Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-01-07
WORK BEGINS ON NEW
| I" RAILWAY BILL MONDAY
House Committee Will Learn Trans
portation Finance From
Experts.
MAY GALL NEW DIRECTOR
Main Feature of New Act Is TO Guar
~antcc to Roads Annual Earnings
Equal To Average Net Income for
Three Years.

WASHINGTON. january e. r II c
louise Committee Oh Interstate aud
i'otcign Commerce tomorrow will
meet IL take up the administrations
ill calculating the ing over hy
he government, OF control OF the rail
| Dads.
Tho main feature o. the o:l is the
guarantee to the roads of annual earn
nss equal 10 the average Of their net
ncomc for three years PRIOR 10 June
10, 1917. This is the section that Is
lNpcctcd to occasion the most study
md scrutiny.
Chairman Sims or the committee an
icipates the necessity OF holding some
hearings on the bill-not hearing in
he sense Of invi'inr discussion Of
academic questions of government own
:rship and all tina, sort Of thing, but
Q afford opportunity for vcrnucnt
Npcrts 70 explain fuliy the operation
1 # the measure il enacted into Law.
Director GENERA. McAdoo vii! he III.
:itcd to appear, ii &c cares II come
Jctore the committee. and the mem
8Dcra Of the Interstate Commerce com
Mission viii certainly he expected To
:lucidate the several sections al tn:
,il.
Already tho question Is being ask ed
10y members OF the committee and or
he House: What ~ net incomc?' Tn.
commission has !aid down a general
definition Of net income, but the qucs.
ion may BE- complicated III this ease
~ the wording OF the bill Itself. !.'o~
Instance, II is provided that said no;
'ailway operating Income for the pur-
poses Of this act shall, as To car
I'icrs making return" 10 tho Interstate
commerce Commission. hc computed
rom such returns, excluding, however
1ebi's and credits arising from tho
accounts called in tho monthly returns.
ccacd road rents and miscellaneous,
'ents; provided. however. ;nat no Fed
raj taxes in excess Of ,hc :aX.s as.
icsscd during the year ending Juno ~.
3!olI, shall hc charged against revenue
n computing such standard return
j Any net railway operating income in
FNccss OF such standard return shalt
&c the property II tho United states.
The amount "f such standard rc,arn
~ accruinE during said period O.:
hrcc years shall be determined hy tho
Interstate Commerce Commission" o;c.
The committee. il Is said. desires a
'uIl explanation or the intricacfcs o.
'omputinr the net income. being as
iurcd that u vollcy OF questions viii
f'c directed against tho managers or
nc bill when il comes on tho floor of
nc House. IL is expected that the
commission Viii bc prepared 10 illu-
innate ALL phases OF this question. as
nc opinion l. held generally at tho
apltol that the Interstate Commerce
commission really started the move
ancnt which eliminated in tho taking
over the roads in its recent spccsai
,eport TO Congress recommending gov
l'rnmcnt ownership in eject,
Railroad scntimcn, as To the bin is
Npcctcd 10 develop al the hearings.
taken by and large, McmLcrs OF The
louise arc inclined 20 view the prcsl-
!cnts address or Friday as holding
TT highest encouragement 10 the rail
Dads as TO tho maintenance of the
.aluc OF their securities the upkccp
I u tho roads and the general prosperity.
If the railroad business under govern
Il ncnt control. II is pointed out that
he President gave assurance that the
properties would be handled in a way
promote their welfare and by no
rcans 20 their dctrmcnt.