The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-12-31
PAYMASTER WILL BE
VERY LIBERAL
CONTINUED from page -

with President Wilson to sixty days
delay. They will learn McAdoo's de-
cision regarding mediation at meet
ing with him scheduled for later this
week.
His order No. 1. pooling equipment
and terminals in one national system
disregarding corporate advantage, re.
mains to be worked out.
1t did not increase rolling stock.
Railway experts say trying to handle
all available freight today with pres
ent equipment is like trying to crowd
a quart into a pint bottle.
McAdoo is already turning his at
tention to financing shipments in ter
minals and equipment. Some Of the
| 800 locomotives under order in
American plants by foreign govern
rnents. will be requisitioned Some
lines will be stripped of engines and
freight cars which will be placed in
congested territory. Many passenger
coaches will be converted into freight
cars.
Additional terminal facilities and
store houses will be constructed at
tidewater ports and at the big inland
railway centers. 1t will be weeks,
probably months before the common
use of present terminals at New York,
Jersey City and Chicago can be work.
led out.
Government officials today asked
the public to be patient with federal
control New tracks, engines. freight
cars and terminals must be built Pri-
critics must be revised Recruiting
will require careful thought. To do
laway with present congestion in the
east will take weeks. McAdoo's or
ganiZation must be completed and will
need time to make it's plans.
Many steps must wait on congress
!sional sanction. This legislation is
being framed today to cover the fin
ances and intricate legal problems re-
sulting from the change to government
control.
This legislation will include:
Congressional authorization to com
pensate the railways annually on a
basis of net operating income Of the
last three years.
Appropriations for new ware houses
and other needed improvements.
Authorization for steps the govern
ment must take to unity the systems
further than McAdoo has yet gone or
to legalize some steps he may take in
the emergency.
Laws to protect the travelling and
shipping public from losses now
borne by the railways themselves.
1t is the belief of constitutional law
yers that travellers and shippers to-
day have no recourse for damages suf-
fered in railway accidents or delays.
The government. having leased the
railways they say is liable for such
damages, but under the laws of tho
country. the government cannot be
sued.
While the president will get exactly
what he wants from congress, there
will be spirited fight against his plan
for compromising the railways on q
basis of their last three years net OPP
Grating income.
A group OF senator's, led by Cum
Minis. Iowa, think the compensation
should be based on flat six per cent
of the average market value of stocks
during the last five years. Such basis,
J. they contend, would save the govern
ment millions and fairly compensate
| the railways
Aside from this point. there is no op.
position to the government railway
plan and opposition party leaders who
have studied the railway problem and
talked with McAdoo as to his plans
saw he shows "a remarkable grasp oil
the work"
McAdoo will devote himself entirely
| to the railway problem until Februar,
II. BY that time he expects to have