Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-01-24
RAIL CONTROL
MAY CONTINUE
2 TO 5 YEARS
Congress Milling Round in
Circle Unable to Agree
on Provisions.
CHASM WIDENs DAILY

WASHINGTON, Jan. 24-The rail
roads may not be returned to their PR
vate owners March 1. Instead, there are
indications to encourage the growing be-
lief that they will continue under the
control of the United States government
from two to five years longer.
Deadlocked. apparently beyond hope Of
a compromise in time to enable, congress
to pass the fn2i legislation necessary to
turning the roads back to their owners,
senate and house conferees on the rail
road bill admit the outlook is far from
bright
Section 6 of the Cummins bill, provid-
ing for a per cent guaranteed earning
on the physical value OF the roads, and
the labor clause which makes it Il crime
for two or more persons to agree to
strike, are the main points IN dispute
Neither side will give in. Both Sena-
tor Cummins, republican, of Iowa, and
Representative Esch, republican, Of Wis
consin after whom the two railway bills
were named, and chairmen Of their re-
spective committees, admit the measures
have slipped into an impasse.
MEET DAILY AND
DAILY DISAGREE.
II is understood that the senate COM
mittee is willing to give ground on the
anti strike provision in the Cummins bill.
providing the house committee will sup
rort the clause guaranteeing fixed earn
ings to the railroads. But the house
committee has refused to accept this
compromise
The members of the two committees
meet daily to discuss this question OF
earnings and daily they separate without
having found a solution or anything ap-
preaching a solution The suggestion
that they ask for guidance" from their
associates consistently meets with re
fusaf
Opponents Of Sec insist they need no
guidance on the subject. their objec
tions being based upon matter Of prin
cip,e and not a misapprehension.
Unless a compromise Is reached, there
fore. within a short time It viii not be
possible for congress to take the steps
necessary FOR the return of the railroads
TO private ownership by darch l.
Strong pressure is being brought TO
bear on congress to get II to amend the
federal control act making it possible TO
retain the roads for at least two years
more and possibly longer Five years
has been suggested as maximum.
SAY 1T WOULD
BOOST HIGH COSTS.
This pressure is said to come from
committees and organizations In all parts
Of the country. the chief argument being
that the return Of the railroads a this
time would add 10 the already high cost
Of living Some of the members Of the
Interstate commerce commission express
the same opinion. and President Wilson
him nsaIf is said to-lBe not entirely averse
to the government retaining control OF
the roads at least until the present un-
rest is over, conditions are more settled
and better solution 10 the whole rail
way problem found.
According 10 member Of the inter
state commerce commission the rail
roads are prepared to apply for a gen
eral increase in freight rates Of at least
e5 per cent. BASED on 10lS freight re-
CENTS. the commissioner stated, a % pei
cent Increase would mean SS5,O000O0 ad
dltional which the shippers would have
to pay annually.
SAYS CONSUMER
CATCHES IT"
Robert ". Wooley. member Of the in
terstate commerce commission, talking
on this subject, said THE consumer
catches an increase In freight rates Gu
n ulatively. He Is bound to because h'
IS at the mercy Of the manufacturer
wholesaler aud retailer, and often The
commission men, MS to each single ma
terial that enters into finished article
/ then as to the article itself. Director
General Hines OF the railroads ha:
stated that the ratio was nve-fold II
/ ba
Increased S20O0OO0OO the consumer
would pay to the extent Of 81 500,O0000O
An Increase of 1876, 10000 in freight rates
would mean the consumer would hav'
to pay S4,375,000,000.
This would have an immediate effec
! Of increasing the living cost of familie
Of five by something like S215 year"
Commissioner Wooley expressed him
self of the opinion that within si'
months, and surely within a year, tn
railroads would come back to the inter
state commerce commission with just a
goo a case as they will make on March
for another increase in freight rates.
"Why should this be necessary" sait
the commission, when only few month
ago the president stated that an increas
In freight rates at this time would no
be in the public interest, and Direct0
General Hines has said repeatedly In tn
last few weeks that no Increase will b
necessary If the roads are retained unde
federal control-this in spite of the fac
that the coal strike and the steel strik
caused the roads to fall to earn th
standard return by approximately $50,
100000 in November, and that anothe
falling short of the standard return
though of smaller proportions, is to b.
expected from the same cause for Decem
ber."
The commissioner declared he was op
posed to government ownership If plai
could be found by which the roads coulC
be economically and efficiently handled
In the interest Of the public and stock
holders alike, In his opinion, however
'the only hope of preventing 1t lies II
holding the roads for period that vii
carry US over the reconstruction day
and back to normal"
Then he says it may be possible to fl
just what the measure Of rates shoulC
be under private control.
DA~ COMEAD