Evening star., 1920-02-29
Powers Conferred on Chief
y Executive Vested in Di-
rector General. |
SYSTEMS RUN BY U. S.
$ SINCE DECEMBER, 1917

Government Control Leaves uehclt
Of $715,50o, 900 Incurred
il 26 Months.
President Wilson last night signed
Ahe railroad bill. providing for the
return Of the roads to private control
at 1901 am. tomorrow, and at the
same time replied to the recent let
ter Of the railroad brotherhoods by
saying the way is now open for i'm
mediate action on tho wage matter IN
accordance with the terms Of the
bill"
In . proclamation issued at the time
he signed the compromise measure
the President vested In Director Cen
eral Hines Of the Railroad Admins
tration virtually all powers conferred
On the chief executive in the bill.
The property which the government
will hand back to the owners tomor-
row morning includes 100000 miles OF
main line railroad and terminals
which with the equipment are valued
at $50, ,eoo. 100000. The government
has had control Of these lines since
December 2s, 1917, and the proper
ties will 70 back leaving the govern
ment with a deficit OF $715.ooo.ooo in
eurred during the twenty-six months
aimee that date. But in report TO
President Wilson covering the period
of government operation Mr.. Hines
s.v. that .federal operation has cost
ths public considerably less under the
eonditions. through rates and taxes.
than would have been the case uh-
der private control"
Prsy1sisns Of Bill.
After 1901 o'clock tomorrow morn
ing President Wilson will have none
Of the yowers conferred upon him by
tbs railroad control act. the bill pro-
vides. The act empowering the Presf-
dent to take possession and assume
control OF any system Of Transports
.tieu In time Of war Is not repealed.
however.
The labor preyisions Of the bill
brisily are AZ follows:
Compulsory submission Of labor dis
putss to a. permanent railroad labor
board. This beard Is to be appointed
by the President 1t consists Of nine
members. thresT to be representatives
Of the emDloyss. three to represent
the raiirsad managers. and three to
rspreseat the public. There is no pro-
visiouf in the bill for enforcement of
the decisions Of the board. though
they are hnal. There is provision.
however. for giving the findings of the
hard the widest publicity.
At the outset of tho labor provi-
sien the bill says. ut shall be the
duty Of an carriers and their officers.
employees and agents to exert every
reasonable effort and adopt every
available means to avoid any inter
yuption to the operation Of any car
Tfer growing out Of any dispute be-
tween the carrier and the employees
or subordinate officials thereof" Per-
mission il then granted for the es-
tablshmept of railroad boards of
labor adjustment" representative of
the roads and their employees. though
NO rule for their organization is laid
down. II disputes are not settled by
the adjustment boards. then they may
be taken to the federal board.
Federal Railreaa Board.
The members of the federal rail-
read labor board are to receive sal
aries Of $4,000 a year and to be ap-
pointed for terms Of five years after
the original appointments. OF the
original members one from each
group Is to be appointed for a term Of
three years. one for a term of two
ysars and one for term Of one year.
Ths labor board Is to maintain CEN
trsl Offices in Chicago.
Tho bill provides that no carrier
ehall reduce the wages of its en-
poyes below the rates now paid prior
to September /. 1920. There is moth
ing, however, in the bill to prevent
wages from being increased in the
period of six months in which the
employees are guaranteed there shall
be no decrease Of wages.
The rate-making section of the bill
provides that tho Interstate Com
merce Commission in establishing
rates shall do so on a basis that will
yield . return Of 51a per cent of the
,aRGrsgats property Of the carriers.
sGhis for . period of two years after
the return Of tho roads. Thereafter
ahs commission may determine what
NJ q fair return to the roads and AK
rates accordingly. The bill also pro-
Hidss that tho commission. in fixing
rates, may add q sum not exceeding
ene-half Of ] per cent to tho earnings
OF the roads to mako provision for
improvements and betterments.
When . carrier receives a not re-
turn In excess Of per cent. one
half Of the excess goes to the carrier
trsssrve fund. and one-half to tho fed
sral railroad contingent fund. which
Ne to be used by tho commission in
making loans to railroads or in par
.ehasing railroad equipment to be
leased to roads desiring 1t.
The bill gives . government guar.
aaty to railroads against . deficit for
the arst six months after the roads
are returned.
An appropriatien Of ssoo. o.coo.cDe /.
authorised to be used as a~revolvins
fund from which to make loans tc
railroads now requiring capital. An.
other SCOT. .ooe. .ooofs authorized TO set
1is claims that may be brought agains