New Britain herald., 1918-02-19
DEMANDS NATION
 KEEP RAILROADS
Sen. Johnson Insist on Permanent Government Ownership of Lines
 PROTESTS RATE OF INTEREST
Californian Declares People Would Pay for Watcrcd Stock Under Pro- posed ArranG nGCmcnt-Arraiens Ho~ Island Shipyard PrOfitccrs.

Washington, Feb. 19.-Permanent government ownership of railroads rather than government control for the period of the war was advocated by Senator Johnson of California to- day in a speech opposing the senate draft of the administrations railroad bill:
 1T would now take the inevitable next step in government control of ,, our railrOads,' the senator declared, 'and do whatever might be essential to make that government control permanent. government ownership, or at least, leave the way open so that immediately upon the termination of the war, we might follow to it's logical conclusion what already We have partly done.'
 The California. senator protested vigorously at the proposed rate of compensation to be paid the roads under the provisions of the bill and 1 opposed the senate's plan to turn tho 1 roads back to private management Is months after the conclusion of peace.
 America Has Paid Price. 1 In support of his declaration for 1 government ownership he said that the roads had broken down under the i stress of the last few months; that, 1 if the country is to have efficient national transportation, the roads must be nationalized and operated by l one directing head; that the Amerl- l can people have paid the price of | private ownership" and that, "desplte barriers or obstacles, the nation is marching straight to the goal of pub lie ownership, and the people at last l will come into their OWn.''
 l Senator Johnson argued that the I maximum compensation should not be paid the roads at a time when all the rest of the nation is being asked to make the greatest sacrifice.
 "What this proposed rate means v | added the senator, 'is that the in
 terest on the outstanding bonds Of the railroads will be paid in accord-
 ance with the interest rates now | fixed; it means, in addition, that upon
 the stocks of the railroads will be | paid by the government of the United
 States something in excess of eight 1 per cent. per annum; it means that
 this percentage in excess of eight per
 cent. per annum is paid on all the
 stock of all the railroads; it means
 that this percentage (and l am speak
 ing only of the minimum) shall be 1 paid by the pGOplS OL tuS Cl1LSt
 States not only on legitimate issues
 of the stocks of railroad corporations
 but on every issue of stock that has
 been illegitimately iSSued-Watered
 stck estimated at almost fifty per , cent of the total stock of these cor
 porations-stock representing nothing
 but the greed and the avarice of rail-
 road Inagnates."
 Senator Johnson disgressed from
 his discussion of the railroad legisla"
 ton to express his approval of Presi- - dent Wilon's recent stand against se-
 cret diplomacy and the presidents - policy of addressing congress from
 time to time in the open forum ot
 the world.
 Respects to Hog Island Contract.
 Senator Johnson referred to the , work of the senate commerce com , mittee of which he is a member and it's relation to the shipping situation f i Regarding the Hog Island, Pennsyl-
 vana, inquiry he asserted:
 , Tn one of the contracts entered
 into by the government-that with
 the American International CO.--d
 state of affairs beggaring descrIi.tioI
 has developed. The evidence demon
 strates wild saturnalia of extraV
 agance a brilliant phantasmagorl ol
 patriotic pretense. And the pity anC the shame of it are that those who , with a cheerful and almost studied , disregard for every principle of econ, i omy. are wasting the money of the
 taNnayars ara some of the great Crp-
 1 .i.r 0r i i..7. 1P tNn nGtjOn.'