Evening Republican, Volume 23, Number 53, Rensselaer, Jasper County, 1 March 1920 — FEDERAL HAND LIFTED AT 12:01 [ARTICLE]

FEDERAL HAND LIFTED AT 12:01

$20,000,000,000 PROPERTIES ARE AGAIN UNDER PRIVATE OWNERSHIP. Washington, Feb. 29.—America’s rail transportation systems operated as one great public utility since December 28, 1917, again will be divided among their 230 respective corporate owners when the government releases control at midnight. Director General Hines, as the agent of the president -will hand over the properties and equipment, valued at approximately $20,000,000,000 to their old direction, free, except for the jurisdiction retained by the government in the new railroad reorganization 'bill, which document President Wilson Signed Saturday. While ail arrangement for formal restoration of the carriers to their owners were completed yesterday by M. Hines instructions went out today to operating representatives of the railroad administration informing them that they would “report to the proper officials of the corporations which resume control at 12:01 a. m„ March. 1.” Of the gigantis organization created by former Director General McAdoo as a war time expedient, only a small part will remain. Regional officials, federal managers, and treasurers and many high officials comprising the director general’s staff, wil cease to function as such at the designated hour, some of these have gone back to their former places as officials of the corporations while others have entered into new

lines of endeavor. Mr. Hines will continue in his present capacity until about May 1. Although without any railroads to direct, he still faces the settlement of literally thousands of claims, contracts and grievances. Only 147 of the 230 compensation contracts with the corporations actually were signed during government control and the remainder will continue’ to b, subject of negotiations. Damage claims have arisen of which many still are pending. Labor has several thousand cases before the government wage boards and Mr. Hines has assured the labor spokesmen these will be concluded. Some will require the payment of retroactive wages if decided in favor of the workers, and others will mean the establishment of interpretation of agreements which labor, of course will refuse to have altered ’by the corporations. Many affect general labor policies and represent vitally important questions from the labor view. The reply given by President Wilson to labor’s objections to the reorganization bill will be considered tomorrow by the railroad union chiefs. All union executives who are here will be called into conference for the purpose of agreeing on a public expression of railroad labor’s attitude. There was no indication tonight as to sentiment among the leaders who had read the president’s statement in answer to their request that he withhold his approval from the bill.