The Holly chieftain., 1920-03-04
RAILRAODSlBACK
TO ThEIR0WNERS
Transfer by Federal Gov
eminent Monday.
PNE&IDENT STILL HAS
AUTHORITY IN DISPUTES
New Railroad Reorganization Bill
Also Gives interstate Commerce
Commission Broader Powers in
Control OF Rates.

Control Of Rates.
The Pueblo StarJournal of Mon
day evening publishes the follow
ing Associated Press dispatch rela-
tive to the return Of the railroads
to their respective owners
WASHINGTON, March 1.-The
United States railroad administers
ton, the governmental agency
which for more than two years has
controlled the operation of the ma
tons railroad systems, today pass
ed out of existence With it's pass.
ing at midnight the $50 lines that
had been merged into what was
practically one gigantic system
again went under control OF pri-
vate interests free to operate in
competition as of old. The transfer
was without incident
OF the staff OF directors and exec
utives who controlled the roads
during the government operation
Director General Hines alone re-
mains simply to clear up matters
left pending when the government
relinQuished control These in
clude thousands of claims, con.
tracts and grievances yet to be set
tied, and among which are SO com.
pensatiOn contracts with various
roads which still are the subject of
negotiations
ganizatfOn bill which governed the
rot, ~ hn %vn tot
TENS to private ownership, but lit
tie jurisdiction is retained by the
government. Under its terms the
interstate commerce commission is
given greater power to control
rates and compulsory arbitration
Of labor disputes is required. The
government also retains certain
amount Of control over their bond
issues, but at the same time insur-
es fixed percentage of profit and
makes it possible the corporations
to secure loans from federal funds
set aside for that purpose.
Specifically, the bill authorizes
the president to settle all ques-
tions, including compensation, and
appropriates $2OO,OOO,OO0 for this
purpose. Provides guarantee of
standard return" to carriers for a
period OF six months after the
termination OF federal control. Gre
ates receiving fund of $1,000 COX, 600
for making new loans to carriers.
Creates railroad labor board
and other machinery for the annie
able settlement of disputes be
tween employers and employees.
Directs the interstate commerce
commission to fix rates that will
provide for two years 5Ka per cent
returns to the railroads on the
value OF the aggregate railroad
property devoted to the public
use
Provides that if any carrier earns
in any year a net operating income
in excess of per cent, One-half of
such success must be placed in q
reserve fund and the other half
must be paid into a general con-
tingent fund to be used to make
loans to carriers.
Gives to the interstate commerce
commission from 8 to II members
and their salaries from $4,000 to
Whether union labor leaders.
who stubbornly opposed the
measure In congress and later
sought to have President Wilson
veto it. will test the constitutional
ity OF the bill in the courts will be
decided here today at the confer
ence OF executives of the railway
brotherhOods. The conference was
arranged to consider the presidents
reply to their formally presented
objection to the bill.
WASHINGTON, March Rail.
roads OF the country, operating for
the first time in 26 months under
their own management, were form
ally notified today by the inter
state commerce commission of the
new powers delegated to that body
and OF the rights and privileges &C.
corded the carriers by the new rail
road law. =
The commissions announcement
explained that provisions of the
law against rate reductions prior
to September l. without the com.
missions approval were mandatory
but that changes in rate reQ1lls-
tons, classiflcations and practices
in which decision had been enter.
ed by the commission would be ef.
fect1ve on the date designated. All
changes in rates and clasificatiOns
effective prior to today will stand.
the statement said.