The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-01-04
PRESIDENT TO
SPEAK ON ROAD
CONTROL TO-DAY
Will Address Congress on
Guarantee of Revenue and
Method of Financing.
LEGISLATION rs DRAFTED
Opponents Of Government
Ownership May Make Early
Test Of Strength.
Special Despnfch TO TBs suN.

WAsHrNGToN. Jan. 3.-President vii.
son will lay before Congress in an ad-
dress tomorrow an outline Of the addi-
tionai legislation required by the Ad-
ministration for the proper operation Of
tho railroads as war emergency. The
address Is a short one and will not re.
quirc more than fifteen minutes for de-
livery. 1t will not SO into details Of
the legislation sought.
tentative draft OF the legislation IL
already in the hands Of some members
OF tho House and Senate Interstate Com
tional features added at the Capitol may
be introduced tomorrow. Some opposi-
tion has developed In the House Inter
state Commerce Committee and the bill
may not be introduced until after some
Of It's features have been threshed out
q triie more.
Congress Is lining up for and against
Government ownership OF the railroads.
All indications point to this becoming z
at once one OF the big issues. There Is
a strong faction OF the Administration
in favor of the Government taking over
the lines after the war. Some leading
financiers here, stanch advocates of
private ownership. are becoming pessi-
mistic over tho outcome Of this phase Of
the situation. So far as is known the
President is still unconverted to tho
Government ownership idea.
Two known Subjects.
So far as can DC learned the Presi-
dents address will deal only with two
large features of the railroad situation.
although third may be added. The two
features regarded as sure to be dis
cussed are the subject of the guarantees
to be given to the railroads for the re-
turns on their property during Federal
operation and the system OF taking care
Of financial requirements Of the rail-
roads during the same period. II Is
possible that the President may make
Soma recommendation for continuing
Government operation for a time after
peace is established In order to restore
the railroads to normal conditions.
II is on this latter point, II it /:
brought up. that the test Of the Govern
ment ownership sentiment in Congress
will come. II the President fails tt
make any recommendation of this sort Il
is assured that a bill to accomplish the
purpose will be introduced later.
On the character of the recommenda
ton by the President. IL one is made. oi
Of the bill itself when 1t comes, vii
hinge a greater fight than is expected
over any other feature. Tho Government
ownership faction will fight for law
ti,,,,a nj
operation for an indefinite period after
the war. The faction opposed to Govern
ment ownership will ask for dehnlt'
period--six months or year.
The President has indicated in hi'
procamatior taking control OF the ROAD
the sort of legislation he viii ask FOR I'M
guarantee Of returns to the railroads
lie will suggest the average net opera'
ing income for the three year perio'
1915 to 1917 inclusive as the basis
The attitude taken generally Is tina
Congress will have no right to bind th'
railroads TO this guarantee unless the!
choose to accept It. Any railroad whicl
does not choose to accept the guarahte'
( will have tho right Of appeal hrst 70 IN
! Interstate Commerce Commission an'
then to the courts.
In order to take care or matur,ht
obligations OF the railroads Legislator
will be included, II lis nov "'"'"S' W.
tain, definitely placing this rcspohS'
bility upon the Government. Two p'a"'
are suggested and the one favored h.
/ the President IL more likely to b'
adopted. The first is to authorize th'
President to buy up all issues OF rail-
road securities found necessary for th'
proper conduct Of the roads The sec
ond is the formation Of Government
corporation capitalized at such al
amount that il will bc enabled to per
form the same function.
Would Make Control Easier.
On this feature another fight Is SUR
TO develop, as Government owner
ship Representatives and Senators SCI
in the proposed plan a partial owner
ship OF the roads by the Government
through possession of the securities eve'