The Barre daily times. (Barre, Vt.) 1897-1959, 1916-11-24
SINGLE CASE AS TEST.
Government and Railroads Agree on
Plans in Adamson Suit.

Washington, ID. c., Nov. 24.-Confer
ences between Attorney General Gregory
and counsel for important railway sys
tens of the country, looking to the ex
lpedition to the supreme court of one oi
the suits attacking the consttutionality
of the Adamson act, virtually were con
emded yesterday and the question OF
which shall be made the test case was
placed in the hands of department OF
justice attorneys and legal representa-
tives of the railroads now in Kansas
City.
| 1t was said that in the conferences
here the form Of the agreement between
the attorney general and the railroad
| lawyers was in substance decided upon
and that the only matter to be deter
mined in Kansas City, is whether the
suit of the Missouri. Oklahoma & Gulf
railroad decided Wednesday against the
government, or that of the Santa Fe, set
for hearing to-day, shall be made the
test case. Terms Of the tentative under
standing We're telegraphed by the depart
ment to G. C. Todd, assistant to the at
torney general in charge of antitrust
prosecutions, now aiding in handling the
Kansas City cases, and by counsel for the
carriers to Walker ID. Hines, counsel for
the Santa Fe.
In substance the plan provides that
both the department and the railroads
agree in every way TO expedite and ae-
lively press the case TO be determined
upon to a final decision in the supreme
court, and that during the pendency OF
this suit the government will not begin
any prosecutions OF carriers for failure
to apply the law During its tendency
the carriers will institute no more suits,
and at its determination both parties to
the agreement will be bound by the SUI
preme court decision, the carriers agree
ing not to bring further action if the
law is found constitutional and to stop
all others. Neither party is bound by
the agreement to refrain from efforts to
secure legislation which might change
the Adamson act.
The Joint congressional committee in.
the subject of transportation
began its work in earnest Yesterday,
with A. p. Thorn, counsel for the railway
executives advisory committee, speaking
for two hours and half on railroad
problems of the day He continued to.
lay and may not end his argument be-
fore the end of the week.
Mr.. Thorn went into many phases of
the railroad conditions but dweit par
tieularly on their need for credit if they
are to extend and keep transportation
facilities up to the standard the public |
demands He said that in the last 10 |
years the percentage Of railroad secur-
ties constituting liens against the prop |
srty had increased from about 40 per |
'ent to about 65 per cent of the total |
securities and predicted that fnanciers |
who would come before the committee
ater would testify that the danger line
lad been reached. The investing public,
Mr.. Thorn said. demanded per cent |
eturn and a 3 pen cent surplus fund
early to provide against lean years, and
uch return is almost impossible ON rail
Dad stocks under present conditions.
IF government ownership OF railroads
omes i'm this country" said Mr.. Thorn,
il will be because of the need of credit 4
which private owners cannot supply"
Ie added that in his opinion one way to
educe the cost of living is to give the
ailroads capital to open up new terri
ory,
"The decision of the American people
as gone forth said the witness in con
lusion, that the railroads must stay
ut of politics. They should see to it
hat the side that wants to attack the
ailroads says out OF politics too.
lead with you for q non political bust.
ess regulation of railroads that would .
i've every guarantee possible that ques /
ons shall be decided on principles of c
usiness righteousness and not on prin- I
piles of political expediency."