The Mena weekly star., 1920-01-01
RAILROADS 60 10
 OWNERS MARCH 1
President Issues Orders for Return of Transportation Systems to Private peration--Action May Be De-
 layed by Congress.

Washington, Dec 25. President Wilson last night issued proclama- tions returning the railroads and ex- press companies to private control March |.
 Failure of congress to enact remed- ial Legislation was given as the reason for extending by two months the time originally announced for reinquishing government control of the railroad properties In his message to con- gress last May. President Wilson said the roads would be turned back at the end of the calendar year
 Not Ready For Early Return.
 No agreement having yet been reached by congress, Secretary Tum- ulty said fin announcing the proclama- tions, it becomes necessary in the public interest to allow reasonable time to elapse between the issuing of the proclamation and the date of it's actually taking effect The President is advised that the railroad and ex- press companies are not organized to make it possible for them to receive and manage their properties If actual ly turned over to them on December |31."
 The Esch-Cummins bill, designed to meet conditions incident to the return of the roads, now is fin conference, with the prospect that an agreement on differences between the House and Senate will be threshed out before March | While one provision of the bill would order the return of the roads at the end of the calendar month in which the bill was approved, 1t was considered hardly likely that an agreement would be reached quickly enough to put the roads back Febru- ary l. or one month earlier than or- dered by the President
 Bill Faces a Lively Fight.
 There are indications of lively fight before either house adopts the others position on anti~strilxe clauses of the bill or the question of contfnu- ing the government guarantee to the roads until they can obtain increased irates to meet advanced operating costs. Also 1t was said in congression- al quarters that because of the Presi- | made to rush through the necessary legislation
 Inasmuch as the staffs of the var lous systems have been retained vir- tually intact by the railroad adnlinis- tration the return of the railroads to private control will involve legal and financial rather than operating ques- tions. Those departments of the rail- road administration will remain in ex- istence with increased personnel for months after the operating officers i have left the government service Swagar Sherley, former chairman of the house appropriations committee and now director of finance for the railroad administration, probably will be the man chosen to wind up the gov ernments business In railroading.
 Express Companies May Unite. Even bigger problems confront the express companies Consolidated into one system under government opera tions, the four original corporations are reported to have asked the depart ment of justice if there would De any violation of the sherman antitrust law in their remaining a unit
 In two years of physical possession of the railroads, the government has encountered deficit of approximate ly 646 million dollars, according 10 estimates submitted by Mir Sherley to Senator Cummins When the roads were taken over January i. 1918, con- gross guaranteed them a rental of goo million dollars annually. based on the average income of a three-year test period operating revenues in 1918 fell l236 million dollars below the standard return and this year will be about z50 million dollars under that amount The remainder Of the deficit has Asi:sss; been incurred in expenses of administra- tion. inland waterways. etc.
 Two appropriations have been made by congress, one of 800 million dollars and the other ef 750 million dollars. much of which has been used as re- volying fund by the railroad corpora tions and for the purchase of new equipment. These amounts will be re- paid to the government.