The Washington herald., 1920-03-01
TRAINS RUN ON |
SCHEDULES AS|
ROADSGOBACH
Transfer Of 240, 900 Mile
OF Steel Highways Causes
No interruption.
|. c. c. READY TO ACT
Body Prepares to ConsideI
Applications for New In
creases in Rates.
i. c. C.. READY TO ACT

At 1901 o'clock this morning thd
railroads of the United States, with
over s1,aoo,Qoo.O 900 of the govern
ment's money invested in them.
went back to their original 2.eed
managers without any formaiity
whatever, concluding the biggcstI
experiment in government opera
tion and control ever attempted.
The roads are valued at between
5000. 100000 and SEQ, 600, 900, cool
and cover 100000 miles. The gov-
ernment has paid in rentals $780,
10000 a year and still faces al
deficit of $7I5,Oo0, 900.
During the twenty-six months of
government operation the railroads
have been kept in excellent condi-
ton, with the exception that the
normal amount of new equipme Mt
and rolling stock has not been pur-
chased, but Director General HinesI
declared that war conditions pre-
vented this.
Public Unconscious OF Change.
The travelling public was conscious
of no change as the transfer becarae]
effective. 1T just naturally hap
pencils said Director Hines, who.
slept soundly during the transfer.
At few minutes after midnight
the telegraph wires began to hum
with messages from chief to chief
directing the transfer of control
Practically all the men who man
aged the roads under government
control were on the job. Schedules
remained the same. The joint oper-
alton of ticket offices will go on in
most cities the same as il mo- change
had been made. at least fora while
In one sense the change Is en4
tireIy a matter of bookkeeping, This
morning tAa.r a.rentire~-Sorce Of ths
Railroad administrator is at work
on the books while the owners of
the roads are tackling the gigantic
task of remanagins their proper
ties.
Largest Turnover In History.
The transfer. which is termed
the largest industrial turnover in
history, will require the attention
of the Railroad Administration for
an indefinite period, but Director
Hines expects that the most I'M
portant details of the change will
be completed shortly after May 1.
The Offices of the Railroad Admin
istration here will continue their
work as well as throughout the
country as long as is necessary. but
with only a skeleton force.
Members of the Interstate Com
mcrcc Commission already have
been at work estimating the
amount of the huge freight and
passenger rate increases which will
be necessary to bring in sufficient
revenue to guarantee ~ per cent
return. 1t is probable that the
President will increase the person.
mel of the commission to cope with
the problem OF rate increases. 1t ia
estimated that an increase in
freight rates of 20 per cent Will be
necessary and that slight in
crease in passenger rates will also
be necessary.
brotherhood Leaders Meet.
Coincident with the transfer of
the railroads the executives of all
the big railroad brotherhoods met
here last night to frame a reply
| to the proposal of the President TO
lay their demands for increased
| wages before the hoard of media
tion which shortly is to be appoints
ed. The brotherhoods, representing
more than 100000 employees. have
made a bitter fight against the bill.
charging that it favored the rail-
roads against the interests of the
| employees and the public.
| The President suggested that the
brotherhood chiefs take advantage
of the provisions of the bill TO gain
the increases they have been de-
manding since last spring. His pro-
posal was that the unions agree to
cooperate with the railroad man
ayers in the organization of a joint
CONTINUED ON PAGE THREE.