GIVES SUMMARY ESCH CUMMINS RAILROAD BILL Interstate Commerce la Is Given Full FuJI Control of f Properties CEy B Ey The Harold Haro H. H Smoot Co Oo Wire New r York Feb 21 E. E. E F. F Hutton company has Issued the following summary summary sum sumo mary of or the Esch Cummins Mil JIll Contrary to newspaper reports tho the Esch Cummins bill does not guarantee earnings of any road The interstate commerce commission is given authority author author- ity iy to make such cruch sch rates Ites as lS will wIn give ivo a a fair return upon the aggregate value val val- ue uc of railway property The Tho commission commission commis commis- sion can cnn decide the aggregate value at its It discretion and ad change chang Its Is decision at an any time During two years beginning March Much 1 1 1 1020 1920 20 tho commission shan take tae a 38 aa such fair return a sum su equal to 5 per cent aggregate value but may my at it Its discretion add ther thereto to a sum not notto to exceed half of or 1 per cent of ot such a aggregate Se gat 0 value chargeable to capi capt- tal tl account All AU Al over O 6 per cent of ot earnings to be divided one half to the government and on one half one half to the reserve funds of r tho railroads Tho The money mone which goes to the tho government Is 15 placed in a a contingent contingent con con- fund to be used for tor tho the b purchase purchase pur pur- chase chae of equipment and ad for loans t to to roads see sections and nd d 4 pages 83 to 97 97 Three Three- funds will wn bo be established established under the new now law 1 A transition fund of ot placed at the disposal of ot the to President for expenses in winding up government govern govern- ment ownership 2 R Revolving fund of ot placed at the tho disposal of or tho the Interstate commerce commore commission from which loans can cac cn be made to tho the railroads for five vo years on a S C I per cent basis bis Both of ot these amounts are aro provided for forout forout or out of or tho the treasury under th the the- act 3 A contingent ent fund to tobe be mae made tip up from earnings s from the railroads on oa OI their aggregate value over 5 EJ per cent Has DI Labor Board Dond DondA A new new bod body Is called Into Into existence the the the- labor board This Is to consist of or nine nino members All appointed by by tho the President by b and with the advice of or the Senate and is to consist of ot three representatives of labor IMor three representatives of or mana management and three representatives of ot the public Tho terms under under- which this new board boad is created d Indicates a weak compromise o n n these pro provisions provisions provi provi- The measures which were approved by tho the Senate committee commit commit- tee tc and opposed by the tho House commit commit- tee The Tho labor board has little lite real po cr power rea Under the Esch bill bi the tho In Interstate Interstate interstate In- In commerce commission will have havo much wider powers than tan It i has ever previously possessed Its Is membership membership mem mem- Is Ig Increased from tom nine nino to eleven cD j members member The T commission is I given Iven complete control over ocr tho the issuance of securities beginning days after the act at is passed The only securities not requiring re- re quiring tho the special permission of or tho thoi thet 1 commission to make maks rak issuance of or se- se se legal are notes running for two years year total not to exceed 5 per pen perl I cent of or total securities outstanding The commission Is given S1 extensive t powers to regulate the distribution of or cars equipment and motor po power er At At any time deemed necessary In the Judg Judgment ment nt of or the commission frel freight ht may maybe maybe maybo be bo rerouted and use usa of ot terminals shared shard between roads I Will 11 Consolidate I The To commission is directed to adopt a plan to consolidate roads into a n. limited lm- lm urn lim lied ie number of ot systems In I the division division divi divi- sion zion of ot such systems under such plan competition shall be preserved as n ful fully fully ful- ful ull ul- ul l ly as possibly and wherever practicable I tho the existing routes and channels of ot trado and commerce shall shaH be main maui trao tamed tined Subject to the foregoing re requirements re- re the tho several systems shall shah bo be so arranged that cost of or transportation tion ton a aa as between competitive systems as related to the value of or the tho properties through which the service ser lc Is rendered shall be b the same as ns far as practicable so that this tills system can employ uniform uniform uniform uni uni- form rates In the movement of competitive com corn traffic trac and under efficient management earns substantially the same rate ratu of return upon tho value of at tho ive railway properties respective Lines an and ron roads s which construct new lines considered by the tile Interstate te commerce commerce com com- merce commission to bo hi bc necessary to the public service are allowed to keep all al their earnings eam s on such lines Co for two years without dividing up the cost with wiLls wih tho the government Secure Permission No extensions or abandonment of ef t lines can be made mado ninety days alter after the enactment of ot the law by the tho roods roads rols without thi tho permission of or the Interstate interstate inter Inter- state commerce commission comIssIon Pending the tho announcement of or tho the general enral consolidation plan of ot the In Interstate Interstate interstate in- in commerce commission roads roas are arc allowed to bu buy the control of ot other roads but must continue to maintain the separate corporate entity of or them Law Iw aw against pooling consold consolidation Uon etc etc which conflict with wih new laws are aro repealed Drastic regulations ar are put Into tho the interstate commerce commission lon law Jaw prohibiting officers and companies from watering stock and ad prohibiting officers from Crom sharing in tho the banking profits from th thu salo sale of their securities securities ties or from making similar profits from the stock of or subsidiary companies companies