The Washington times., 1920-02-18
RAIL RATES TO
STAND6MONTHS
Conferees Provide Against Re-
duction Immediately After
Return of Roads.

No reduction in rates can be made
for six months after the railroads OF
the country are returned to private
ownership. according to the terms OF
the combined Senate and House rail-
road bill agreed upon by the conferees.
The conference report on the two
measures, which 10 to be submitted
to the House today, provides that the
guaranteed standard rental allowed
the railroads under Federal control
shall be continued six months after
the return of the lines on March l.
and that during this period the rates
now in effect will apply. Both inter-
state and intrastate rates are In
cIuded, the provisions being inserted
to prevent State commissions from
lowering rates within their jurisdic-
ton and causing additional losses for
the Government because OF the guar
antee.
See InereaseA Rates.
Democrats. opposing this and other
guarantee sections OF the bill, claim
that rates will not remain at the pres
emit level, but will be increased In the
near future because of these provi-
slons. Efforts will be made by Con-
gressmen Sims and Barkley, the
Democratic conferees, to defeat the
conference report for this reason.
Action on the conference report VIII
not be started in the House until sat
urday Efforts will be made to reach
an agreement on that day. thus al
lowing the Senate next week to act
in order that the measure may be
sent to the President before March l.
A summary of the important pro-
visions Of the conference report fol-
lows:
A new rule OF rate-making Is es-
tablished with the provision that the
Interstate Commerce Commission
must adjust rates SO that the roads
will be guaranteed a return OF 5h
per cent on their aggregate property
value. Any profits above per cent
are to be DIVIDED equally between the
carriers earning 1t, and a Government
contingent fund to aid the weaker
roads.
Labor Disputes.
Labor disputes are to be settled
through adjustment boards. with an
equal number of representatives Of
both sides, with the right of appeal
to a new permanent tribunal created
by the bill, the Railway Board of La
Dor Appeals. upon which the public,
carriers and labor are represented.
All arbitration is voluntary and no
anti-strike provisions are included.
revolving fund Of $500, 900, 900 is
created for loans to the roads.
All indebtedness during Federal
control Is to be funded over a period
not to exceed fifteen years.
State railroad commissions have no
powers over any rates until six
months after control ends.
All war powers of the President
with regard to railroads are repealed.
Greater 1. c. G. Powers.
Much greater powers are granted
the Interstate Comerce Commission,
including the right to regulate car
movements, to remove car shortages,
to order the joint use Of terminals,
the pooling of equipment, and many
other features found beneficial under
governmental control. The commits
sion virtually has power to relieve
and meet any emergency in transpor-
tation conditions.
Stock and bond issues must be APP
proved by the commission to prevent
wrecking Of roads.
No line can be extended or aban.
doned without the commissioners con
sent. .