Evening star., 1933-05-28
SENATE VOTES RAIL
CO-ORD|NATOR BILL
House Expected to Reject
Prohibition of Dismissal
of Employees.
BY the Associated Press.

By the Associated Press.
The administration bill granting pow
er to Federal co-ordinator to work out
economies in railroad operations was
passed by the Senate yesterday and sent
to the House, where it will encounter op-
position because Of Senate amendments
to prohibit dismissals of employees in ef-
fecting retrenchments.
A similar measure before the House
Commerce Committee is expected to be
reported this week, but Democratic
leaders at that end of the Capitol said
it would not carry the labor clauses put
in by the Senate at the request Of the
railway labor unions.
House leaders intimated strongly the
bill would fail II these clauses remained.
holding economies could not be effected
unless some employees were dropped.
Suspends Anti Trust Laws.
As passed by the Senate after a six
hour-day amendment had been with
drawn on announcement that President
Roosevelt was against it, the measure
suspends the antitrust laws for one
year and authorizes a Federal co-ordi-
nator to effect economies in co-opera-
ton with three railroad regional COM
mittees by:
Eliminating unnecessary duplication
of services, arranging for joint use of
terminals and trackage. taking steps to
avoid waste and promoting financial re-
organizations to reduce fixed charges
and improve carrier credit. This sec
ton is for two-year emergency period,
but it could be extended another year
if the President desired
The bill has two permanent sections,
one repeating the recapture clause of
the transportation act retroactively and
the other placing railroad holding COM
paniss under Federal control.
Although the co-ordinator could not
fix rates, the bill sets up a new basis
for making by declaring broadly
that the Interstate Commerce Com
mission shall give consideration, in fix
ing rates, to their effect on traffic move
ments. the need of adequate, efficient
railway service at the lowest cost con-
sistent with furnishing it, and the need
Of revenues sufficient to enable the
roads to provide this service.
Fair Return Required.
An amendment adopted at the re-
quest of Senator Norris, Republican, of
Nebraska, would require the commits
sion to fix rates to give a fair return
upon either a basis of prudent invest
ment or cost of reproduction new,
whichever was the lowest
With either of these theories stand
ing alone, an unfair rate might re-
suit" Norris said There never will
be injury to any one if We couple the
two theories together"
Senator Black, Democrat, of Ala
bama withdrew his six hour day
amendment when Chairman Dill of
the Interstate Commerce Committee, in
charge Of the bill. announced he was
authorized to say the President opposed
it as unavoidable in this emergency
and that it would ruin the bill"
Dill added the Presidents position
had been explained to the railway labor
unions and they had agreed to abide
by it.
The action was not interpreted by
Senator's as blocking a shorter work day
for other industries, but as merely ap-
plying to the railroads.
Just before passage Senator King,
Democrat, of Utah. assailed it as a step
ping stone to Government operation
and as taking the path to "autocracy
in economic activities which. If persisted
in. will eliminate in a political dicta-
torShip'
Borah Fights Provision.
Senator Borah, Republican. of Idaho.
also expressed opposition to setting
aside the antitrust laws to permit
mergers and consultations as the roads
saw fit, but Dill explained there was
nothing in the bill that enlarged the
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