill will carry
10 penal provisions for enforcement OF
the decisions.
The transportation board, an ad
ministratve body, erected by the Sen
ate bill, was knocked out. and the
House plan to have the Interstate Com
merce Commission permit consolida-
tions of railroads was approved. These
changes we're announced several days
ago.
A prov sion of Importance to the rail
road executives, especially in view of
the controversy between Judge Robert
S. Lovett of the Union Pacific and
Daniel Willard, of the Baltimore &
| Ohio, relates to the disposition of the
surplus earnings of carriers under the
51- per cent guaranteed operating in
! come. The Senate bill provided orig
inally for a shifting ratio '-of division
of the excess earnings between the car
rler and the government. the latters
I.ortion to be held as a trust fund for
aiding weaker roads not earning 5 !.
Fer cent under the rate adjustments
AS agreed upon by the conferees there
is to be straight-out half-and-half di-
vision between the earning carrier and
the government. u
The conferees agreed upon $30O,OOO,-
600 as the amount of the revolvin Z
fund with which the government will
aid the carriers during the transitory
period. TIE Senate bill provided for