New-York tribune., 1918-02-23
Senate Passes
Railroad Bill:
Short Lines In
Administration Measure
Goes Through Without
Dissenting Vote
[.Stdf Correspondence

WASHINGTON, Feb. 22.-With only
two important changes made from the
form in which the bill was reported by
committee, the Administration railroad
bill was passed by the Senate late to-
day without dissenting vote.
One of the amendments, which was
strongly opposed by Director General
OF Railroads McAdoo. provided that all
of the independent short lines, with a
total value estimated at 1000 000, 900,
should be included in the roads taken
! over by the government and compen-
stated on the same basis as the larger
roads.
The other important change from the
form in which the bill was approved by
/ the committee was made yesterday and
! adhered to to-day. This struck out the
provisions which permitted the owners
Of the roads to be paid interest on ad-
ditiona capital put into the properties
during the thrce-year period.
The committee bill differed i'll two
important particulars from that pro-
posed by the Administration.
Time of Control Limited
One of these is that a definite date is
provided for the return of the roads to
their private owners-eightee months
after the conclusion of the war. The
/ other is with regard to the rate-hXing
powers. The President. according to
the bill passed by the Senate to oday. is
empowered to initiate changes in
freight or passenger rates, but the
power Of review of these changes is
given to the Interstate Commerce Com
mission.
AS passed by the Senate, the bill
adopts precisely the terms of compen-
sation TO the owners Of the roads which
were outlined by the President. 1t pro-
vdcs for the payment to the owners Of
the equivalent Of the average net op-
Grating income of the roads during the
threes fiscal years which ended June 80,
1917. Deficits will be made up by the
government. Surpluses will be covered
INTO the Treasury.
A revolving fund of $500 100000 is
authorized to pay the expense of Fed
cral control and TO make improvements.
This fund will be used to make up the
deficit in any cases where the roads,
under government control. do not earn
enough money to pay the guaranteed
return to their private owners.
Another provision empowers the
President TO buy stocks and bonds OF
the railroads at prices not to exceed
par and to sell them at any advance
over the purchase price. This power is
intended to be utilized for stabiizing
the market
There were two sources of opposition
to the eighteen months section of the
Senate bin. Senators opposed to gov
eminent ownership attempted to make
the period shorter. Senators in favor
OF government ownership tried to make
the period indefinite, one amendments
which was rejected, providing that the
government should retain the roads un-
I'll further action by Congress.
The vote against all of these amend
ments was very heavy. For instance
Mr. Lodges amendment. which would
have restored the roads six months af-
ed by 4, to %.
he Senate had rejected yesterday
by large majority the amendment
proposed by Senator Johnson, OF Cali
fornia, which would have left indefinite
the time for the restoration Of the
roads.
Senator Cummins lost his fight TO
have the rentals paid TO private owners
for the roads restricted His amend
ment, which would have limited the re-
turns to > per cent, was defeated by
10 to IL, while his amendment limit
ing it to per cent was defeated As
TO "a, and per cent, by Al to 27.
AS passed, the measure provides that
approximately s945,0OO,000 will be
guaranteed the carriers, based upon
their standard ne. return for the three
year period ending June 80, 1917.
General debate was concluded to-day
in the House, and arrangements made
30 consider amendments tomorrow,
under a live-minute debate rule. with a
view to final action early next week.
Differences between the Senate and
House drafts then will be adjusted in
conference
Representative Lanroot, Of Wiscon-
sin. Republican, criticised the bill in
the House day declaring it containe d
many inaccuracies and absurdities