The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-03-01
IT, RAILROAD
CONTROL ENDS
Administrative System Of Past
Two Years Passes Out +
of Existence.
SMOOTH.

Washington, March 1.-(A. P.)
The United States railroad ad-
ninistrdtton, the governmental
agency which for more than two
years has controlled the opera
tion of the nations railroad sys-
tens, today went out Of exist
ence. With it's PASSING at mid
night the 23o lines that were
merged into what was practically
one gigantic system again came
under control of private inter-
ests, free to operate in competi-
tion as Of old. The transfer from
government to private control
was wife7gt incident and there
was no Cd to indicate to the
traveliF Eablie that there had
been 1ee.
or the : IF of directors and ex-
ecutivesi & controlled the roads
during = government control Di-
rector-q : al Hines remains. He
will hai ) o authority in directing
the ope Z. : IN of the systems and re-
mains j. ly 10 clear mp matters left
pendin = hen the government relin-
quishe : ltrol. These include thou
sands laims, contractS. and griev-
ances to be settled, aud among
which are eighty three compensation
contracts with various roads which
still are the subject OF negotiations
Little jurisdiction.
Under the so~called railroad reor-
ganization bill which governed the
return of the transportation systems
to private ownership, but little iuris-
dintion is retained by the government.
Under its terms the interstate COM
merce commission is given greater
power to control rates and compul-
sorry arbitration of labor disputes Is
required. The government also re-
tains a certain amount of control over
their bond issues, but at the same
time insures a fixed percentage Of
profit and makes IL possible for the
corporations TO secure loans from a
federal fund set aside for that pur-
pose.
Specifically, the bllf authorizes the
president TO settle all questions, in
cluding compensation, and appro-
PIRATES S200000,00 Tor this purpose.
Provides guarantee Of STANDARD re-
turn" to carriers for n period of six
months after the termination of fed
eral control.
Creates a railroad labor board and
other frmachinery for the amicable set.
tlement OF disputes between employees
and employers. F
Directs the Interstate commerce
commission to fix rates that win pro-
vide for two years 1-2 per cent. re-
turns on the value of the aggregate
railway. property DEVOTED. q. The p9lbs
NJ 4AAs - leasss sssass ~ q 4sesa@sa
AS to Excess EarnInos
Provides that if any carrier earns
in any year net operating income
In excess of per cent, one-half of
such excess must be placed i'm n re-
serve fund and the other half must
be paid into Il general contingent
fund, To be used to make loans TO
carricI
Gives TO the interstate commerce
commission the power to regulate the
issue of railroad securities,
Increases the interstate commerce
commission from nine to eleven mem
berJ and their salaries from $4,000
to $4,000.
Whether union labor leaders, who
stubbornly opposed the measure in
congress and later sought to have
President Wilson veto 1t, will test the
constitutionality of the bill in the
courts will be decided here today at
the conference of executives of the
railway brotherhoods. The confer
ence was arranged TO consider the
presidents reply to their formally
presented objections to the bill.
GoMPERS WON'T TRY AGAIN.
Miami, Fla, March mo further
action will be taken by the American
Federation of Labor in regard to the
railroad bill signed by the president
over the protest of organized labor,
Samuel Gompers, president Of the
federation, said today
What is the use?" said Mr. Com
pers, when asked IL the federation
would petition congress and the
president for a change OF attitude
THE federation was much opposed
TO the railroad bin as drafted, and ]
can speak for them all when / say
that the action Of the president ts to
be regretted"
E0IID H0MCIDCDCN