Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-03-14
Provision by Which States
Would Have Been Barred
From Imposing Taxes on
Properties Is Cut Out,
FEDERAL GRIP TO END
Fl MONTHS AFTER PEACE
Compensation viii Cost Gov
ernment Nearly Billion DOL
lars Annually; All Short
Lines Are Included,

! tHF ho7iIiHe JOURNAL SPECIAL LEASED WlREl
Washington, March 13.-The sem
tie tonight adopted the conference
report on the administration railroad
control bill by a vote of Al to 8, after
| it had rejected and the conference
had eliminated a provision limiting
power of the states to tax the carriers
while under federal control. The bill
now goes to the house for final action.
probably tomorrow.
Voting against the report were SEN
ators Borah of Idaho, Cummins Of
Iowa, Gronna of North Dakota, John
son of California, Kenyon of Iowa,
Norris of Nebraska and Townsend of
Michigan, republicans, and Gore of
oklahoma, democrat.
States Rights Protected.
Elimination of the tax provision re-
suited from initial use of the new SEN
ate rule prohibiting conferees from
writing new matter into a bill, A
oint of order raised by Senator Fre-
.linghuysen of New Jersey, republican,
against the tax clause was upheld to-
day by Vice President Marshall and
sustained by the senate, 81 TO 80.
The bill then was returned to con-
ference, where the original tax sec
ton, providing that state taxes and
railroad regulations shall not be in
terfered with so far as they are con-
sistent with federal control, was re-
inserted
Other Provisions Adopted.
Other principal provisions of the
bill retained as the conferees ad-
Justed them, are those for compensat-
ing the railroads on the basis of their
net income for the three years ending
June 80. 1917, involving an estimated
federal guarantee of about s945,00O,-
900 annually, limiting federal opera
tion to twenty-one months after the
war: authorizing the president to in
itiate rates, subject to approval by
the Interstate Commerce commission;
appropriating $500, 100000 for a re-
volving fund for the director general,
and placing all short lines within
the federal system.
Condemned by johnson.
In the final debate today Senator
johnson of California, republican.
said the bill was unfair and unjust
to the people and outrageously gems
erous to the railroads, while Senator'S
Townsend of Michigan. republican,
end Cummins, Iowa, republican, re-
iterated their criticism of some sec
tions of the bill Some of the bills
principles. Senator Townsend said,
are "subvorsive of good government"
at is never proper for "a republic
to confer blanket power on an eXecu-
tive or railroad director" said the
Michigan senator. ~ sometimes think
we are towards A bill is introduced
and some one raises the flag OF
patriotism and says unless we sup
port the bill We are not supporting
the president
Some Sharp Criticism.
''r would rather be for my country.
] will support the president whenever
that is necessary for the successful
of the war"
Senator Cummins gave the senate
a final warning that he believed the
proposed Tor the roaus
would do more to SOW the seeds OF
than any other measure
ever enacted by the senate.
Critieizing the rate making pro-
vision, Senator Cummins said 1t was
to be expected that the railroad man
ayers whom Director General McAdoo
has gathered around him, will con-
tinue to urge rate increases Within
six months, the senator predicted, |
rates will be substantially increased"