The Washington times., 1918-02-11

Nobody knows Whether the present
organizations are to be preserved or
destroyed, and without u distinct
understanding upon these points, 1t
Is impossible to secure satisfactory
results"
! Under the basis OF compensation IN
the bill. the roptr says. the Govern
ment guarantees the roads $780,
oOO, 900.
I'm my Judgment this sum is, at
least, $4,000. 900 more than fair"
says the Iowa Senator.
1t Is that much more than the sum
any well informed, unprejudiced per-
son can reach as the value OF the
use Of the properties involved, he de-
clGred.
/ people Net Considered.-
with due respect to the President
and to the distinguished men who
composed the bill, one cannot escape
the impression" says the report, "that
| in proposing to offer to the railroads
this immense sum OF money those who
are responsible for tie measure have
been thinking only OF the men who
are to receive the money, and that
| their effect upon the millions who are
, to pay the money has been, it Is feared,
entirely absent in their consideration
Of the question.
"In the proclamation, statement,
message and hearing it was said over
And over again that we must be gen.
erous and liberal handed in order to
allay the fears OF holders OF railwSy
securities and to fortify and strength
en- the financial structures OF which
these securities are q part.
els Il not pertinent to inquire with
whose money we are to be generous
and liberal handed, and whose savings
are 60 be drawn upon for the gratuity
bestowed upon the railFoads2 We
pers or from the people generally in
the way OF taxes"
Too Much Income Guaranteed.
He asserts that the Government Is
guaranteeing this great sum in the
face OF the fact thar the railroads are
relieved of all hazards OF the war
and fuctuation OF business.
The guaranteed return, he points
out IS SIS per cent per year upon the
par value OF all the capital stock of
all the railroads OF the country.
THE mere statement OF the pro-
posal," he said. puts IL beyond de-
fense. 1t Is known to all students,
or even observers OF the subject, that
the greater part OF the capital stock
OF the railway corporations repre-
sents no value whatever; that is, the
corporations did not receive any
thing for it and their properties do
not represent the investment OF one
half its par value"
In view Of the fact that the Govern
ment Is to maintain these properties
and TO return them, IL they ever are re-
turned" IN as good condition as when
they were taken, he said, II is "incredi-
BILE that the Government guarantee them
l.. = =
per cent"
Cannot Tax People.
1T cannot be possible" he said. that
Congress will tax the people OF this
country, either through rates or other
impositions, to pay these returns en-
capital stock. most OF which was
issued in defiance OF both law and
morals"
He advocated that surplus earnings
OF the road be paid into the revclv-
ing fund established by the bill.
The lime has come" he said, ito
establish permanently the principle
that the public shall not be required
TO pay interest upon that part Of the I
value OF railway property which Is
constructed or acquired through the
surplus earnings after outside or in |
dependent capital is fully compen-
SaNeO.
''The bill fails TO make provision f,
for this essential feature OF account
ing between the people and the cor
porations."
should Seize Snail Roads.
Cummins declared that small roads
should be taken over when competi-
tive trunk line roads are placed under
Federal control
at IL probable that II these roaas
wero taken over the liability which
the Government sssumes would not be
materially. II At all increased, and
even IL IL is enhanced by a small (
amount, the Government can well af-
ford to take something from the exces-
sive compensation which II proposes
to guarantee the big roads, in order
TO save the little ones"
Referring to the raie-hxlnE pro-
vision, he says: while it keeps the
promise OF the ear, 1t breaks it to the
hope"
He poInte gut that the President Is /
given power 10 initiate news rates
and put them into immediate effect, |
and that a review by the Interstate
Commerce Commission can be had
opIv on COmDlafuf