Evening star., 1920-02-18
R. R. BILL RETAINS
WARTIME: WAGES
TILL SEPTEMBER |.

! continue IN euoct until september l.
under the railroad reorganization bill.
, the conference report on which was
presented today in the House and
| Senate.
+. Under the wage provision. the re-
| drafting of which created more sur
prise in Congress than any other change
made in compromising the Esch bid of
the House and the Cumnlins bill of the
= Senate, pay of railroad work rs would
! be stabitiZcd at the present Levels for
: six months after the rail properties are
returned to private control and oper-
alton. The bill. as reported today. also
seeks to stabilize. rates for the same
time. providing that prior to Septem
Der l no rates may be reduced uness
, approval Of the Interstate Commerce
/ Commission is obtained
Wage Restriction interests.
The restriction OH wage increases
! was looked upon with especial inter-
+ est by members Of Congress, railroad
otticIa Is ana union leaders in view o.
. The recent demands OF the more than
2.ivu.Uto railroad workers for an ad
Vance in pay. President Wilson, iii
supporting the contention thai; no in-
troases could be granted on the exc
uf return Of the railroads, told the
union leaders that their demands
would be considered by 4 comm ss!on
u DE created by law, if such Il pro-
vision was Included in the railroad
"ill. or to be appointed on his own
/ Initiative if no legal provision were
made
/ Chairman Esch of the House man
! ayers announced today that the con-
/ ference report would be taken up in
; the House Saturday. and Chairman
! cummins of the Senate managers eX
poets to call it up in the Senate a Il
later date. Despite the expected op
! position to the new wage action, re-
publican leaders of both the House and
Senate expressed belier that the con-
ference report would be adopted and
| the bill sent to the President with lit
tie change.
The outstanding points of the meas
ure as finally agreed upon are:
Compulsory submission of labor
disputes to permanent federal board
appointed by the President and COM
posed of nine members equally divid-
ed between the employees. employers
and the public. No provision is made
for enforcing the boards s decision.
Adjustment of rates by the Inter-
state Commerce Commission so as to
yield to carriers a return OF 51a per
cent upon the aggregate value of their
property, with another half of l per
cent for improvements.
Distribution of half the net railway
operating income in excess Of per
cent of the property value equally
between the carriers reserve fund
and the federal railroad contingent
fund which will be administered by
the commission for the assistance of
weaker roads
Government guarantee to railroads
against a deficit during the first six
months after the roads are turned
back.
Permissive consolidation of rail-
roads in accordance with a general
consolidation plan to be prepared by
the Interstate Commerce Commission.
$5OOyOOO. 900 =. Revolving Fund.
Appropriation of $500. 100000 to be
used as revolving funds from which
to make loans to carriers and pay
claims growing out of federal control.
Cnexpended funds now i'll the Railroad
Administrators hands are also reap
propriated for that purpose. and an ap-
preparation of $50.00 for the federal
labor board is provided.
AS finally agreed upon, the labor sec
tion provides that lit shall be the duty
of all carriers and their officers. en-
ployeS and agents, to exert every rea-
sonable effort and adopt every avail
able means to avoid any interruption
to the operation of any carrier grow
ing out of any dispute between the car
rier and the employees or subordinate
officials
Such dispute, the bill provides,
should. if possible, be decided by rail-
way boards of labor adjustment estab-
lished by agreement between the car
riers concerned and the employees. No
provision is provided. however, for
their organization.
The bill directs the railway board
of labor appeals. which would be ap-
pointed By the President with the
Senate's approval. and which would
have central offices in Chicago, to con-
s:der ard decide CASES either certified
which the latter failed to hear. In
addition the federal board can, upon
the appeal boards own motion. if it
is OF the opinion that the dispute is
llkeiy substantially to interrupt COM
merce." investigate conditions sur
rounding the dispute and make a de-
cision. Such decision, however. under
the bill must be concurred in by at
/, least five members. one of whom must
be Of the public group.
Provides 3 l.: Per Cent Yield.
The rate-ma'.ing section of the bi1l
. stipulated that the Interstate Com
inerce Commission in establishing
rates which shall yield return equal
10 , Y per cent of the aggregate value
OF the carriers property shall COVE
que consideration. among other things.
to the transportation needs of tie
country and the necessity (nnder
honest efficient and economical man.
agement of existing transportation
! iacilltles) of enlarging such facilities !
, in order to provide the people of the
United states with adequate trans
portation"
The section further provides that
curing the two years beginning
March l, 1920, the commission shall
take as Such falr return a sum equal
/ 10 ol2 PEI: centum Of such aggregate
value but may. in its discretion, add
thereto sum not exceeding one-half
/ or one per centum Of such aggregate
value to make provision in whole or
! IN part for improvements. better
nehtS or equipment. which according
! 70 the accounting system prescribed
capital account"
Determination of the aggregate VAL
! ue OF the property of the carrier for
/ rate making purposes is left to the
! commission with the provision that it
/ shall give to the property investment
! account OF the carriers only that con-
! sidcration which it is entitled to I'M
: der the Law in establishing values
/ for rate making purposes. When any
carrier receives for any year net
! railway operating income in excess
! of per cca. of the value Of it's prop
; erty, one-haf of such excess goes to
( the carriers reserve fund while the
! tinGent fund. which is to be used by
! the commission in making loans to
! railroads or for the purchase of
/ transportation equipment or facilities
and leasing the same to carriers
In order 20 enable the commission to
administer more efficiently federal
! regulation, the bill, as agreed upon,
, greatly widens it's powers and in4
creases the membership from nine to
, eleven commissioners, with an in
crease from $4,000 to $4,000 in an
Eual salary.
Increases Comm ission's Power.
Tho commissions increased powers