The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-02-08
FIGURES BILLION
COMPENSATION
FOR RAILWAYS
Chairman Smith Explains
Bill in Detail in Long
Report to Senate.
MINORITY REPORT MADE
Official Statistics on Income,
Gross and Net Revenues Of
Lines for Years.
MINORITY REPORT MADE

~SSSOSSsS - 49, OoSs
WARRINGTON. FSb. 7.-Report On the
Administration raileoad bill WAS made 10
the Senate to-day BY Chairman Smith
"a. C.) Of the Interstate Commerce
Committee. explaining at great length
the Astails Of The measure - The COM
mittss has approved II. the way In
whtch the raalways ami the country
will b effected and %he effect Of vhs
lsgislation Gensraily. A minority report
was presented by Senator Poindsxtsr
(wash.) protesting against returning
the railroads to their owners eighteen
months after the psaoe treaty 10 signed
and agaanst divesting the interstate
Commerce Commission Of its rate maxi
ing powers and Of vestins this power In
the President
Tho report explains the bill section by
section. The prediction In made that
tho great railroad systems Of the coun-
try will rsadily make asresments with
the Director-0 General for compensation
based ON che average earnings for the
yeArs 1sl5-l7 inclusive. Consideration
Of the fact that some roads have in
vested some hundreds Of millions Of dol
iars IN their properties recently will
raase the total amount Of this compen-
saaion to esss.eoo. 900. and perhaps s5,-
100000 mors than that. Senator Smith
pointsd out. Nr. Smith estimated . ~
tusW - SIS per caat. II = clear tha
report Ays. that railroads accepting the
propo1sd eonpGuAtion WIN be able to
mako &heir usual tlividend disbursements.
Prewe6iklng extra dividends. except on
the approval Of the Director General, v
. safeguard to prevent speculation and
manipulation Of stock.
Estinates Of obligations.
Tho report estimates maturing oblisa-
tons Of railroads for the ensuing four
years which must be paid II the Gov
ernment Is still operating the roads at
$ls2.sos.000 for 1918. &lss.2l3,0oo for
1919. 31sS.6f6.oO0 for 1920 and $780,
$685. 900 for 1921.
The report explains that the period
set for the retufn Of the roads to their
owners, eighteen months after peace ID
declared, Is deemed sumclent by the
committee to make any adjustments to
peace conditions to warrant the assump.
tion that the roads will be turned back
in as sood shape a. when the Govern.
ment took them. II IL pointed out thai
; the Senate bill contains the provision
that the President may make agree.
the roads or any part OF . system prios
to the time specified in tho bill for turn
ing them back.
The committee. Mr.. Smith said. ''ad'
hered to the set purpose to umit this
legislation to war emergency purposes
and to avoid all contentious and con-
troveesial questions. We believe thai
+, the bill will accomplish these results
II follows CLOSELY the Presidents recon-
mendation~. It has In Its main pro
visions and purpose received general ap
proval and comparatively little criti
cism."
No Quibbling About Future.
"Your committee 10 Of the opinion tina
this 10 the time for war emergency
legislation and not the time to SETTLE
| the many controversial and vexed Ques
| tlons concerning our future transporta
tion policy" Chairman Smith says I,
prefacing his report. He then takes VI
| the compensation section and adds:
"About seventy-nve great operating
| railroads do over 20 per cent. OF tn
railroad business The committee be
lieves that most Of these great railroad
carriers will accept these terms as
jus. and fair measure OF their consti
tutional rights. Section ! further pro
vides that ordinary taxes. national ant
STATE, shall. as now. be paid out o
operating revenue: but war taxes &C
cruing under the act OF October ;. 1917
are to be paid by the companies on
| ConfInued on Fourth Pare.