The Montgomery advertiser., 1905-01-05
CONTROL OF RAILROADS
sENAToR NEwLANDs INTRODUCES
 JOINT RESOLUTION.
Proposes to Unffy and Simplify the Nattonss systems and Make Fixed l, Taxation and Payment of Dfvfdends.

Washington, Jan. 4.--Senator New lands today introduced into the Senate joint resolution providing for com mission with instructions to frame and report to Congress national incorpor- ation act for the construction and con solidation of railroads employed in in- terstate commerce..
 tipn. the Senator says, has nothing to do whatever with the recent sugges- lions of Commissioner Garfield, which ne said simply covered the question of nncenses to manufacturing corpora tions engaged in interstate commerce. It's purpose. he said. Is to unify and simplify the railroad systems of the country: to place such systems under national. control. to make the taxes hxed and certain, and to make divi- dends certain so that hereafter any in crease of business may tend mathemat- ically either to a betterment of the roads or an increase in wages or a diminution in rates.
 The resolution, the Senator says, puts In concrate form certain suggestions made by him In. the examination of E.. F. Bacon, Chairman of the Executive Committee of the Interstate Commerce Law Convention. before the Interstate Commerce Committee of the Senate. and was drawn pursuant to the sugges- ton of members of that committee.
 The commission is to consist of fourteen members. one experienced in railroad traffic management to be ap- pointed by the President, one an att torney-at-iaw to be appointed by the attorney-general; two experts in trans portation; one to be appointed by the Secretary of Commerce and Labor, and the other by the Interstate Commerce Commission, five Senators and five members of the House.
 Among the provisions of the national incorporation act to be framed by the commission are:
 For the construction of interstate railroads and the construction of rail- roads engaged in interstate commerce and purchase of connecting or intersect- ing lines. the amount of bonds and stock to be Issued for construction, consoli- dation. betterment and purchase to be approved by the Interstate Commerce Commission and not to exceed the ac- tual cost of construction or the actual value of the railroads consolidated or purchased. For the classification by the railroads of all freight into gen eral andfspecial classes and the fixing Of reasonable rate for each railroad for each class of freight and of the rates of fair for passengers and for the revision by the Interstate Commerce Commission of each of the classification and rates. For the reasonable and just exercise of such power in classi- flying and regulating freights and fares by providing that such power shall be exercised in a way to yield such rail- read corporation not less than 4 per cent. per annum of the value of it's road and CFnnaPfV n i'm ad by such commission. For summary proceedings in the courts on the com plaint of railroads or private parties concerning any decision of the Inter- state Commerce Commission for the imposition of a percentage tax on the gross receipts of all such corporations in lieu of all taxes on property and stocks and bonds and in lieu of all taxes on the bonds and stock in the hands of stockholders, the property of such railroads and bonds and stock to be entirely exempt from State and local texation. For a just plan of distribute ing such taxes by the Federal Govern ment among the States in which the roads operate, the percentage to be ad- justed so as to yield in the aggregate an amount usual to the taxes new paid by the roads and to he increased grad uaily through a period of ten years until 1t reaches an aggregate of per cent. on the gross receipts of such corporations The act also shall pro- vide for the correction of existing abuses and for the prevention of re- bates. preferences and discriminations
 There is also a provision for the ere ,ation of a pension fund in the United States Treasury for employees disquali- fed by injury or age for active ser vice. by the setting aside of a per centage of the gross receipts and for arbitration or disputes between the railroads and employees