Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1920-03-01
new Powers
OUTLINED BY
Commission
Commerce Body Acts as
Railroads Go Back to
Their Owners.


OF the country. operating for the
first time in 26 months under
their own management, were form
ally notified today By the interstate
commerce commission of the new
powers delegated to that body and
Of the rights and privileges ac-
corded the carriers by the new rail-
road law.
The commissions announcement
explained that the provisions nf
the law against rate reductions
prior to Sept. /, without the COM
missions approval, were man
datory, but that changes In rate
regulations, classifications and
practices in which a decision hal
been entered by the commission.
would be effective on the date
designated. All changes in rates
and classifcations effective prior
to today will stand, the statement
said.
Public Sees No Changes.
Washington, March 1.-The oper
ating division of the United States
railroad administration, the gov
ernmental agency which for more
than two years has controlled the
operation Of the nations railroad
systems, today passed out of ex-
istence. With its passing at mid
night, the 230 lines that had been
merged into practically one gigan-
tic system again went under con-
troll Of private interests, free to
operate in competition as OF old.
The transfer from government 20
private control was without Incl
dent and there was nothing TO inS-
dicate to the travelling public that
there had been 3 change.
Hines Still on Job.
OF the staff of directors and ex-
ecutives who controlled the roads
during government operation Di-
rector General Hines alone re-
mains. He will have no authority
in directing the operation of the
systems and remains simply to
clear up matters left pending when
the government relinquished con-
troll. These include thousands Of
claims, contracts and grievances
yet to be settled, among which are
So compensation contracts with
| various roads which still are the
negotiation.
Under the so-called railroad re-
| organization bill which governed
the return of the transportation
systems to private ownership. but
little jurisdiction is retained by the
government. Under its terms the
interstate commerce commission is
given greater power to control
rates and compulsory arbitration
| Of labor disputes is required. The
government also retains certain
amount of control over their bond
issues, but insures a fixed percent
age Of profit and makes it possible
! for the corporations to secure loans
from the federal fund set aside for
that purpose.
Some of the Provisions.
Specifically, the bill authorizes
the president to settle all questions,
including compensation, and ap-
propriates 5000, 700, 900 for this put-
| pose.
| Provides guarantee Of stand
ard return" to carriers for a perioi
OF six months after the termination
Of federal control.
Creates a revolving fund" of
! 5000, 100000 for making new loans
to carriers.
( Creates q railroad labor board
and other machinery for the amic-
able settlement Of disputes be-
tween employers and employees.
Directs the interstate commerce.
commission to fix rates that will
provide for two years, 5La per cert
returns to the railroads on the
value Of the aggregate railroad
property devoted to the public use.
Provides thai If any carrier earns
in any year a net operating income
in excess OF per cent, one-half OF
such excess must be placed in a
reserve fund and the other half
must be paid into general COR
tingent fund, to be used to make
loans to carriers.
Gives to the interstate commerce
commission the power to regulate
, the issue Of railroad securities.
Increases the interstate commits
sion, from nine to eleven members
and their salaries from $4,000 to
$4,000.
May Test Law.
Whether union labor leaders.
who stubbornly opposed tho meas
ures in congress will test the coz
stitutionaIity OF the bill in the