Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1918-01-05
new RAIL BILL
FIXES PAY TO
THE OWNERS
Stockholders to Receive Conn.,
pensation at the Rate of the
Average Net Earnings for
Last Three Years.

Washington, Jan. 4.-The admins
tration bill for government operation
OF railroads proposes that the govern
Ttnt shall pay compensation at an an
hual rate as near as possible to the net
operating income for the three years
ended June 80, 1917.
The bill also would appropriate
$500,000,000 to be used as revolving
iund" with the excess earnings of the
roads for the operation of the law.
The bill is entitled "A Bill to Pro-
vide for Operation of Transportation
Systems While Under Federal Con-
troll, for the Just Compensation Of
Their Owners and for Other Put
poses"
While the president in his address
laid stress on the importance of prop
efiy preserving the properties for
their return, the administration bill
specifically provides that government
control shall obtain throughout the
war ana until congress shall there
after order otherwise"
Many government officials and rail
road men made no concealment OF
heir belief that the railways never
would return to private hands.
Just Compensation.
Section / provides that the presi
dent is authorized to agree with and
guarantee to the roads that during
the federal control they shall receive
as Just compensation an income at an
annual rate equivalent as nearly as
may be to the roads average net rail-
way operating income for the three
years ending June so, 1917. This the
bill officially calls the standard re-
turn. This section provides that the
net railway operating income is to be,
computed from returns to the Inter
state Commerce commission, exclud-
ing debts and credits, arriving from
the accounts which are called in the
monthly interstate commerce returns,
@leased road rents and miseellane-
uus rents
No Excess Taxes.
No federal taxes in excess of taxes
assessed during the year ended June
50, 1917, are to be charged against
the revenue in computing the standard
return. Any net railway operating
income in excess of the standard re-
turn is to be the property of the
United States. The amount of the
standard return accruing during the
three-year period is TO be determined
by the Interstate Commerce commis-
sion, whose certificate as to the
amount is to be taken as final and
conclusive for the purpose OF the
agreement and guaranty.
During the federal control adequate
depreciation and maintenance OF the
properties of the road will be included
as part of the operating expenses or
provided through reserve fund, IN
accordance with principles and rules
which the president will determine.
Up to President.
Section 2 provides that if no
such agreement is made with a road,
the president may, nevertheless, pay
or cause to be paid to any railroad
while under federal control not ex--
ceeding 90 per cent of the standard
return. Under this section the legal
rights of the, railroad for prosecution
Of its claim for the balance before the
court of claims is provided for, and
anv amount found due above that
amount. that had been paid will bear
interest at E per cent year and any
excess amount paid by the govern
ment will be recoverable by the gov
ernment with 6 per cent interest.
Submit Claims to Board.
Section 3 provides that any claim
ior lust compensation which is not
adjusted under the terms provided in
section | will be submitted to
board of three auditors appointed by
the Interstate Commerce commission,
whose members and official force
will be eligible for that service with
out any additional compensation.
These auditors will give a full hear
ing to the road and to the govern
ment and will report to the president
the amount due the road as Just COM
pensation. A sum not exceeding the
amount so reported may be agreed
UPON by the president and the road.
Failing this agreement, either the
federal government or the road may
file a petition in the court OF claims
for final ascertainment OF the
Continued on Page Seven. Column THo')