The probable maximum retirement will not exceed 50,000 employees the first year. If this maximum number does retire at the average annuity of $83.33 per month or $1,000 per year, the total of annuity payments would not exceed $50,000,000. There would then remain in the fund from all contributions made the first year approximately $40,000,000 which could be used by the board for making payments to such employees who had prior to this time been retired at age 70 or over and in this manner relieve some of the burden now assumed by the carriers in the payment of pensions under plans in effect on the individual railroads.

It is a question as to what extent, if any, the payment of pensions to aged employees actually increases operating costs.

Without a satisfactory retirement system these aged employees are often continued in the service when it would be in the interest of economical operation to retire and pay them pensions.

If it be good business judgment to replace worn-out and depreciated equipment with new and efficient equipment, it is equally in the interest of efficient and economical operation to retire those employees who have worn themselves out through long years of arduous toil in the performance of faithful service to the industry and thereby bring into the industry that proportion of younger and more active employees.

If this be done, it will not only result in benefit to the industry, but will serve to extend to these aged employees the satisfaction of a wellearned reward which has been paid for by years of their devotion to the service.

The substitute bill aims at this time and during the 4-year experience period to impose the least possible burden on the railroads and the employees. It proposes to meet current obligations in the payment of annuities to employees who shall retire under its provisions from current contributions during such experience period.

ANALYSIS OF THE BILL

Section 1 defines the terms frequently used in the bill.

Section 2 defines the purposes and objects of the bill and requires within 4 years a special report to the President and the Congress with recommendations based on experience and data then available for action to assure the adequacy and permanency of the system.

Section 3 prescribes the amounts of the annuities and the conditions and manner of payment and provides for refund of the net accumulation from the employee contributions on his death.

Section 4 provides for compulsory retirement at age 65, with specified exceptions.

Section 5 prescribes the contributions to be made by the carriers and the employees.

Section 6 authorizes taking into the retirement system existing railroad pension systems under conditions to be agreed upon between the board and the carrier.

Section 7 prescribes the optional payments which may be made by representatives of employee organizations and the conditions under which benefits are payable to such representatives.

Section 8 provides for investment of the funds in United States obligations and for the necessary appropriation.

Section 9 provides for administration of the system by a board of three members and prescribes their powers and duties.

Section 10 provides for proceedings in the courts to compel compliance and for review of questions arising in administration of the system.

Section 11 provides that no annuity or death payment shall be assigned or be subjected to any tax or legal process.

Section 12 provides a penalty for failure of a carrier to make the required payments.

Section 13 provides penalties for failure or refusal to furnish information or for making a false or fraudulent statement or claim.

Section 14 provides a saving clause in event that a part of the bill is held unconstitutional.

MAY 10 (calendar day, MAY 11), 1934.-Ordered to be printed

Mr. SHEPPARD, from the Committee on Commerce, submitted the

following

REPORT

[To accompany S. 3502]

The Committee on Commerce, to whom was referred the bill (S. 3502) authorizing the Oregon-Washington Bridge Commission to construct, maintain, and operate a toll bridge across the Columbia River at or near Astoria, Oreg., having considered the same, report favorably thereon and recommend that the bill do pass without amendment.

The bill has the approval of the Departments of War and Agriculture as will appear by the annexed communications.

WAR DEPARTMENT, May 7, 1934. Respectfully returned to the Chairman, Committee on Commerce, United States Senate.

So far as the interests committed to this Department are concerned I know of no objection to the favorable consideration of the accompanying bill S. 3502, Seventy-third Congress, second session, authorizing the Oregon-Washington Bridge Commission to construct, maintain, and operate a toll bridge across the Columbia River at or near Astoria, Oreg.

Hon. HUBERT D. STEPHENS,

HARRY H. WOODRING,
Acting Secretary of War.

DEPARTMENT OF AGRICULTURE,
Washington, D.C., May 9, 1934.

Chairman Committee on Commerce, United States Senate.

DEAR SENATOR: Receipt is acknowledged of your letter of May 2, transmitting a copy of a bill, S. 3502, with request that the Committee be furnished with such suggestions touching its merits and the propriety of its passage as the Department might deem appropriate.

This bill would create the Oregon-Washington Bridge Commission and would confer upon such commission, its successors and assigns, the authority to construct, maintain, and operate a bridge and approaches thereto across the Columbia River at or near the city of Astoria, Oreg.

The bill proposes to name the five members of the Commission and provides that any vacancy occurring in said membership shall be filled by the Secretary of the Interior. It provides also that the Commission may employ all necessary help. The Commission also would be given authority to issue bonds for the construction of the proposed bridge and to sell such bonds at a price which will not require the payment of more than 6-percent interest on the money received therefor. The Commission would be authorized to charge tolls for use of the bridge, the proceeds of such tolls to be applied in meeting the maintenance, repair, and operation costs and for paying the principal and interest on such bonds as they may mature. After all of the bonds and interest shall have been paid, or a sinking fund sufficient for such payment shall have been provided, the Commission would be directed to deliver deeds or other suitable instruments of conveyance of its interest in the bridge, that part thereof within Oregon to the State of Oregon or any municipality or agency thereof which may accept the same, and that part within Washington to the State of Washington, or to any municipality or agency thereof which will accept it, subject to the condition that the bridge thereafter shall be maintained and operated free of tolls. If the States of Oregon and Washington, or municipalities or agencies thereof, should not accept the bridge, the Commission would be authorized to continue to own and operate it as a toll bridge until such time as such States or their municipalities or agencies may be authorized to accept the bridge and shall actually accept same. The proposed bridge would not be directly on the systems of Federal-aid highways approved for the States of Oregon and Washington but would serve as a cross-connection between two routes on said highway systems. The Department, however, will interpose no objection to the bill since it provides a method for conveying the bridge to public ownership to be maintained and operated free of tolls as soon as the cost of its construction shall have been amortized by tolls which may be collected thereon.

Sincerely yours,

R. G. TUGWELL, Acting Secretary.