The New York herald., 1920-01-27
Congress Firm to
Return Railroads
to Their Owners
CONTINUED from Page Oneo

0O0, 900 in the cost OF living. The roads,
through increased rates, have also taken
in 81, 500 900, 900 more than they received in
the consumer the government operation
of roads means an increase of s12, SOC, 900. coo
to the consumer in increased living costs.
This does not take into consideration the
$500, 900 900 deficit tha has been entailed.
When the railroad bill emerges from
the conference committee it will be found
to resemble the House measure much
more than that Of the Senate.
The practical agreement that has been
reached eliminates the Cummins anti
strike measure and will probably substi-
tute the Mccormick amendment, which is
the application Of the so-caled Canadian
plan and eliminates the Transportation
Board. This amendment does not increas Sc
the Interstate Commerce Commission
eliminates the compulsory consolidation
to eliminate the five and one-half per cent
earning guaranty of the Cummins
measure.
The elimination Of the anti-strike clause
has been the hardest difference to adjustt
The proposed Mccormick amendment,
which was voted down in the Senate pro-
vides for wage adjustment board and
does not prevent strikes. but does call for
period of sixty days after the findings
are made before strike can be legally
called
Counts on Public Opinion.
1t is assumed that this period of time
would give public opinion an opportunity
to express itself and therefore would COM
pei both parties to agree to any findings
that might be made. 1t is recognized that
this is makeshift, but 1t Is thought this is
as FAR as Congress can go now 1t is
likely to be followed by an effort to Sc
cure the enactment of anti-strike legisla-
ton applicable to all Industrial disputes
and not alone to the railroad industry.
The next most difficult question Of ad-
justment has been section Of the Cum
Minis bill, which is the guaranty clause.
This guaranty idea Is based upon the Sem
ate bills conception Of the wisdom Of
consolidating roads. 1t was realized that
in the division Of roads into regional sys-
TENS, as contemplated, some would be
weak and others strong. 1t does not pro-
vide that the government shall make up
any deficit that may occur, but does pro-
vide that rates shall be so made as to
guaranteed 51s per cent.
1t is argued against this method of pro-
cedure that 1T would tend to extravaganza
and carelessness in management and
would destroy the protection which the
public might hope to have. 1t is sug-
gested in opposition 20 1t, that in the event
Of labor disputes, for example. the roads
would be more inclined to yield to unjust
demands. since they could expect rates to
be so fixed as to meet the added expense,
rnd that this adued expense would be met
by the public duplicating what are re-
garded as the evils of government opera
ton Since the consolidation features OF
the bill are to be abandoned it has been
easier for opponents Of the guaranty fea-
ture to oppose it.
ExtfavaSance Is Feared.
The division of the surplus earnings IN
the Cummins bill also is likely 10 be elm
mated on the ground that it would tend
TO extravaganza by the strong roads es'
tablishing a form OF service which their
weaker competitors could not meet and
thus defeating the purpose OF the pro-
posal by making it impossible for the
weaker roads to keep up with the pro-
cession. IT is assumed the stronger ROADS
would prefer to eXpend their surplus In
this way rather than to divide 1t with
the government and their weaker COM
petitors The proposition to give the In
terstate Commerce Commission the right
in the conference.
Some of the Senate Conferrees are still
holding out for concessions on their po-
sition especially as to the five and one
half per cent guaranty and the division Of
the excess earnings, but the practical
decision on a compromise that has beer
reached eliminates even these provisions
A tremendous advertising compaign IL
already being carried on by the carrieds
to educate the public to the necessity oi
increased revenues and moves by the car
riers and the brotherhoods are being care
fully watched by shippers, who. In q
sansc. represent tho public, because OF
identity Of interest. They are represented
by the Industrial Traffic League a ma
tional organization OF shippers. and by
the National shippers Conference, of Chi.
cago. which claims to represent seventy.
five per cent of the shippers of the coun.
| try
These organizations will oppose any
possible applications for increased rates
before the Interstate Commerce Commits
sion after the roads are returned.