Pine Bluff daily graphic., 1920-03-02
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Washington, Mar. 1.-Transfer to- day of the railroads from govern
 ment to private control marked the
 beginning of great activity at the
 interstate commerce commission and.
 simultaneously, the closing up of af-
 fairs of the railroad administration. Officials of the roads were notified
 by the commission of the increased jurisdiction of that body under the new railroad law. Director General Hines concluded negotiations on IS compensation contracts by which the roads involved were paid the annual rental due them for the 26 months of federal operation. Settlement of claims was begun.
 The question of operation of, the Cape God canal, which was idle to- day, had not been decided tonight MT. Hines has no further authority to manage the canal and the sec retary of war and owners of the water way have. not been able to agree as to it's value for govern ment purchase, department of justice officials who conducted the investi gatlon were without authority to pro- | ceed further, having carried the case to jury award which like the canal owners proposition, was said not to be acceptable to the war department.
 Change Sunday.
 The operating division of the Unlted States railroad administra- ton, the governmental agency which for more than two years has con- troiled the operation of the nations railroad system, today passed out of I existence. With its passing at mid night the lines which had been mer- ged into what was practically one gigantic system again went under control of private interests, free to operate in 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.
 Of the staff of directors who con- trolled the roads during government operation, Director General Hines alone remains. He will have no authority in directing the operations, and remains simply to clear up mat 1 teres left pending when the govern ucHC TclluqulSneu control.
 They include thousands of claims, contracts and grievances yet to be settled and among which are 83 com pensation contracts and various roads which still are the subject of I 
 Under the so-called railroad reor- bill which governed the return of the transportation sys- tems to private control but little jurisdiction is retained by the gov ernmen;
 Under it's terms the interstate commerce commission is given great CT power to control rates and com pulsory arbitration of labor disputes IS required. The government retains a certain amount of control over bond issues but at the same time in- sures fixed percentage of profits and makes it possible for the corpor- fund set aside for that purpose,
 Specifically the bill authorizes the president to settle all questions in- cluding compensation, and appro- priates 23,OOO,0OO for this purpose. Provides guarantee of standard return" to carrier for a period of six months after the termination of federal control.
 Creates a revolving fund" of for making new loans to carriers.
 Creates a railroad labor board and other machinery for amicable settle ment of disputes between employees and employers.
 Empowers the interstate commerce to fix rates that will pro- vide for two years 5 1-2 per cent re. turns to be railroads on the value of the aggregate railroad property de- voted to the public use.
 Provides that if any carrier earns in any year a net operating income in excess of six per cent. one half of such Excess must be placed in a | reserve and the other half paid into a general contingent fund, to be l used to make loans to carriers.
 Gives to the interstate commerce the power to regulate 1 the issue of railroads.
 Increase the interstate commerce from nine to eleven members and their salaries from S10,O00 to $12,000. |