The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-03-01
Hines STAYS WITH
ROADS TO WIND Up
PENDING DISPUTES
Transfer From U. S. to Private
Control Of 230 Lined AC-
COmpIished Without Un-
usual Incident.

WASHINGTON. March The Unit
cd states railroad administration, the
governmental agency which for more
man TWO years has controlled the OBJ
eIatlon OF the nations railroad sys-
TENS. Monday went out of existence.
WIN It's passing at midnight the $50
INES that were merged into what was
practlcally one gigantic system again
came under control of private interests,
Tree TO operate in competition as of old.
The transfer from government to pri-
Vate control was without incident and
there, was nothing to indicate to, the
travelling public that there had been a
change.
OF the staff of directors and execu-
tives who controlled the roads during
government operation, Director General
Hres alone remains, He will have no
authority in directing the operation of
the systems and remains simply to
clear up matters left pending when the
government relinquished control. These
include thousands of Claims contracts
and grievances yet to be settled and
among which are SO compensation con-
tracts with various roads which still
are the subject of negotiations.
Under the so-called railroad reorgan-
lzatlon bill which governed the return
of the transportation systems to pri-
Vate ownership but little jurisdiction Is
retained by the government. Under its
terms the Interstate commerce commits
sion is given greater power to control
rates and compulsory arbitration of
labor disputes is required. The govern
ment also retains a certain amount of
control over their bond issues but at
the same time insures fixed percent
age of profit and makes 1t possible for
the corporations to secure loans from
federal fund set aside for that pur-
pose
( president to settle all questions, in
Guiding compensation. and appropriates
$500 900 900 for this purpose.
Board for Disputes,
Provides guarantee of standard re-
turn to carriers for a period of six
months after the termination Of fed
eral control.
Creates receiving fund" Of $780,
100000 for making new loans to car
liers.
Creates a railroad labor board and
other machinery for the amicable set
Element of disputes between employers
and employees.
Directs the interstate commerce COM
mission to fix rates that will provide
for two years 512 per cent returns TO
the railroads on the value of the ag-
gregate railway property devoted to the
public use.
Provides that if any carrier earns in
any year a net operating income in ex-
cess of per cent, one-half of such
excess must be placed in a reserve
fund and the other half must be paid
into general contingent fund. to be
used to make loans to carriers.
q Gives to the interstate commerce
Commission the power to regulate the
Issue of railroad securities.
Increases the interstate. commerce
commission from nine to IL members
and their salaries from $4,000 to $4,000.
Whether union labor leaders, who
stubbornly opposed the measure in
congress and later sought to have
President Wilson veto it will test the
constitutionality of the bill in the
courts will be decided here today at the
conference of executives of the railway
brotherhoods. The conference was ar
ranged to consider the presidents reply
to their formally presented objections
10 the bill.