The daily banner. (Cambridge, Md.) 1897-2008, 1918-03-08
TOSPEND BILLIONS
On RAILROADS
Government Planning 10 Pur-
chase Equipment.
TO NAME ADVISORY BOARD
Purchasing Agents Will Soon Be Ap-
pointed to Buy Locomotives, steel
Rails and Cars.

Washington, March S.-Railroad
purchases amounting to between ST.
O00,000,000 and $4,000, ,000 600 will be
made through the railroad admins
tration this year, Director General Nc
Adoo announced. The administration
will be assisted by a central advisory
committee OF three railway purchas-
Ing agents, to be appointed soon.
The railroad administration will
purchase directly all locomotives and
other rolling stock and steel rails,
while most other materials and sup
plies needed for current operations
will be purchased by the roads them
selves. All contracts for periods of
six months or more will require the
approval Of the regional committees
before completion.
Mr.. McAd0o also announced that an
advisory committee of three railroad
executives, one from the north. one
from the west and another from the
south. will be named within a few
days to assist John Shelton Williams,
director Of finance for the railroad ad-
ministratiOn. in administering the rail-
roads money matters this year
This committee will pass on the fl
nancial requirements of railroads
either for the renewing of maturing
obligations and issuance of new secu-
rites or providing for betterments and
additions.
nf 4I0 6,,, s-%,,1
road bill, to govern federal control, is
expected by congressional leaders by
the end of the week.
Final agreement was reached by
cOnferees on a compromise measure.
The compromise rate making section
causes considerable speculation It
provides that President Wilson may
initiate rates, but that the interstate
commerce commission may overrule
him after a hearing. However, the
presidents rates stand while the hear
ing is being conducted, and the COM.
mission in arriving at its final decis-
ion must take into consideration the
facts that the roads are under unified,
eantrnl a nd that the president IS re-
sponsible to make them a financial
success.
This compromise, written by Senat-
or Robinson. of Arkansas. followed an
animated argument between the SEN
ate members of the conference, who
held out for the interstate commerce
commissions final power, and the
house, which was equally insistent for
the presidents authority
The roads will be held twenty-one
months after the war-a compromise
between the senate's eighteen months
and the houses two years.
Skirmishes on the floors of both
houses will come before final passage
of the bill. Middle west Republicans
will seek again to retain rate making
mower with the president.
The house provision bringing under
fedeYal control all the so-called short
lines which either connect or compete
with roads already taken over was
accepted by the conferees. who also
inserted in the bill a provision limit
ing the ratio of taxation of railroad
property in the various states 10
rate not higher than that for the year
previous to the taking over Of the
roads.
About s6 600 900 is lost annually to
the roads through an amendment de-
nving them q return on the improve
mert ad extensions made in the six
months ended December 81, 1917.
They had asked this, in addition to
the three year average.
Roads. however, which can show
that. by reason of reorganization, they
spent extraordinarily large sums on
improvements during the three years,
are given permission to make an
agreement with the president for ad-
di.ional compensation.