The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-03-01
RAILROADS
AGAIN RUN
BY OWNERS
Interstate Commerce Com
mission Notifies Carriers of
New Rights and Privileges
Under Law.
HINES SOLE SURVIVOR
(By Associated Press)

roads of the country, operating for the
first time in 26 months under their
own management. were formally noti-
fled today by the interstate commerce
commission, of the new powers deleg-
ated to that body. and of the rights
and privileges accorded the carriers
by the new railroad law
The commissions announcement ex.
planned that the provisions of the law
against rate reductions prior to Sept
l. without the commissions approval,
were mandatory. but that charges in
rate regulations, classifications, and
practices. in which decision has been
entered by the commission. would be
effective as designated
Rule Changes to Stand.
All changes in rates and classifica-
tions effective prior TO today will
stand. the statement said.
The 230 lines that had been merged
into what was practically one gigantic
system, again went under control of
private interests, free to operate in
competition as of old.
The transfer from government to
private control was without incident,
and there was nothing to indicate to
the travelling public that there had
been change.
Hines Is Last Leaf.
OF the staff of directors and ex-
ecutives, who controlled the roads
during government operation, Direc-
tor-General Hines alone remains. He
will have no authority in directing the
operation of the systems, and remains
simply to clear up matters left pend
| ing when the government relinquished
| control.
These include thousands of claims,
contracts and grievances yet TO be
settled and among which are S3 COM
rensation contracts with various roads
which still are the subject of negotia-
| tons
| Under the so-called railroad reor-
ganization bill which governed the re-
turn of the transportation systems to
private ownership, but little jurisdic-
1 tion is retained by the government.
| Commission Has Powers.
| Under its terms the interstate COM
merce commission is given greater
powers to control rates and compul-
| sorry arbitration of labor disputes is
| required. The government also re-
| tains certain amount of control over
| the bond issues but at the same time
| insures a fixed percentage of profits
and makes it possible for the corpor-
ations to secure loans from a federal
fund set aside for that purpose.
Specifically, the bill authorizes the
president TO settle all questions. in
| Guiding compensation. and appro-
PIRATES 100000, 600 for this purpose
Standard Returns Provided.
Provides guarantee of standard re-
turns" to carriers for period of six
months after the termination of fed
eral control
Creates revolving fund of $780,
100000 for making new loans to car
| riers.
Creates a railroad labor board and
other machinery for the amicable set
tlement of disputes between employ
ers and employees.
Directs the Interstate commerce
commission to fix rates that will pro-
vide for two years 5h per cent re-
turns to the railroads on the value Of
the aggregate railway property devot-
ed to the public use.
Six Per Cent Limit.
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 re-
serve fund and the other must be
paid into a general contingent fund,
to be used to make loans to carriers
Gives to the interstate commerce
commission the power TO regulate the
issue of railroad securities.
Increases the interstate commerce
commission from nine to eleven men,
bers and their salaries from so 1000
to $4,000.
Labor's Attitude Waited.
Whether labor union leaders, who
stubbornly fought the measure in con-
gress, and later sought to have Pres
ident Wilson veto it, will test the con-
stitutionality of the bill in the courts
will be decided here today at the con-
ference of executives of the railway
brotherhoods.
The conference was arranged to con-
slider the presidents reply to their
formally presented objections to the
bill.
BOSTON, March 1.-The return of
New England railroads to private
ownership today was accompanied by
curtailment of passenger train service
on several lines as means of expe-
diting needed fuel and food deliveries
J which were held up by the recent
storms and freeze ups.
Fifty-one trains were cancelled on
the New York, Newhaven and Hart
ford. Other roads also reduced SER
, vice. The New Haven started a
, drive to move 1000 freight cars stalled
, in yards and on sidings in order to re-
, move the danger Of food shortage.