Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-02-21
Senator Underwood Asserts in
Speech in Senate That F.
nanciaI Problems Brought
Federal Management,
POWERS TOO BROAD;
WILL VOTE FOR IT
Thinks the President Would
Have Too Much Authority
but Alabama Man Says He
viii Support Measure.

Inv GoHaIae iovssAl seaoisL lrassn w,ss,
Washington, Feb. 20.--~1fhe finan.
cial situation and not war needs or
freight congestion. Senator Under
wood of Alabama. told the senate to-
day. was the real cause for the gov
ernment taking over the railroads.
The senate was debating the admin
istration bill providing for federal
control OF the transportation lines
during the war.
"The real cause was question of
finance" he declared.
when the president issued his
proclamation last December" Senator
Underwoor said, "the railroads faced
S1S2,606,6S2 in maturing obligations
on securities for 1918 while for the
four years which would end In 1921
these obligations would total $685.
100000 Under normal conditionsthe
railroads would have found nb trouble
in renewing them. but because Of the
war and the floating of bond issues by
the government, II would have been
an impossibility," he said. -
There were two conditions facing
the president" Senator Underwootl
continued, "either the United States
government must take over the rail-
roads and finance these securities
during the war or congress had to
prepare moratorium and provide
that no suit be brought on these rail-
road bonds and foreclose them dur-
ing the war and for reasona Bile time
afterwards if We wanted to continue
to operate great railroad systems Of
the country, fteFH.i
II don't think there was a business
man in the United States who did not
realize that something must be dime
and the president. In his wisdom, de.
cided on this course"
Wisdom OF Action.
For that reason he urged Il was
row necessary for congress to recog-
nize the wisdom of the presidents ac-..
ton and provide for It accordingly.
while we fight to make the world
safe for democracy on the European
battle fields, should we neglect de-
mocracy in the United States or fail i
to see that the great principles ara
carried out so as to make democracy.
safe for our own peopies?" asked Sen
ator Underwood.
II think the time has come when
we should pause and consider wheth-
er we have not made some mistakes
through the generosity OF congress to
respond to the nations needs"
Senator Underwood thought the bill
conveyed too broad powers. but said
he would vote for 1t unless II was
amended to make government control
indefinite.
when you step one foot beyond
the period of war and turn our trans
portation systems over to one-maR
power" he said, you are establish
ing machinery for oppression. build
ing up an organization for destructidhr
of business and endangering fundar'
mental rights of the people.
The Fate OF Russia.
''We have seen the autocratic gov
ernment Of Russia fall into the hands
of an uncomfortable mob--swung
from the power of an autocrat to tho
despotism of mob without checks
or balances.
sour own government possesses to-
day the constitutional checks and
balances that protect us from the
despotism Of the autocrat and tho
spirit Of the mob. provided congress
will uphold them When congress Is
ready to surrender these constitu.
tional checks and establish a govern
ment Of men instead OF law. then there
In danger ahead for the American peo-
pie"
Senator Underwood declared that
since the bill was only war emer-
gency the powers vested In individ-
uals could be performed without daE-
ger. He supported the provision fin
ing compensation to the railroads.
Il don't think for a moment" he
said. "that the president is going 10
pay all that the railroads demand cr
expect"
Senator Underwood opposed giviis
the president power to fix rates. de-
claring there is mo war power or war
necessity involved In rate making"
Supported by sherman.
Senator Underwood was followed By
Senator Sherman Of Illinois. who sup
ported the bill. He said he did not
approve of all it's provisions but sit
is emergency legislation he would vote
for It,
Substitution of the bill as originai-
ly drawn. providing for indefinite
period of government control and
authorizing the president to fix rates,
for the measure as reported by the
committee was urged by Senator
Poindexter of Washington.
''The committee bill overturns abso.
lutely the initial rate making powers
of the state and Interstate Commerce
commissions Senator Poindexter said