The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1920-02-13
new RAIL BILL
AGREED UPON
House and Senate ConfereeS
Iron Out Differences and Frame
a Compromise Measure.
CUT OUT STRIKE CLAUSE.
Measure Calls for Competitive Private
Operation With Guaranteed Earn
ings of 5H Per cent-Bill
Provides Final Court

Washington.-Legi for the re-
turn of the railroads to private owner
ship and operation on March l, when
the period of federal operation will
end, has been agreed upon. The con-
ferees of the senate and house who
have been meeting daily for a month
in an effort to compose the differences
between the Esch bill, passed by the
house, and the Cummins bill, passed
by the senate, concluded their work,
and will report the Conference Com
mittee's bill to the two houses of Con-
gress at once.
The measure will be given the right
of way in both houses, the confer
declared.
Briefly, the Conference Committees
bill provides for competitive private
operation of the roads, under control
of the Interstate Commerce Commits
sion, with a guaranteed earning on
actual property values of 51s per cent
and with present rates standing for
definite period, after which the COM
mission is given power to revise them.
Voluntary instead of compulsory con-
solidation Of the roads in competitive
systems is provided for.
A revolving fund of $300,000,000 Is
appropriated to aid the roads during
the period of transition. The conferees
also provided for the refundlng of the
roads Indebtedness to the federal gov
eminent during period of 10 years.
The drastic anti-strike provisions of
the Cummins bill were eliminated, and
In their place clause was adopted
creating regional wage and labor adj
justment boards, with central board
to be named by the President and ap-
proved by the senate having the final
decision. No penalty is provided for
failure to abide by the decisions of the
labor boards.
The senate was forced to yield on
many important points in the Cummins
bill and to consent to numerous modi-
flcations of its original program. Sen
ator Cummins, however, did not yield
on the much disputed Section 6, which
provides for fixed guaranteed oper-
ating income to the railroads during
| the transition period following federal
| operation.
Section 6 remains virtually as adopt
ed by the senate. Provision Is made
| for readjustment of freight and pas
senger rates by groups on such basis
as will guarantee to the roads in each
rate-making group an annual guaran-
| teed net operating income of 5h per
| cent on the value of the actual prop
| erty used or held for the Transports
| ton service. The period during which
the existing compensation paid the car
riers by the federal government as
rental shall continue was changed from
one year to six months.
The first rate revision necessary to
maintain the 51s per cent return Is to
| take place either one year after the
expiration of the guaranteed compen-
sation now being paid or two years
after the passage of the bill. The con-
| ferees have yet to agree on this point.
While the anti-strike provision was
erased, the conferees did not eliminate
| all labor clauses, as had been forecast
| In some quarters. The bill sets up a
series of regional adjustment boards
| and a central tribunal to which all ap-
peals will go. Whenever the regional
boards are deadlocked the disputes will
go to the appeal board automatically
| and when there is an agreement the
| decisions as to wage increases will
| have to be approved by the central
| tribunal The regional boards will be
! composed of representatives of the en-
ployers and the classified workers.
The appeal board will be an official
| federal commission selected by the
President and approved by the senate.
1t probably will be composed of five
members. This detail has not been
worked out.
The boards will have power to inves-
| tigate and to render decisions on con-
| troversies relating to wages and work
| ing conditions.