Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1920-03-02
WILSON, SIGNS BILE
RETURNING ROADS To
PRIVATE OWNERSHIP
Director Hines Says Both
Public and Owners Have
Been Benefited by Period
of Government Control

WASHINGTON, Feb. 2s.-Presi-
dent Wilson signed the railroad bill
Saturday night, on the eve OF the
return of the roads to their owners
and to private operation. =
| In . proclamation issued at the
| time the bill was signed, Mi. Wilson
vested in Walker D. Hines, director
general of railroads, virtually+ all
| powers conferred upon the executive
! by the bill. Mr.. Hines will also con
tinue to exercise the duties OF direc-.
tor general which continues beyond
| the return of the roads to private
control at midnight tomorrow night
The White House also made pub,
lio the text of the presidents reply
to d recent request Of representa-
tives of the railroad brotherhoods
| that he appoint q commission COM
posed equally of employers and en3-
ployes' delegates to consider wage
! demands made by the brotherhoods.
1t deals wholly with the wage de-
mand settlement proposals and does
not refer directly to the memorial
| later presented by the brotherhood
heads, asking that lre veto the rail-
| road bill.
Announcement Of the signing OF
the bill came after officials had be-
come convinced Mr.. Wilson did not
| intend to act Saturday, although they
| were certain he would not permit
! the measure to become. law by the
! expiration Of the ten-day limit al
! lowed for presidential approval or
! veto of an act of congress. There
We're indications the presidents ac-
! ton on the bill was delayed pending
his completion of his reply to the
brotherhood heads.
President Wilson signed The act
/ after he had carefully investigated
! it's provisions, and obtained the cx-
! pert opinions of Attorney General
| Palmer and Rail Director Hines as
to it's constitutionality and work
ability. In signing 1t, he opposed
the railroad unions and farm or
! CARNATIONS associated with the
Farmers National Council, which re-
| quested him to veto it on the ground
| that it would result in delaying ae.
! ton on wage demands, in higher
railroad rates, and consequent lia-
crease in living costs. Other groups
of farmers, however, urged him 80
sign it. I
Al 2.11s a. ms. the government
handed over to their owners 100000
! miles of main line railroad and ter
mina1s and equipment, valued at APP
proxilnately $4,000, 900, 600, over
which it's direct authority has beer
extended since December IS. 1917.
! The properties were returned, leav-
| ing the government with a deficit OF
| $715,500,000 for it's twenty-six
months OF operation. But while the
| deficit appeared large, federal. op-
era ton has cost the public consid-
| erab1y less under the conditions
| through rates and taxes, than would
have been the case under private
control" Director General Hines de-
| clared in resume OF government
| management.
WASHINGTON, March 1--Pail-
roads of the country, operating for
the first time in twenty-six months
| under their own management, were
formally notified today by the inter
state commerce commission of the
Tne-7 powers delegated to that body
and CT the rights and privileges ac-
corded the carriers by the new rail
road law.
The commissions announcement
explained that provisions OF the law
against rate reductions prior to Sel,-
TENDER l without the commission S
approval were mandatory, but that
changes in rate regulations, classI-
fications and practices in which a
decision had been entered blythe
the date designated. All changes in
rates and classifcations effective
prior to today will stand, the state
ment said.
The United States railroad admin,
istration, the governmental agency
which for more than two years has
controlled the operation OF the ma;
tons railroad systems, today -wenl
out Of existence. With it's passing. II
midnight the 230 lines that Were
merged into what was practically
one gigantic system again came NJ
der control OF private interests, free
to operate in competition as Of old.
The transfer from government 70
private control was without incident
and there was nothing to indicate
to the trameling public that there
has been a change.
Hines Alone Remains
Of the staff of directors and e3ecu-.
tives who controlled the roads during
government operation Director Cen
eraI Hines alone remains. He viii
have no authority in directing the
opera ton OF the systems and remains
simply to clear up matters left pend
ing when the government relinquish-
ed control. These include thousands
of claims, contracts and grievances
vet to be settled and among which
are eighty three compensation con-
tracts with various roads which still
are the subject of negotiations
Under the so-called railroad re-
Organization bill. which governed the
return Of the transportation SYSTEM
to private ownership, but little jurla.
diction is retained by the govern
ment Under its terms the inter
state commerce commission is given
greater power to control rates and
compulsory arbitration of labor dis
putes is required. The government
also retains a certain amount of con-
troll over their bond issues, but al
the same time insureS a fixed per-
centage of profit and makes it pos
sible for the corporations to secure
loans from federal fund set aside
for that purpose.
Specifically, the bill authorizes the
president to settle all questions, in
Guiding compensation, and appro
PIRATES 100000, 900 for this purpose.
Provides Standard Return
Provides guarantee of standard
return" to carriers for a period Of !.
six months after the termination of
federal control.
Creates a revolving fund" of $780,
100000 for making new loans to car
riers.
Creates a railroad labor board and
other machinery for the anlicabls
settlement of disputes between en-
ployers and employees.