The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1918-01-05
ADMINISTRATION BILL PROVIDES
COMPENSATION FOR TIE ROADS

~ o. y U "
WASlIN;rnN. Ian. 4.-Th" admin
l:;lrutinn bill tor government nr"rati,1l
al r;IiiruatlS Introduced ia congress to-
,iuv rruf"is..s t!lli tn" government $iiai!
pay comI'susu;jnu ri ;tn annual r;!;' ~
Near ~ i''SSIh." II th" net "r'";'ilnE
tncrni" FOR tn" thrr" years ended June
- 1917. The bill also would app:orrI-
axe $jru.pu". UrD To- he used HS Il ''r"N"lN-
iuG fund" with thu "NctS:r earnings or
the roads for the operation "f the Jaw
Tho railroad bill is entitled u bill to
provide for up.ratinu III the trans!mrl;.-
ton system Will. Under fedora! COLI
troll. Tor the just compensation ui thrlr
owners and for other purposes.
Section | provides that the President
is authorized IL Ii;rru with and Huitirn-
tee 10 the roads diving the federal '"n-
troll. they shall receive rs just c"mr"N-
Sntiun. an income at IN" annual RAJ"
equivalent Us nearly as may be L. tia"
roads average net railway operating IN
come for the three wears ending Jun" 81.
1917. THIS. tho bill officially calls the
standard return. This section provides
tina, the NET railway operating inc"nI" IS
t. b. computed from returns 10 the. lu-
tvrniatr Commences Commission, cNclud-
ing debts and credits, arriving from tn"
accounts which are called in the month";
IL Interstate commerce. returns leased
road r"nIs and miscellaneous rents.
No federal taxes in excess OF taxes
assessed during tn" year Guiding June ~
1877, are to be charged against The rev.
enue il computing tho standard return
Any not railway operating Income III
excess Of tho standard return is TO b.
the property of the United States. The
amount of the standard return uccru-
ing during the three year period Is to Dc
determined by the Interstate Commerce
Commission whose certificate as 10 the
amount ia to be taken as final and con-
elusive for the purpose Of the agreement
and guaranty. During the federal cou-
troll adequate depreciation and mainte-
nance or the properties OF the roads
will BE- included Us a part OF the operat-
ing expenses or provided through q re-
serve fund: in accordance with priuc.-
pies and rules which the President Will
determine.
Section two provides that II no such
agreement is made with q road. the
President may nevertheless pay. OF
cause TO he paid to any railroad while
under federal control. not exceeding 80
percent OF the standard return. Under
this section. the legal rights Of the rail-
road for prosecution Of its claim for tie
balance before the court OF claims Is
provided for and any amount found due
above the amount that had been paid
will bear interest at percent ?. rear
and any excess amount paid by the gov
eminent will be recoverable by the gov
ernment with six percent interest.
Section three provides TINT any claim
Fo nct tim which IS rot adj
justed under the terms provided In sec
ton l will be submitted to u board or
three auditors appointed by tho Inter
state Commerce Commission. whose
members and official force will be detail
cd for that service without any addition
al compensation. These auditors Will
give Il full hearing TO the road and to the
government and will report TO the
President the amount due the road as
lust compensation. a sum not exceed
ing the amount so reported may DC
agreed upon by the President and the
road. Failing. this agreement. either
the federal government or tho road may
file q petition in the court Of claims for
final ascertatnment Of the amount of
lust compensation Of any federal con-
iroled road not making returns TO tho
Interstate Commerce Commission will
nc ucltI 49, S~SS- S~~~'SS ''~N--
provisions.
Section four provides that tho return
Of any carrier Will be increased by ar
amount reckoned at q rata per cent 10
be fixed by the President upon the cost
of any additions and improvements
made while under federal control by tho
carrier from Its own capital or surplus.
and by nm amount equal TO tho rate &C
cruing to the government upon any ad-
vances made to the road for the cost
OF the additions and improvements.
Section five prohibits any carrier,
while under federal control without tho
Presidents prior approval from declar-
ing or paying any dividends In excess
OF its regular rate during tho three
years ending June 80. 1917. This sec
ton stipulates however that tho rail-
roads that have no regular dividends or
no dividends during that period may.
with the Presidents prior approval. pay
dividends at whatever rate the President
may determine
Section six appropriates s5oo,ooo.ooo
which, together with any funds avail
able from any excess earnings OF the
railroads, may be used by the President
"as n revolving fund" to pay expenses
Of the federal control on any deficit OIL
a railroad below the standard return
and 10 provide terminals. Improvements.
engines, rolling stock and other neces>
sary equipments. These terminals. Inn
orovements and equipment are to DO
used and accounted for IS tho President
may direct and TO DC disposed Oh rs
congress may hereafter provide. The
President may also order any ROAD 10
make any additions and improvements.
He may from this revolving fund adj
Ill (f
expense Of the additions and Improves
nent3 30 ordered and constructed by tho
road or by the government These ad-
yances are to be charged against the
road and to bear interest at such rate
and be- payable on such terms as tho
President may determine so that the
United States may be fully reimburse"
for any sums advanced.
Anv loss claimed to accrue to any
road by reason Of any OF the additions
or improvements may bo determined ny
an agreement between tho president and
the road. Failing this agreement. tho
amount OF the loss would be aSccrtained
under the terms provided In section a.
From the revolving fund The president
may cxpcnd whatever amount he may
deem necessary or desirable Tor pur-
chase. construction or utilization ana OPP
Grafton Of boats. ha.gcs. tugs and other
transportation facilities on tho inland
and coastwise waters. and may in IN"
ACQUISITION and operation OF these IA
cilitics. create or employ such "g"nci"s
and enter into such contracts and agree
ncnts as he shall deem 10 he Ill the
public interest.
To provide funds for maturing "hilEa-
lions, nr for other legal and ordinary *
I
in recelvcrshlp. may. during tnr Federal
control period issue such b"!nls. notes.
ccuipru,ut trust certificates. SturkS and
othcr forms Of securities. secured or uE-
secured by mortgage .ns tn president
may opprovc az consistent with III" p'ii-
lie interest.
ri..L.-. h.. In-..Mi.