Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-12-28

earnings OF all roads for the three"years
ending last June 80. Figures compiled by
the bureau Of railway economies. an
agency Of the companies, show net oper--
ating income for the year ending June
80, 1915. as s6s5, s31. sci; for 1916, $1.0o5, 1929
and for 1917 81. o4. 100, $50. -
Congress might establish, this basis OF
i compensation. virtually the lease rate for
the period Of government operation. but 1t
could not compel any road to accept the
terms, and a mpan would have re-
course to the courts II it considered the
rate too low. This course is not looked
for from many roads, however.
Underthe bill which oficials have drawn
for presentation to Congress it would be
provided that earnings exceeding this ba-
sis would revert to the government for
general expenditure or as a special fund
for railroad improvements. Dividend
payments would be subject to supervision
and approval Of the Interstate Commerce
Commission.
Roads would make their own improve
ments, under the plan, and provide 70.
their W bond issues, but both would
be under government supervision. The
size and interest rate on securities issues
would be subject to the Interstate Com
merce Commission's approval, and the
rate by law would be limited 60 a'mini-
mum of 4 per cent. and a maximum O:
s. per cent. The President would be au-
thorlzed to buy on government account
any or all future railroad bond issues.
most of which would be to provide addi-
uonal equipment or improvements. and
thus the necessary legal means would be
provided for government financing Of i'm
provements. Such a plan would auto
m~atically give the government power to
regulate improvements and to prevent ex-
~traordinary and unnecessary expenditures
for such purposes.
on the other hand. it is understood to b.
Mr.. McAdoo's intention TO resort to con-
struction of new lines or additional ira c,,e
OF trunk lines If this proves desirable t,
relieve congestion. The tons
policies along this line are expected to
be vigorous III extending lines whereve,
needed for efficient prosecution of the eco.
nomic forces behind the war.
Reports were circulated today that the
Interstate Commerce Commission Nigh
decide to postpone indefinitely decision OF
the 10 per cent. rate increase and other
independent rate questions unit. it can be
ascertained whether government operation
Will result IN material towering of oper-
alton costs through elimination of com.
petitive waste.
Pooling Order First
Order No. /, to be issued shortly Nv d.
4 rector Epnnro1 nf Io;I.zzl -,
provide for the pooling Of all traffic and
facilities. the common use Of terminals.
tracks and equipment, the hauling of
irelght by the shortest route regardless of
billing or routing, and the retention OF
all present officers and employees of rail-
roads.
one effect Of this order will be to give
a number of railroads terminal faci,i.
Ties which they do noe now have in HI,
cities, The Baltimore & Ohio probab1,
Will enter New York City at the Pennsvl-
yania station.
Brotherhood Heads Confer
Heads Of the four railroad b~rotherhoods
conferred with President Wilson for an
hour ana a half late today discussing IN
uetdiI the part the employees will play IN.
ger government operation. A. e. Garre,.
son. OF the Conductors, said afterwar ds
mat wage Increases were not mentioned
Mr. Garretson added that the brotb..-
moods were behind the government. onaro
ton plan and tina the President ~.
known it for two weeks.
overshadow War Activities
Preliminaries for actual tax..e v.r -.
the railroads by the government at noon
'onioFrow moved forward swiftly TODAY
ana o~vershadowed all other war activities
il. the capital.
although approved by the great mn
1ority OF railroad men. there was soma
disposition toward criticism In Congress
principally on the ground that the gov.
eminent proposed to allow the raiIrn.ds
100 much; but there was no indication
that the Presidents plan would be s..
riously opposed.
Many members Of the House and
senate predicted that the stem was
ohly the beginning of government on.
e'atioh and control, and thai it would
soon extend to telegraph and teIe-
phone lines. ~ '1e
Director General McAdoo snar+ ,ho
oay III intensive study of prob,ap,y
"Hlch must be solved at the outsa,
president Wilson conferred with w.
heaos OF the four great railroad
nr"therhoods 1t appeared
that the latest demands for increas es -
pay would be handled by a commune
OF managers to be appointed by NJ
McAdoo. WI
me criticism in Congress wa
heard from the Republican side Son
ator cummins, in a statement a.
ciarlng his doubt that the Pres;dont
ilad authority, thought it womb ba,,a
peen wiser to wait for legislation Nv.
Congress. ny
Senator Weeks. also n Renub,,o.n
oeciared the President had annie ON,
tnority and added that while il W..
OF no eHec to criticize the Question
might well arise as TO whether M
selection Of Secretary McAdoo was =
good one. ""' 1t
Acting Republican Leader Ci1lo..o
OF the House also assailed the soloc-
ton Of McAdoo.