Evening star., 1933-06-17
EASTMAN TO SEEK
! RAIL ECONOMIES
Federal Co-ordinator to Con-
Duct Study Looking Toward
T Permanent Legislation.
~ the Associated Press.

A new avenue of approach to Solu-
tion of the difficulties besetting the ma
tional rail structure was opened today.
After executive approval of the emer-
rency railway legislation yesterday,
President Roosevelt appointed Joseph B.
Eastman, a member of the Interstate
Commerce Commission, as Federal CO.
prdinator of transportation to direct the
operation of the new law. Eastman also
continues On the commission.
Exploration of the possibilities Of rail-
road economies will be one of Eastman S
biggest jobs. But he said in state
ment that 80 far as the immediate or
early accomplishment of important
economies is concerned, the restrictions
of the act with respect to reduction in
the number and compensation of rail-
road employees will probably constitute
serious obstacles"
Plans Still Incomplete.
Eastman, who helped draw the law
under which he will act. said he was
working on his organization. but 1t still
was so incomplete that nothing could be
said about 1t at this time. None of the
regional co-ordinators has been select
ed and none probably will be for time.
Eastman issued the following state
ment:
THE emergency railroad transporta-
ton act of 1888 does not pretend to
be a complete or final answer to the
transportation problem of the United
States. Nor does it put the railroads
under the control of a Federal railroad
cZar.
1T is a temporary and preliminary
measure which is designed to pave the
way to a comprehensive treatment of
the transportation situation of more
permanent and enduring character.
ITO this end it sets up Federal CO.
ordinator of transportation, who is not
to manage the railroads but whose duty
It is, with the aid of the Interstate
Commerce Commission, to help the rail-
roads in exploring all possibilities for
the avoidance of waste and preventable
expense and to encourage and promote
and, If need be, require action which
will have that result.
Study for Future Needs.
"He has the further and very i'm
portant duty of carrying on research
and study for the purpose of recon-
mending to the President and to Con-
gress such further legislation covering
all phases of the situation as may be
necessary and practicable to place
on a strong and stable basis and in q
position to provide the facilities which
the commerce and industry of the Ma
ton require.
so far as the immediate or early
accomplishment Of important econo-
mics is concerned the restrictions of the
act with respect to reduction in the
number and compensation of railroad
employees will probably constitute seri-
Gus obstacles.
They will not pervent, however,
thorough exploration of the possibilities
in the way ui economies, and the in
formation thus gained is bound eventu-
ally to be Of value.
Nor will tley interfere in any way
with the research and study looking
to further legislation of a more perma-
nent and enduring character for which
the act provides"
Anti Trust Laws Suspended.
The act has one emergency and two
permanent &atures.
Under the former the antitrust laws
are suspended for two years to permit
the Federss co-oriinator, in conjunction
with regional committees of the carriers
from the East, West and South, to
work out economies through uniflcation
Of services and elimination of waste
and to promote financial reorganization.
The permanent clauses give the IN
terstate Commerce Commission control
over holding companies, which hereto
fore have effected consultations of
the railroads without approval of the
commission, and repeal the recapture
provision Of the interstate commerce
act under which the roads have been
required to pay Uncle Sam one half
OF all earnings in excess of 6 per cent.
Under the latter provision, the roads
will be given back sl3,000,000 in such
earnings and Government claims to
$342 600, 600 more will be released
The act directs the co-ordinator to
submit recommendations to the COM
mission for further legislation looking
to the improvement of the transporta-
tion systems and while 1t does not
affect rates as such, it provides a new
basis for rate making.
While the CO. ordinator will have the
power to compel recalcitrant roads to
effect certain economies. any interested
party may appeal to the Interstate
Commerce Commission to modify or set
aside his order.
In achieving savings, labor is pro-
tected under a provision prohibiting
dismissal Of employees, but permitting
the roads to leave untitled any Jobs
vacated through death, resignation or
retirement