Evening star., 1933-05-04
ROOSEVELT ASKS
RAIL cO-ORD|NATOR
Special Message Sent to
Congress on Carrier
Reorganization.
Continued From First Page.)

| ID nclepy created Vne ONCE OF FEDERAL
co-ordinator of transportation, who
shall be appointed by the President
| with the advice and consent of the
Senate. or be designated by the Presi-
dent from the membership of the com
| mission
IF so designated, the co-ordinator
shall be relieved from other duties of
commissioner during his term of service
to such extent as the President may
direct"
Headquarters of the co-ordinator are
| 70 be In Washington. He is author
LED TO divide the lines Of the car
riers into three groups, to-wit, an East
ern group, Southern group and a
western group. and may from time to
time make such changes or subdivisions
In such groups as he may deem to be
necessary or desirable"
| Eastman Mentioned.
| "At the earliest possible date after
the co-ordinator shall have initialy
designated such groups" the measure
provides, three regional co-ordinating
committees shall be created, one for
each group, and each committee shall
consist Of not more than five members.
The carriers in each group. acting
each through its board of directors or
through an officer or officers designated
for the purpose by such board. shall
| select the members of the committee
representing that group. and shall pre-
scribe the rules under which such COM
mittee shall operate. In such selection
each carrier shall have a vote in pro-
portion to its mileage lying within the
group. subject to the approval of the
co-ordinator."
Joseph B. Eastman, member Of the
Interstate Commerce Commission, has
been widely regarded as likely to be
named the co-ordinator. The. Senate
would have to approve the choice. He
has been in consultation with the
President and his advisers repeatedly
on the legislation.
The President put in laborious hours
on the message, Speaker Rainey tell
ing reporters he had been up until
am, drafting it.
Removes Anti Trust Alibi.
The exact phrasing also kept him
busy through the morning, callers hav-
ing to wait.
Senator Robinson, the Democratic
leader, will pilot the legislation in the
Senate and Chairman Rayburn of the
Interstate Commerce Committee in the
House.
Both branches looked ahead TO
prompt committee hearings, in which
witnesses for the rails and labor will
testify first.
Representative Rayburn who with
Secret-ry Roper, Secretary Woodin,
Eastman. Senator Dill Democrat, Of
Washington, and DR.. w. NJ. w. Splawn,
expert with the Interstate Commerce
Commission, drafted the measure, said
in a statement that 1.-The railroads are
not only to be given an opportunity to
eliminate waste and uneconomical ex-
penditures but are to be encouraged to
do so. ."
THE bill removes the alibi which
the managements have been claiming
that alibi is the interference Of the So
called antitrust laws"
What BiII Provides.
By the Associated Press.
As explained today by Chairman
Rayburn Of the House Interstate Com
merce Committee, the railroad bill
which he introduced for the admin
istratiou provides:
A FEDERAL co-ordinator to effect econ
omies through a years suspension Of
! the antitrust laws affecting railroads.
The lines to be divided into three
sroups-Eastern. Southern and Western.
Three regional co-ordinating groups
shall be created by the lines in the re-
| spective groups to cooperate with the
| co-ordinator
Purposes Of the bill as outlined by
mote or require action by the carriers
which will:
Avoid unnecessary duplication OF
services and facilities of whatsoever
nature and permit joint use of terminals
and trackaga
To control allowances and other prac-
tices affecting service or operation, to
| the end that undue impairment Of net
earnings may be prevented.
To avoid preventable expense.
To promote financial reorganization
Of the carriers.
To provide immediate study Of other
means of improving transportation con-
ditions.
Voluntary Provisions Included
| Many Of the purposes of the legisla-
ton are to be carried out voluntarily.
The co-ordinator however, is empow-
| cred to direct elimination of services, to
provide means whereby central COM
mittees Of railway labor organizations
| shall be advised of changes in services
| affecting labor and directed to confer
with their representatives.
! Orders of the co-ordinator under the
act shall remain in effect until vacated
by him, but carriers and other inter-
eSted parties have right to appeal to
the Interstate Commerce Commission.
Carriers affected by the co-ordinat-
| or's orders are relieved from the opera
ton of the antitrust laws so long as
i the orders are in effect.
This. however, does not permit any
| infringement on the railway labor act
| or the obligations imposed under it
through contracts with labor organiza-
tions.
Fines Are Provided.
Failure or refusal to comply with the
co-ordinator's orders or those of the
commission. shall be subject to fines
up to $4,000.
The Interstate Commerce Commission
Is prohibited from approving loans to
be made to carriers by the Reconstruc-
ton Corporation without the consent
OF the co-ordinator. or unless it finds
that the financial structure of the car
riers assures it will survive the "existinp
economic depression" without financial
reorganization.
The act will expire at the end of one
year unless extended by presidential
proclamation for another year.
Orders Of the co-ordinator shall re-
main In effect however, until vacated
by the commission. or set aside by
other lawful authority.
In addition, the measure includes
two bills by Rayburn, already approved
by the Interstate Commerce Committee,
repeating the recapture clause of the
transportation act of 1920, which w.''
drop claims Of 1851 900 900 against rail.
roads for excess profits and to place
railroad holding companies under the
jurisdiction Of the Interstate Com
merce Commission.
TRUCC0 SEEN AS ENVOY