Arizona republican., 1918-01-05
THE BILL

The railroad bill is entitled "A bill to provide for operation of transporta- tion systems while under federal con- trol for the just compensation of their owners and for other purposes
 Section one provides that the presi- dent is authorized t0 agree with and guarantee to the roads that during the federal control they shall receive as compensation an income at an annual rate equivalent as nearly IS may be to provides that the net railway operating June 30, 1917. This the bill officially calls the standard return. This section provides that the net railway operatink income is to be computed from returns to the interstate commerce commits sion, excluding debits and credits, ar irving from the accounts which are called in the monthly interstate com merce returns, 'leased road rents and miscellaneous rents."
 No federal taxes in excess of taxes assessed during the year ending June 30, 1917, are to be charged against the revenue in computing the standard re- turns. Any net railway operating in- come in excess of the standard returns is to be the property of the United States. The amount of the standard return accruing during the three year period Is to be determined by the inter state commerce commission, whose certificate as to the amount is to be taken as final and conclusive for the purpose of the agreement and guar anty. During the federal control an adequate depreciation and mainten- ance of the properties of the roads would be included as a part of the op- xars.4 reserve funds, in accordance with principles and rules which the presi- dent will determine
 Section two provides that if no such | agreement is made with a road, the president may nevertheless pay or cause to be paid to any railroad while under federal control not exceeding ninety per cent of the standard return Under this section the legal rights O, | the railroad for prosecution of its claiu 1 for the balance before the court o1 claims is provided for, and any amount | found due above the amount that hal been paid will bear interest at six pc, cent year and any excess amour, paid by the government will be recov- erable by the government with six pei cent interest.
 Section three provides that any clain for just compensation which is not ad Justed under the terms provided in sec. tion one will be submitted to board O. three auditors appointed by the inter. state commerce commission who's, members and official force will be eli glble for that service without any addi tional compensation. These auditor, will give full hearing to the road an, to the government and will report t, the president the amount due the road A sum not exceeding the amount S, reported may be agreed upon by tn
 president and tle road. Failing thi agreement either the federal govern
 ment or the road may file petition il the court of claims for final ascertain
 ment of the amount of just compensa
 tion and in the court of claims pro
 ceedings the report of the auditors vii
 be considered prima facie evidence O
 the fact stated. The just compensa
 ton of any federal controlled road no
 making returns to the I. c. c. will b determined in accordance with thes
 provisions.
 Section four provides that the retur
 Continued on Page Two)