The Washington herald., 1920-03-18
oosrrNunD FROM PAGE ONE.

order to facilitate the smooth tran
sition, Congress made a six months
guaranty that the carriers would
receive, as their operating income.
not less than one-hah of the
amount which had been named for
compensation to them under Fed
eral control. More than that, rates
were continued In effect until the
first of September, 1920. unless re-
duced with the consent OF the COM
mission. In addition to this. to help
the credit Of the railroads. fund
10 created Of S30o.ooo.ooo to enable
the government to make new loans
to those needing them.
The machinery for working this
all out with due safeguards to the
public, had TO be carefully consid-
cred, and the provisions seemed to
b. very we'll drawn. The confer
ence committee had the advantage
of advice of Mr. Swagar Sherley,
former Representative from Louis
willie, and one of the best and most
judicially minded lawyers the
House has had for many years. The
credit due him for this work was
freely accorded in the discussion
over the conference report.
Several Features Given Up.
OF the constructive features of its
bill, the Senate conferees had to
give up Federal Incorporation OF the
railrpads, compulsory consolidation
of groups Of them in seven years,
the creation of a transportation
board to take over the chief execu-
tive functions of the Interstate
Commerce Commission, and the
clause which, in1 effect, declared a
combination to obstruct interstate
commerce by strikes to be a GRIM
inal offense. The House conferees
were influenced in this opposition
doubtless, first by the State railroad
commissions, who feared they would
be ousted from some of their med
ding power, as they would be, and
ought to be, by Federal incorpora-
tion. and also by the protests Of
the labor unions against the anti
strike clause.
In the face of the coming cleo
tion and the threats of the oppos-
ing groups against individual mem
bers, the House could not be expect
ed to exercise the same courage as
the Senate. The Senate conferees
achieved more under these unfavor-
able conditions than. could have
been expected.
Federal Incorporation Likely.
Merger and consolidation of rail-
roads. with the consent of the In
terstate Commerce Commission, is
authorized and such consultations
are likely to lead to the adoption of
a comprehensive plan like that pro-
posed in the Senate bill. The act
requires the Interstate Commerce
Commission to take up the> subject
and report upon ii. with these con-
solidations is quite likely to come,
because of its demonstrated utility
and necessity, Federal incorporation.
While the anti-strike clause was
stricken out, n complete machinery
for arbitration is provided for
through a board. to consist of three
representatives of the unions. to be
selected by the President. out of a
list nominated by the unions, three
to be selected by him from a list
| submitted by the railroad managers.
and three to be selected by him on
behalf of the public.
A decision may be rendered b"
hve members, bat al least oce OF the
fpabiss resgeis aIstiyes T1Iat Noa eut
I 20 iG TO maze Il effective. T7As daE-
ger OF A Ad.Qcx u xsBesred tna
! probable herHuse q decnS5n Is rot
depe ndeBt EpCn tles consent x The
railroad ayers or - Tie Fai!roa :
| men through their representatives.
Caused Lsbor's Opposition. ~
1t was this feature among others
that aroused opposition OF the labor
unions. The railroad men have been
entirely logical in opposing the intro
duction of three representatives of
the public into the tribunal. They
deny that the public should have a
voice in controversies from which
| il suffers more than both sides.
Nothing in the bill prevents the men
from striking against an unfavor-
] able decision by this board, but full
| publicity of the decision and its rea-
sons are enjoined. The trainers OF
| the compromise look for sanction
| of the boards judgments in public
| opinion.
The effect of public opinion upon
| strikes, of course, is ultimately con-
| trolling; but while that is mani
] Testing itself, great injury may be
done. Still the railroad employees,
il they have not been blind, have
| observed that their unions are less
I
than they ever have been. and that
this is because the public, out of
self-defense, is taking hand in the
| controversy.
Useful Features Favored.
Among the useful features of the
\ act which both houses favored in
different forms, and which were re-
| framed by the conference, are the
requirements that all new securities
| to be issued by railroads shall have
the approval of the commission, and
that the commission shall have ex-
press power to forbid intrastate
rates fixed by State commissions
when they interfere with proper
regulation of interstate commerce.
The concessions made by them
enabled the Senate conferees to pre-
vail in respect to section of the
Senate bill, it's most important fea-
ture. in securing to the railroads a
fairer treatment than has been ac-
corded them by the Interstate Com
merce Commission. This was a
very great victory in view of the
unfair attacks that have been made
on II. 1t requires the Interstate
Commerce Commission to fix rates
on a basis securing to average rail-
road property grouped and valued
in sections to serve the same re-
gion a net income of 5h per cent
on it's value. ascertained by the
commission, with an additional half
per cent for improvements not in
creasing income.