The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-12-19
SENATE ORDERS
RAIL INQUIRY
Action Is TO Hasten Legisla-
tion That President
May Advocate.
CT MMINS FORCES STEP
Wilson's Power to Take Over
Roads Under Old Act Is
Questioned.
CUMMINS FORCES STEP

WASHINGTON. Dec. lS.--In the eXpec-
tation that Immediately after the holiday
recess the Presiden: will lay his railroad
plan before Congress. the Senate. on the
motion Of Senator Cummins of Iowa. to-
day ordered AN investigation into the
general railroad situation and It's bear
ing on the war with view OF expedtins
the uassagc OF any egislation that may
he required after the President has ad.
dressed Congress OF the subject.
II is not doubted that the President
will act in the meantime. Although
several OF his advisers have assured him
that he could go ahead and appoint a
railroad administrator under the act OF
August IS, 1915. some Of the ablest con-
s,ituticnal lawyers In the Senate. it was
learned to-day. questioned the right OF
the President under this law to take
entire control OF the railroad trafiic. hold.
ing that it applies only TO troops and
war materials.
This Is believed by some to have de-
tered the President from acting at once.
object Is speedy Action.
The Senate Interstate Commerce Com
mittee viii! summon At once members OF
The Interstate Commerce Commission
and of the Railroad War Board aId get
their views on what ought to bc done.
Senator Cummins said that the main OBJ
jec. was to he prepared to act speedily.
The principal point involved. he said.
concerned tho financing to he done. lie
added:
"1f We intend 70 make these lines OF
TRANSPORTATION sufficient to meet the
extraordinary emergency We must 90
something to unite their energies SO
that the various railroad managers
/ would no, feel under obligation I" the
stock and bond holders so far as the
management and operation of particular
railroads are concerned"
II became apparent to-day that y the
railroad matter Is thrown into Congress
by the President a fight Is to ensue be-
tween radicals and conservatives over
the guarantee feature Senator cum
mlus, who Is the ranking Republican
member Of the Interstate Commerce
Committee. announced that he was op-
posed to the plan.
1T would not be fair, in my opinion
he said, ITO guarantee the earnings on
the basis of 1916. which was an alb
normal year. and such plan would dc
an injustice to the weaker roads.
shall propose a plan by which the mar
ket value Of railroad securities, aver
aged over a period OF fve years or more
shall be taken as the basis for guar
antee. This would represent public
/ opinion on the value OF the railroads"
/ For . Federal Corporation.
A bill, introduced to-day By Represent
/ alive Lenroot OF Wisconsin would create
a Federal corporation to acquire rail-
road equipment and ease II to th'
roads. Tho initial capital would b'
/ 500. 900. 600, which might be increased
! TO $500. 100000 The corporation woult
! be modelled after the Panama railwa,
! and shipping corporations. with the Gov
ernraent owning all the stock. building
and leasing cars and locomotives to th'
railroads. All the corporations direc
tors would be members OF the Interstate
Commerce Commission except the Sec
re,ary OF the Treasury, It's genera
manager would be practical railroa'
/ man.
! Wherever the net income Of rail
road exceeds Z per cent. on It's invested
capltal the corporation would take u
per cent Of the excess 10 buy equipment
Senator Sterling Of South Dakota In
troduced e resolution for appointment
BY the President OF general fre!gh
traffic director to coordinate transpor
tation facilities The resolution was re
| ferred to committee without action.