The herald and news. [volume] (Newberry S.C.) 1903-1937, 1918-01-11
WILSON ASKS FOR
new LEGISLATION
hts TO REGULATE THE GOV
EERNMENT OPERATION OF
RAILROADS IN U. S.
IS APPROVED BY CONGRESS

Compensation on Basis of Average
. Operating income for the Last
Three Years.
\ Washington n:-Legislation to regu'
Nate the government operation Of rail.
roads and to guarantee the carriers
compensation on the basis Of Their
average operating income for the
last three years was asked of Congress
by President Wilson in an address to
both houses in joint session. Bills
embodying his recommendations and
carrying an appropriation of half
billion dollars as a revolving fund"
awere introduced Immediately and an
IA #attempt will be made to rush them
70 prompt passage.
While the presidents address met
18th general approval among demo
~crats and republicans alike, opposi'
tion is expected to develop to a pro-
vision in the administration bill that
federal control shall continue after
the war indefinitely or until congress
orders otherwise and other details Of
the compensation basis.
The plan will affect Immediately
only the wage requests Of the broth
erhoods but demands which may be
made later by other classes Of organiz-
ed labor probably will be handled in
he same way, Mr.. McAdoo reserving
M right to make whatever decision
chooses without regard to recon-
Eendations CT the advisers.
kaSome increases, both to the broth
hoods and to other railway labor,
are generally considered certain. The
director general i'll a statement prom
ised every employee "that his rights
and interests will be justly dealt
with" and appealed for a hearty
spirit of enthusiasm and cooperation
from every one.
Efforts to speed the movement OF
coal and other freight continued along
with the legislative and labor phases
of the railway movement and special
orders were issued providing that 500
n additional cars shall be furnished daily
NO a certain specified bituminous and
anthracite mines. mainly in Pennsyl-
Ania, for supplying New England.
These problems forced Mr.. Nc
Adoo to postpone action on eastern
passenger traffic officials recommen'
dations for curtailment of passenger
schedules but he is expected to issue
orders then for abandonment of a
number of trains and elimination OF
parlor and sleeping cars to a great
extent.
Mr.. McAdoo explained today that
RAalthough no general provisions can
Na. made under the law for exempting
broad employees from the draft, he
not hesitate to appeal to local
gmption boards to defer the calling
these workers If the boards Of their
p violition do not display ten.
Icy to regard the railroads IS an
Essential industry from which en-
: ployees should not be taken for mill
tary service.
When the president concluded, the
administration bill was introduced In
the senate by Senator Smith, Of South
Carolina. ranking Democratic mem
Der Of the interstate commerce COM
mittee. In addition to .approppriating
$500 900, 900 and providing for the
COMPENSATION basis under which the
government guarantees an aggregate
return of some s9o0,0Oo,O00 a year,
the measure sets forth in detail the
conditions upon which government
operation is to be carried on.
Under the last provision the pres.
ident is expected to issue an order
transferring to Director General Nc
,Adoo all functions vested in the chief
executive. This will enable the direc-
tor general to organize corporation
for handling railroad securities in &C.
\ cordance w'4h = plan Row under con-
"A sideration.
Railroad officials are expected to
Rrge a number Of notifications Of the
ceounting method prescribed by the
n for reaching the standard return
Ills. but officials expect the scheme
B$ outlined in the bill probably will
II followed in the main Some dis
Z Icussion is looked for over the Bills
iprovision that new federal taxes un
der the war revenue act are not to
he charged against the revenue in
computing the standard return as are
ordinary taxes The effect OF this
4 will be to gequire railroads to pay
IL war taxes out Of their governmental
heompensation.