The daily banner. (Cambridge, Md.) 1897-2008, 1918-02-08

Yearly Payments fSi.n2'3d BY
Se..3i5 CeH.Iill.l.;3.
CCaTR0L is MOS.
Government Pledge Under Sill Re
ported to Senate Rep esents Re
turn of 5.32 Per Cent

turn of $50 Per Cent.
Washin ston. Feb. s. - Senator
Smith, Democrat, South Carolina,
chairman OF the senate interstate
commerce committee, reported favor
ably 10 the senate the administration
railroad bill.
He estimated that under the meas
ure's provisions the government viii
guarantee annually to the railroads
OF the country 1915, 000,00O, whicl is
an annual return Of 5.32 per cent.
This, he says. reflects neither power
ty nor riches" but the committee be-
lieves a majority of the railroads will
accept these terms as a just and fair
measure of their constitutional
rights"
An agreement on the bill was reach
ed by the committee last Saturday.
Minority reports are to be submitted
by Senator Cummins, Republican
Iowa, and Lafollette, Republican, Wis
consin. Administration leaders plan
to call the bill up for consideration
next Monday
Your committee is of the opinion
this is the time for war emergency
legislation and not the time to settle
TIE nHNr controversial and vexed
questiors concerning our future trans
poTtation policy" Mr. Smith says. He
then takes up the compensation sec
ton and adds:
About seventy-five great operating
railroads do over 80 per cent Of the
railroad business. Section !. further
provides that ordinary taxes, nationa'
and state. shall, as now, be paid out
Of operating revenue: but war taxes
accruing under the act of October 3
1917, are to be paid by the companie
CIT of their own funds, or charge"
against the standard returns. In otHef
words the holders Of railroad secu~i
ties are to bear their own just porto.
of the war burden. Section / all
requires that each agreement sha'
contain adequate and appropriate pro
visions for the maintenance and d"
preci7i ion Of the property and tn"
c'eation of reserves so that the prop
troll be returned to the owners in ?
condition substantially equivalent to
their condition when taken over b.
the government
There has, of course, been much
discussion as to the fairness and just
ice Of the proposed amount OF the
standard return. 1t is plainly in the
The rights of the owners must be
tested by present conditions, not by
some theory of capitalize ton never
made operative under federal or state
law or generally followed by tn
courts"
Senator Smith explained in case of
controversy over compensation the
bill permits an appeal to the court
of claims. The committee recon-
mends improvements made by the
government while the carriers are un
der government control should go to
the railroads when they are returned
to security holders. This should be
arranged through an agreement be
tween the carriers and the president
Discussing the provision inserted by
the committee providing for the ter
mination of government control eigh-
teen months after the peace proclama-
tiCn has been issued, the report says:
ut is possible that certain condi-
tions may arise from federal contro
which will need adjustment before tie
properties are returned to their own
ers, and a reasonable period Should
intervene in which these conditions
may be met and adjusted. 1t may be
that the nation will be unwilling 10
return to the conditions obtaining
before the assumption of federal con
troll.
Legislation may be demanded rad
ically changing the relation of the
government to the railroads from that
now existing in the interstate com
merce act os amended. Your com
mittee has suggested neriod of
eighteen months, and they believe it
will be found adequate for that pur-
pose.
There is also provision to the eff
feet that the president may prior to
July 1, next, reEnquish control of
such transportation systems as he
may deem not needful or desirable
and may, thereafter, on agreement,
relinquish all or any part of any sys-
ter, Of TRANSFORMATION