Perth Amboy evening news., 1920-03-01
R. R. CONTROL
ENDED TODAY
Riding Public Notice no Change
in New Conditions
ADMINISTRATION IS THROUGH
Hines to Clear Up Work--New
Bill Provides for Relief of
Roadside Act In Labor
Disputes
ADMINISTRATION IS THROUGH
BIZ The 4 ssoointed Press.

By The Associated Press.
WASHINGTON, March The
United States Railroad Administra-
ton. the governmental agency. which
for more than two years has controll-
ed the operation of the nations rail-
road system, today passed out of ex-
istence.
With its passing the 2s0 lines that
| had been merged into what was prac-
tically one gigantic system, went un-
der control of private interests free
| to operate It's competition as of old.
The transfer was without incident
and there was nothing to indicate to
! the travelling public that there had
been a change. or the staff of diree-
tors and executives, who controlled
the roads during government opera
tion. Director General Hines alone re-
mains He will have no authority In
directing the operation of the sys-
tens and remains simply to clear up
matters left pending when the gov
ernment relinquished control. These
include thousands of claims, cor
tracts and grievances yet to be set
tied and among which are eighty
three compensation contracts with va
rious roads, still the subject of nego-
tiations.
Under the so-called railroad reor
ganization bill which governed the
return of the transportation system to
private ownership, but little jurisdic-
tion is retained by the government.
Under its terms the interstate com
merce commission is given greater
power to control rates and conpul
sorry arbitration Of labor disputes is
required. The government also re-
tains certain amount of control over
their bond issues, put at the same
time insures a fixed percentage of
profits and makes its possible for the.
corporations to secure loans from
federal fund set aside for that pur-
pose.
Specifically the bill authorizes the
President to settle all questions, in
cludmg compensation, and appropri-
ates 5000, 300, 600 for this purpose.
Provides guarantee of STANDARD
return" 10 carriers for period OF
six months after determination cf
federal control.
Creates u revolving fund OF
$500, 100000 for making new loans
to carriers.
Creates railroad labor board and
other machinery for the ainieablss
settlement of disputes between er1l-
ployers and employees.
Directs the interstate commerce
commission to fix rates that VIII pro-
vide for two years five and one half
per cent. returns to the railroad ALL
the value of theF aggregate RAILWAY
property devoted to public use.
Provides that if any carriers earn
in any year net operating income ~
excess Of six per cent. one-half OF such
excess must be placed in reserve
fund and that the other half must
be paid into a general contingent fund
TO be used TO make loans to carriers
Gives to the interstate commerce
commission the power to regulate IS
sues OF railroad securities
Increases the interstate commerce.
commission from nine to eleven mem
bors and their salaries from s1o,eoo
to $4,000.
Whetber labor union leaders who
opposed the measure in congress ara
la ted sought to have President vii
son veto It, viii test the constitution
ality of the bill In the courts. VIII De
decided here today at the conference
Of executives Of the railway brother
hoods The conference was arrnnSen
to consider the Presidents reply 70
! their formerly presented eb5ections
! to the bin.