Norwich bulletin., 1920-03-01
Railroads Are Back to Private Control
Director General Hines Made the Transfer Effective at Midnight, Sunday.

the Transfer Effective at
 Midnight, Sunday.
 Washington, Feb. 2S-Americas rail transportation systems, operated as one great public utility since Decem- Der 2S, 1917. again will be divided among their 230 respective corporate owners when the government releases control at midnight. Director Gen eral Hines, as agent of the president, will hand over the properties and equipment, valued at approximately $2o,00G,000,000 to their old direction, free, except for the Jurisdiction re- taIned by the government in the new railroad reorganization bill.
 While all arrangements for formal restoration of the carriers to their owners were completed yesterday by Mr. Hines, instructions went out to- day to operating representatives of the railroad administration, informing them that they would report to the proper officials of the corporation which resume control at 12:01 am, March IF
 Of the gigantic organization, creat- ed by Former Director General McAdoo as a war time expedient only small part will remain. Regional officials, federal managers and treasurers and AA1elli9 AlSn OllECldlS COIupllSlllS the l director generals staff will cease to ! function asrsuch at the designated l hour. Some of these have gone back 1 to their former places as officials of l the corporations while others have en- l tered into new lines of endeavor 1 MT. Hines will continue in his pres l ent capacity until about May 1. AL i though without any railroads to di- 1 rect, he still faces the settlement of literally thousands of claims, con- i tracts and grievances. Only 147 of the 230 compensation contracts with i the corporations actually were sign ed during government control, and l the remainder will continue to be the l subject of negotiations Damage i claims have arisen of which many are ! still pending. Labor has several 1 thousand cases before the government i wage boards and Mir. Hines has as- sured the labor spokesman these will 1 be concluded. Some will require the i payment of retroactive wages if de- cided in favor of the workers, and others will mean the establishment
 of interpretation of agreement wnict
 labor, Of course. will refuse to have altered Ey the corporations.
 1 The reply given by President Will son 10 labors objections to the reor- ganization bill will be considered to- morrow by the railroad unions chiefs l All of the union executives who art here will be called into conference fol the purpose of agreeing on public
 expression of railroad lalbors attitude
 There was no indication tonight a. 1 to sentiment among the leaders wht
 had read the presidents statement 1T
 answer to their request that he with.
 hold his approval from the bill The,
 said they had stated their case ant that until policy can be determined
 they would remain silent as to futur, ] action. 4e.sszsss -s.es4ss afs-
 With the lines again under privat
 control, there will be almost immed
 lately resumption of the days o
 competition" Corporation heads hav
 been preparing for this for severa
 months. The various roads will at
 tempt to divide again the bushes
 which has been handled jointly duriny federal control, reports indicated
 The roads go back to private con
 tfo1 under largely new conditions The railroad bill, signed last night b, :, the president, gives the system cer tain new privileges but, as an offse
 it enlarges the Interstate Commerc
 Commission, both in power and per sonnel. The corporations no longe are master completely of their bon , issues nor are they allowed to stan
 solidly against labor, for labors de
 mands, if not met by arbitration an negotiation between the parties con , cerned go. to the high court provide , in the bill and on which sit public labor and railroad representatives.
 In resuming operation of thei properties, the corporations have particular valuable psychological as , set bequeathed them, in the opinio
 of Director General Hines. The cor , porations, he believes, have publi 7 sentiment as favorable to them as a any time in their history. Also tn properties are regarded by those wh
 have controlled them for the last tw
 years as being able to meet the heav jest demands which can be expecte |, , to be made upon them.
 As for finances MT. Hines has as f serted that the corporations woul Y have had difficulty obtaining the nee
 essary credit had the government nc l extended its care to them during tn $ war. This difficulty has been sWer aside to some extent for the road
 can obtain loans from the govern ment in these days of strained credi a it was explained. The Interstate Com
 merce Commission also is bound b
 law to consider the roads financi;
 status in rate-making to the proper
 ties may always stand on a solt 2 base
 Development of water transporta t tion. instituted by the railroad admir- istration, is sto be continued under d t rection of the war department If . whole organization which has handle this part of the railroad administrs s tion's duties will be transferred to u n jurisdiction of Secretary Baker. Tn y includes the operation of barges an e towboats on the Mississippi River bt
 tween St. Louis and New Orleans t between the Alabama coal fields an s the Gulf of Mexico on the WarriC
 River project; on the New York bars T canal and on the Delaware and Rar I tan Canal. These waterway system t are regarded by MT. Hines as repre- a senting a mere beginning, and 1 p relinquishing control of them advc
 cates Continuation of the develoT
 ment fin order that practicable te
 may be made of utilizing the nation s inland waterways.