Newspaper Page Text
Atlanta Stoumal
VOL. XXII. NO. 45.
SOME DEMOCRATS
HOOVER 15
ST.WDBEffi
Sentiment in Seventh Dis-:
trict Decidedly in Favor of 1
Former Food Administra
tor for President
- .
ft
DeKalb Democrats
Demand Hoover’s
Name on Ticket
The Democrats of DeKalb coun- i
ty in mass meeting assembled at I
noon Monday, adopted resolutions j
calling on the state executive ;
Committee to place the name of
Herbert Hoover on the ballot to
be voted in the presidential pref
erential primary to. be held in
April.
The meeting was largely at
tended. there being present dur
ing the noon recess of court rep- j
resentative Democrats from every ;
one of the eighteen militia dis
tricts of the county.
In addition to demanding that
Hoover’s name be placed on the
ballot, the resolutions which were
offered by Mayor Leslie J. Steele,
of Decatur, a former member of
the legislature, instructing the
Democratic executive committee
of DeKalb county to have the
name of Mr. Hoover printed on
the preferential presidential bal
lot in the event that the state
executive committee persists in
its determination to eliminate the ,
former food administrator.
BY WALES THOMAS
(Staff Correspondent of The Journal)
ROME. Ga., March I.—The Demo
crats of the Seventh congressional
district want Herbert Hoover to be j
• the standard bearer of the party in •
November. The whole district is ■
aflame’ with Hoover sentiment, and |
there has been no such unanimity of j
opinion since the nomination of I
Woodrow Wilson in 1912, according |
to reports reaching this place.
Political leaders of every faction :
are either openly advocating or lean
ing strongly toward Hoover. A ma
jority of the newspapers of the;
Seventh district are supporting him I
editorially. In fact, only one paper i
in the district is opposed to him, j
and that is in one of the smallest i
counties. |
Democrats of the Seventh district,
the one Georgia district where Demo
crats have to fight for victory at the
polls, tak - the position that the at
tempt to bar Hoover l(i the prefer
ential primary is inconsequential and
will melt before the wave of popular
sentiment for the former food ad
minsitrator. They state quite frank
ly that the Democratic party ceases
to function when it becomes callous
to the will of the people, and ridi
cule the suggestion that a sub-com
mittee can be The judge of whether
or not a man is worthy of the suf
frages of his fellow man.
Floyd. a Strategic County
Floyd county is strategic. It has
been long regarded as one of the
greatest political battlefields of the
state and aside from being the me
tropolis of the district, the “Bloody
Seventh,” it has nearly always been
on the side of the winner. Ftoyd
county is for Hoover. There isn’t
the slightest doubt of that.
Isaac May, proprietor of J. Kutt
ner & Co., one of the largest depart
ment stores of the state and a repre
sentative business man, is authority
for the statement that he believes
that three-fourths of the business
men are for Mr. Hoover, and there is
no doubt about Floyd county’s being
lor him.
H. A. Hicks, proprietor of the Gen
eral Forrest hotel, states that four
out of five of his guests, including
men of political complexion, are out
spokenly for Hoover. “I am a fair
ly good judge of political sentiment,” .
stated Mr. Hicks. "You can quote me
as saying that Mr. Hoover not only
.would carry Floyd county, but that
he has a great, chance of carrying the
Upited States, from the information
I am able to gather.”
Dr. J. C. Watts, prominent physi
cian. declared that Hoover is the
choice of the people with whom he
has come in contact. “When a man
is as well advertised as Mr. Hoover,
as well known by’ the women and
children —in fact a household word —
and when there is nothing to be
brought against him politically, it
is mighty hard to him off. I
am for him and I think the people
are.”
Both Papers Together
Both of the newspapers of Rome,
the Tribune-Herald and the News,
are not only openly insisting that the
Democrats of the state be allowed to
vote for Hoover, but are espousing
his candidacy. This is indicative of
the unanimous opinion that Mr.
Hoover is the choice of Floyd county.
J. D. McCartney, managing editor
of the said:
“You cafi quote me and the Trib
une-Herald at any length and* with
any degree of enthusiasm as being
unqualifiedly’ for Mr.' Hoover* for
president. You may rest assured
that we thoroughly disapprove of
the suggestion that his name be kept
from the ballot. The Democratic
party ceases to function when a
small committee sets itself up as
guardian of the people’s ability to
act intelligently.”
G. A. Edwards, manager of the
Rome News, said:
“The News’ position, taken some
(Continued on Page 6, Column 1)
CURED HER FITS
Mrs. Paul Grain, residing at 916
Fourth Street, Milwaukee, Wis., re
cently gave out the following state
ment: ”1 had suffered with Fits
(Epilepsy) for over 14 years. Doc
tors and medicine did me no good. It
seemed that I was beyond all hope
of relief, when at last I secured a
preparation that cured me sound
and well. Over 10 years have passed
and the attacks have not returned.
1 wish every one who suffers from
;his terrible disease would write R.
• J’. N. Lepso, 13 Island Avenue, Mil
waukee. Wis.. and ask for a bottle of
the same kind of medicine which
rtf gave me. He has generously
promised to send it prepaid free to
any one who writes him.” —(Advt.)
7. Turns Tack the Most Valuable
Aggregation oj Property in TV or Id
1 | sengers increased 43 per cent i.i
WASHINGTON. D. C., March 1.—■ • 1919. but payrolls and increased cost
The most valuable aggregation of: [ot cOal ancl materials rose SI percent
I / i-F \ uncle bam paid out to railroad la
property .tn the world today goes | ! bor in 1919 approximately $2,600.-
back to the hands of its private own-; ihf f t'X i 000,010. For coal he spent $550,-
ers after two years in the hands of I >7 Ml tasfe, I 000,000: materials. $1,316,000,006;
Uncle Sam. The railroads of the | taxes. $310,000,000; a total of $4,666 -
United States, whose book value is /- ! 000,000.
approximately $19,00.0.000,000, in-' ..rY L" 'lAx. I The difference between $51.7.006,-
. 7:
<
vV //
/FPEIGHT" Y/ PULLMAN IF/PAS.SENGFR.\/7 / MX//
I CAR-S \ CARS Vll/ CARS y /LOCOMOTIVES
It £ 2.34,000
L Aa MILES OF ]
fir I Iw road.//
\\ Y / 112,000,000 \ /Z
RAILROAD X 1919 X Z
employees/; RECE?iPTr.\
X" *5,181,000,000 ft 200
J PAILPOAD
SYSTUMcS*
LE.R. Hr
dude almost one-third of the total
lailroa'd mileage of the whole world
Out of 729,845 miles of rail on the
earth, the railroads of the United
States comprise 233.599 miles
Compared to this, Russia’s mile
age of 48,955 (1916) is inconsid
erable, and yet Russia has the sec
ond largest railroad mileage in the
world. Canada, has only 37,431
miles; France, 31.958: Germany. 39,
600, while the British lAes have
only 36,286 miles.
Uncle Sam hands back to the
private owners a total of 200 rail-
Federal Court Decrees
On Re-sale Price Fixing
Reversed by High Court
WASHINGTON, March I.—ln in
terpreting the Sherman anti-trust act
today the supreme court reversed
federal court decrees which held that
the statute did not prohibit resale
price fixing unless there was inten
tion of creating a monopoly.
The opinion was rendered in the
government’s appeal from dismissal
in Ohio of federal indictments
charging A. Schrader’s Sons, in
corporated, manufacturers of acces
sories for pneumatic tires, with par
ticipation in a combination in re
straint of trade through contracts
by which resale prices to retailers
8 - MORE DAYS * 8
, Left in Which to Take Advantage of the
“BIG SIX”
CLUBBING OFFER!!
Beginning with the issue of March 9, 1920, the Atlanta Semi-Weekly Journal which has been coming
to "you twice a week will be changed to the Atlanta Tri-Weekly Journal, coming three times a week.
In this day of progress and advancement we feel that you cannot afford to miss this opportunity to
place on your family reading table the very best newspapers, farm papers and magazines that are obtainable.
Each publication has the South at interest, dealing with problems that affect your every-day life. To miss
this opportunity to secure these papers at the price we are offering them would be to deprive yourself of the
benefit and education that you will be sure to derive from them.
Place the Best in News, Science, Fawning and Fiction on Your Family Reading Table >
for 10c Less Than What You Will Have to Pay for The Tri-Weekly Journal Alone.
Only EIGHT (8) DAYS remain in which to accept this wonderful offer.
history of the country when there I Tha U RIC IY ? I" our Subscription I
more real news of vital interest to the & IsV jLJ & O kJ IZa • kT/YlI7
public than right now. Covering the _____ m nUVv
Democratic Convention in the near i’u- “ ’ "
ture for the Tri-Weekly Journal will AMC Delay may cause you tb rtiiss this ..
be,’ in”addition to the Associated Press Vl l £» B opportunity. AU subscriptions that
and the United Press, David Lawrence, ■ have not been paid in full on March S,
Dorothy Dix and a member of The ; pAD < 1920, will be cut off. Don’t deprive v .
Journal staff who will be able to pre- * LiZiit V yourself and family of the opportunity i
sent the things that are of special in- PAn O ffISBSMHCEBi of reading the very best newspapers
terest to Southerners. mblik magazines published in the South.
The Semi-Weekly Journal, USE THIS COUPON
Atlanta, Ga.
Herewith find $1.40, for which please send me your "Big Six” Clubbing Offer for one year.
Name
P. O
R. T- D Slate ...............................................
This offer not good after March Bth
road systems, with a vast equin- r
ment of locomotives. cars and i
equipment. These include 62.759 lo
ci motives. 53,515 passenger cars.
6,000 Pullman cars. a?;d 3.299,840 I
freight r-ais cf all kinds.
On these roads in 1919 Uncle Sam j
collected a total of $5,181,000,000 in
revenue. After paying their operat
ing expenses and taxes of $4,666,0)0,-
000, there was left a net operating
income of $515,000,000. This amount
ed to 2.74 per cent of earnings on
tl;e book values of the railroads.
The receipts from freight and pas-j
Monroe Doctrine Is
Explained to Salvador
WASHINGTON, March I.—The re
quest of the I’epublic of Salvador for
an interpretation of the Monroe Doc
trine has been answered by Acting
Secretary Polk, it was: To-
day at the state department.
It is understood that the reply
pointed to the speech of President
Wilson early in 1916 before the sec
ond Pan American Scientific Congress
as a recent and authoritative exposi
tion of the doctrine.
and consumers were fixed. In quash
ing the indictments the lower court
construed the act to mean that In
the absence of allegation charging
an intent and purpose, to monopolize
trade, the statute did not make the
acts alleged a crime.
ATLANTA, GA., TUESDAY, MARCH 2, 1920.
000—the amount earned net —and the
government guaranteed to the rail
road owners was $390,000,000, which
deficit Uncle Sam made up out of
the treasury. The 1918 deficit yvas
s2ls,ooo,ooo—the total deficit for ; the
two years of government operation
amounting to $605,000,009.
The roads go bjtck to approximate
ly 648,000 stockholders, who own
them. Os these, a record of the 20
largest stockholders in 23 of the
country’s largest railroads, shows
that these few control more than half
the stock issued.
184 Passengers Are
Rescued From Ship
Driven on Rocks
HALIFAX. March,l, : r-Tl t e Leland
fine steamer Bohemian. Ijound--' for
Liverpool from Boston, with 184 pas
sengers on board, went on the rocks
forty miles east of Sambro early to
day, according to a radio from the
steamer, picked up here.
S, O. S. calls said the vessel was
held fast on a ledge and was in need
of immediate assistance. The Brit
ish steamer Maplemore and several
other ships have gone to her assist
ance. The Bohemian is of 5,544 tons.
Later messages said that tugs had
rescued the passengers and were
' bringing them to port.
EARLY DEFEAT OF I
i TREATY OF PEACE
NOW IS FORECAST
I WASHINGTON March I—An1 —An early.
, .nd unfavorable vote on ratification
. of the peace treaty was forecast in
• lite senate today when Republican :
I leaders, replying to the demands of
j the treaty's irreconcilable Republi
can opponents, reaffirmed their de- :
I cision not to accept any change of
i substance or ot’ language in the Re
: r-üblicar reservation to article ten.
Both sides concede that enough
Democratic senators to defeat rati- :
1 ication are determined to stand with
President Wilson and vote agains’
the treaty unless the article ten qual
i ification is modified. The Repul
, lican decision today was folk-wed 1..v
evidences that all lite elements '1
the senate fight would co-operate to
end debate and let the treaty issue
t go undecided into the campaign. I
Some of the leaders predicted a
final vote by Thursday, but others
though it would not come before the
‘ first of next w r eek.
I Under the agreement between the
Republican leaders and the irrecon- >
j cilables, the latter will not carry out
: the proposed program of prolonge)
i debate. They will support rhe Jte
i publican reservation program as they
i did at the last session, but will vote.;
* as they did then, against ratifica-
i tion.
j In the unyielding stand they have I
taken on article ten the administra-
i tion forces are understood to have I
I been backed up by a reaffirma
• tion of President Wilson’s decision
not to accept the Republican reserva
tion. /although it was said no for
mal communication came from the
White House, it was understood ad
j ministration senators had taken steps
| to satisfy themselves that Mr. Wil
son had not changed his mind and
that he intended to pocket the treaty I
if it were ratified with the article I
ten reservation unchanged.
U. s/SENATOR
BANKHEAD DIES
IN 78TH YEAR
j WASHINGTON, March I.—Senator!
Bankhead, of Alabama, died today.
Senator Bankhead had been ill for
. some time. He contracted a heavy
j cold and while still weak from it
ihe escorted a delegation representing
a good roads organization in which
;he was deeply interested to the
I White House and capitol. Following
i that he grew worse but a few days
lago it was stated in his office here
j he would be out again in a few
|da»Sk<'’
Senator Bankhead was in his sev-
I enty-eighth year. He was a veteran
lof the Civil war, having served four
j years in the Confederate army and
I being wounded three times.
He entered the senate in 1907. when
he was appointed to fill the vacancy ,
j caused by the death of John T. Mor
: gam He was re-elected in 1911 and
I 1918. He served in the house from
‘ the fiftieth to the fifty-ninth con
: gresses inclusive.
I The senate adjourned as a mark!
i of respect as soon as Se-nator Bank-!
I bead’s death was announced in the i
I chamber.
“Billy Sunday” of Present-Day Baseball
nni
WASHINGTON —‘Eddie Foster, hew third sacker for the Boston
Red Sox. and admitted “rounder” of a few years ago, built up a
reputation, while with the Washington club, as “The Evangelist.”
He has given weekly talks on baseball and clean living to the youth
of Virginia and Washington. He believes in doing good by force of
example, but does not intend to take up preaching as a life work.
Eddie is part owner of a flourishing truck and garage business in
Washington. Speaking of prohibition, he says, “Taking anything
away from a man never strangles the desire for it.”
21 STATESWILL
FIGHT EFFORT TO
ANNUL DRY LAW
WASHINGTON, March I.—Twenty-
I one prohibition states, represented by
| Charles E. Hughes, Republican candi
date for president in 1916, today an
nounced to the supreme court their
intention of fighting the efforts of
Rhode Island to have the eighteenth
amendment and the Volstead law en
forcing it declared invalid.
As the court met Mr. Hughes ask
ed permission to file a brief for the
dry states, amici Curiae, Which backs
the conthixfibhSxjf-the- gev’«r*r
ment that the Rhode Island suit
should be dismissed. Rhode Island,
it is understood, will oppose the ac
tion on the grounds tiiat it must be
filed by the attorney generals of the
several states and not Mr. Hughes.
, The slates represented are Dela
ware. North Carolina, Kentucky,
Louisiana, Indiana, Alabama, Maine,
Arkansas. Michigan, Florida. Oregon,
Kansas West Virginia, Nevada, Ne-
■ braska, Montana, North Dakota.
I South Dakota, Wyolning, Utah and
! Arizona.
Every effort will be ma-de to ex
j pedite the proceedings in order that
I the main points of contention may
■be determined before the annual
I summer recess of the court in June.
Main Questions
The main questions that the wet
forces will visit the court to deter
mine are:
Is the eighteenth amendment valid?
Was it legally passed by congress
and ratified by the states?
Does it infringe on states rights'?
Can it be enforced in a state that
did not ratify the amendmen't?
Can states withdraw their ratifi
cations by referendums as Ohio has
done?
Is.the Volstead law constitutional? I
Did Congress have the poW.er to fix I
the percentage of alcohol that may j
be legally’ said to make a beverage j
intpxicating or must the drink really <
be jntoxicating before its use can t
be prohibited?
iMust the government compensate j
1 the owners of the liquor for the loss !
i caused by; prohibition?. , ■.
j Does that part of the amendment
I giving congress and the several
! states concurrent power to enforce
'prohibition mean that.a state may
i allow the use of light beer and wines
I which its legislature says are not
| intoxicating? . j
Three Cases in Court
i Only three cases are now directly ;
I before the court. One is the original
bill of complaint of the state of
Rhode Island challenging the validr
ity of both the amendment and the '
Volstead law and declaring that it
cannot be enforced in Rhode Island
because the state did not ratify the i
amendment.
Charles E. Hughes is expected to
ask the court today to be allowed ;
to file a brief for several dry states, )
i attacking the position taken. by j
| Rhode Island. As a political side I
| light, Elihu Root, ranking with |
Hughes as a prominent Republican, j
will appear in one case for the wet i
forces.
Argument of the Rhode Island case j
probably will be set for next Mon
day and with it an appeal by George'
Dempsey, a Massachusetts liquor ;
dealer, who insists the Volstead law ■
l is unconstitutional because congress ■
in passing it disregarded the fact the j
amendment gives to the states eo.i <
current power to enforce prohibition.
The third case is brought by’ Ch'o ,
| dry forces, who seek to have the ■
i court declare that legislative ratifi- ;
I cations of the amendment can not l.e
withdrawn, even if the people de-
- elded against national prohibition by |
a referendum. This has been nd- !
vaneed for argument early next week. !
Department of justice attorneys I
here are watching with keen interest i
the move to pass a law in New Jersey
legalizing the sale of 3.5 per cent j
beer despite the fact that the Vol
stead law fixes the maximum at one I
half per cent. They’ express the opin j
ion that if the bill is passed it will :
have little immediate effect as legal j
steps will be taken at once by’ the I
government to enjoin its operation |
until the supreme court determines j
its validity. Present plans are for
! federal agents tc make arrests as’
soon as the first sales are made un- |
der the proposed New Jersey law. I
! These probably will be made test >
I cases to be carried to the supreme |
I court.
I The wet forces sought to advance !
l an appeal from a Kentucky federal
court decision holding constitutional
prohibitions valid. The Y suit wa
brought by the Kentucky Distilling
and Warehouse company.
: WAYCROSS DAILY
JOURNAL-HERALD
I OUT FOR HOOVER
i
WAYCROSS, Ga., March I.—ln
( dorsing Herbert Hoover for Demo
cratic nominee and condemning the
state Democratic sub-committee for
its action in refusing to place Hoov
er’s name on the ballots, The Journal-
Herald today’ .says, editorially, in
.part:
“The thing- that the Democratia
party needs to win with this year Is
a business num with ’pep,’ and not
too. much patience with .established
party r’uleu lifid' wdrr.but theories of
what it takes to constitute a Demo
crat. In advocating the nomination
! of Hoover by the Democrats. The
I Journal-Herald will admit that tliis
i is one time when the paper may be
I rightfully accused of hopping on the
[bandwagon, because' Hoover is not
our personal choice. We prefer Gov
ernor Cox, of Ohio, or Senator Smith,
of Georgia, but inasmuch as the man
and not the party will be the band
; wagon this year, we are willing to
| forego our personal choice and sup
' port the man who will do the par‘y
! the greatest good, and there is little
i doubt at the present time about
I Herbert Hoover being that man. ’
“Judge Flynt and his sub-commit
: tc- say that Hoover's name cannot
I go on the preferential ticket in Geor
j gia because he is not -a Democrat.
I There is not a man in Georgia who
: knows Mr. Flynt who does not know
i that the sub-committee is not. doing
I a thing but playing politics. It is
; nore of Jim Flynt’s business if the
i Democrats o,f Georgia want Hoover
;as their candidate, regardless of
, whether he be Democrat, Republican
j or Progressive. They have the right
and should have the privilege of ex
! pressing their wishes, and if the sub
committee fails to, give them tins
I privilege they will write the name
| of Hoover on the ticket, and Hoover
j delegates will be seated in the con
; vention if he is the choice of Georgia
; Democrats.
“Hoover voted for Wilson in 1916,
I ard has been a consistent supporter
of the Wilson administration. We
think that this makes him a Demo
crat at t|ie present time. This pa
per knows, and the world knows, that
Herbert Hoover is a business man
who does things and does them right,
and this is just the kind of k man
that the business mer-, the farmers
i and the laboring men want for presi
! dent. We believe that Herbert Hoov
er is just such a man.”
Wealthy Cotton Buyer
Mysteriously Missing
From Social Circle, Ga.
Mystery- surrounds the disappear
; ance of (?. A. Banks, a wealthy’ cot
i ton buyer oi Social Circle, Ga., who
I was last seen in Atlanta Saturday
j afternoon soon after he had received
i a large sum of money from a local,
J bank. The police Sunday’ made, a
[ fruitless search of the city. All hos-
• I.itals were rearched, but no jone an
! .severing the description of Mr. Banks
! was found.
■ In the conduct of his business,
Mr. Banks conies to Atlanta daily,
! returning to Social Circle every evc
i rung. He left home Saturday morn
' Ing as usual, according to his wife,
with the intention of returning home
[ early Saturday afternoon.
: In communicating with the police
> Sunday. Mrs. Banks stated that she
feared her husband had met with foul
play* /soon after, he received some
j money from one of the banks. He
!is sixty years old, and one of the
(leading citizens of Social Circle. His
! daughter. Miss Anne Sue Banks, Is
;a student Agnes Scott college.
Saves $15.00 On a Suit
THOUSAND of men are now paying about
the same price for made-to-measure suits
I as they did four years ago, according to
I Mr. James D. Bell, the prominent clothing
i manufacturer ot Chicago. These men, how
| ever, are buying from a new source. They
! are ordering their clothes direct from the
i laauni'aeturers at actual c:.-s’t with only one
1 small profit added. Headers, of this paper
I interested in cutting their clothing costs
, should write the Beil Tailors, Adams at
' Green streets. Chicago, Illinois, and ask for
, a copy r of their new Fashion Book, No. 758.
' With a -large assortment of cloth samples
•in many weaves and pattern-. An illus
' tration cf the unusual values offered by this
j firm is a guaranteed all wool cassimere in
I ye r y attractive pattern at only $25.00 for
I three-piece, made-to-measure suit—the
i quality generally sold at $37.50 io $40.00.
They offer cv—,i larger savings on higher
priced suits. This company, the largest in
the world.uis thoroughly reliable and will
gladly scnfi you f-oe of all cost their big
new Fashion Book with simple instructions
for taking measures. Write them today.
Scents a eopv.
$1.25 A TCAIt.
WILSON SIGNS BILL
RETURNING BOJDS TO
(PRIVATE OWNERSHIP
| ’ ‘ • • - -
■Director Hines Says Both
Public and Owners Have
Been Benefited by Period
of Government Control
1 WASHINGTON, Feb. 28.—Presi-
I dent Wilson sighed the railroad, bill
. Saturday night, on the eve of the
| return of the roads to their owners
and ■to private operation. L .
In proclamation issued •at the
time the bill was signed, Mr. Wilson
vested in Walker D. Hinds, difectoi
general of railroads, virtually- ail
powers conferred upon' the executive
by the bill. Mr. Hines will also con-
I tinue to exercise the duties of direc-,
| tor general which continues beyond
I the return of the roads to private
I control at midnight tomoirow night.
' The White House also made’ pub-,.
lio the text of the president’s reply
’ to a recent request of representa
tives of the railroad brotherhoods
that he appoint a commission com
posed equally of employers and em
ployes’ delegates to consider wage
demands made by the brotherhoods.
It deals wholly with the wage de
mand settlement and docs
not refer directly to the memorial
later presented *by the brotherhood
heads, asking that .he veto the rail
road bill.
Announcement of the signing of
the bill came after officials had be
come convinced Mr. tVilson did not
intend to act Saturday, although they
were certain he would' not permit
the measure to law by the
| expiration of the ten-day limit ai
' lowed for presidential approval or
, veto of an act of congress. There
■ were indications the president’s ac
| tion on the bill was delayed pending
: his completion of his reply to the
■ brotherhood heads.
President Wilson signed the act
after he had carefully investigated
its provisions, and obtained the ex
pert opinions of Attorney General
Palmer and Rail Director Hines as
to its constitutionality and work
ability. In signing it, he opposed
the railroad unions and farni or
ganizations associated with the
Fanners’ National Council, which re-
I quested hint to veto it on the ground
that it would result in delaying ae
-1 tion on wage demands, in higher
! railroad rates, and a consequent hl
- crease in living costs. Other groups
of farmers, however, urged him ■1 c
sign it. r
AL. LLo.I a. m., the- ‘government
handed over to their owners 140,000
miles of main line railroad and ter
minals and equipment, valued at ap
proximately $20,000,000,000. over
which its direct authority has been
extended since December 2s, 1917.
The properties were .returned, leav
ing the government with a deficit <>l
$715,500/100 for its twenty-six
months of operation. But while the
'deficit appeared large, “federal, op
eration has cost the public consid
erably less under the conditions,
through rates and taxes, than would
have been the case under private
control,” Director General Hines de
clared in a resume of government
management.
WASHINGTON, March I.—Pail
roads of the country, operating for.
the first time ih twenty-six months
under their own management, were
formally notified today, by the inter
state commerce commission of , the
‘ne'z powers delegated to that body
and of the rights and privileges ac
corded the carriers by the new rail
road law.
The commission’s announcement
explained that provisions of the law
against rate reductions prior to Sep
tember 1 without the commission’s ■
approval were mandatory, but that
changes in rate regulations, classi
fications and practices In yhich a
decision had been entered by the
commission, would bo effective on
the date designated. All changes in
rates and classifications effective
prior to today will stand, the state
ment said.
The United States railroad admin
istration. the governmental agency
which for more than two years has
controlled the opcratoon ot the :nh :
tion’s railroad systems, today, _wpn\
out of existence. With its passing, at
midnight the 230 lines that wfefe
merged into what was practically
one gigantic system again came un
der control of private interests, free
to operate in competition as of Ohl.
The transfer from government to
private- control was without incident
and there was nothing to indicate
to the trameling public, that there
has been a change.
Hines Alone Remains
Os the staff of directors and execu
tives who controlled the roads during
government operation Director Gen
eral Hines alone remains. He will
have no authority in directing the
operation of the systems and remains
simply to clear up matters left pend
ing when the government relinquish
ed control. These include thousands
of claims, contracts and grievances’
yet to be settled and among which
are eighty-three compensation con-,
tracts with various roads which, sti H
are the subject of negotiations.
Under the so-called railroad re
organization bill, which governed the
return of the transportation system*-
to private ownership, but little juri"-
diction is retained by the govern
ment. Under its terms the inter
state commerce commission is given
greater’ power to control rates and
compulsory arbitration of labor dis
putes is required. The government
also retains a certain amount of con
trol over their bond issues, but at
the same time insures a fixed per
centage of profit and makes it pos
sible for the corporations to secure
loans from a federal fund set aside
for that purpose.
Specifically, the bill authorizes tlw
president to settle all questions, in- '
eluding compensation, and appro
priates $200,000,000 for this purpose.
. Provides Standard Batura
Provides guarantee of “standard
return” to carriers for a period of t
six months after the termination of
federal control.
Creates a “revolving fund” of S3OO.- s
000,000 for making new loans to car
riers.
Creates a railroad labor board and
other machinery for the amlcabl*
settlement of disputes between em
ployers and employes.
Directs the interstate commerce
commission to fix rates will
provide for two years 5 1-2 per*cent
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