The Glenwood post., 1918-09-07
and afterward with Mr.. McAdoo.

and afterward with Mr.. McAdoo.
The committee urged the director
general to consider the Midland road
military necessity and take over its
operation. The director general, how
ever, stated that the railroad board
had decided that the road was not
military necessity to the United States,
and would not, therefore, take it over
under the railroad act of congress.
1t was admitted that the road was
indispensable to Colorado, and the offer
to take it over for this reason upon
terms offered the owners and communi-
Gated to the public utilities commission
was made. The offer is to pay five
per cent or 100000 per year to the
owners upon their investment; to alb
and maintain the road and its equiv
ment and return the road to the owners
at the end of the operated period in as
good condition as it was when takn
over.
The terms have therefore been de-
fined so that no question longer exists
as to just what they are. The commit
tee was of the opinion that the terms,
under the circumstances, are fair.
1nasmuch as it has been decided that
the road is not a military necessity to
the government, it is useless to further
consider the question of taking the roal
over under the act of congress or at all,
excepting on terms to which the gov
ernment and the owners agree in ad-
vance. The government takes the view
that it should not do anything which
will obligate it to pay return on
m re than the actual investment of the
owners, which is approximately $2,-
100000. 1t was stated that the gov
ernment does not think that under war
conditions a profit on the investment
of any amount more than fair return
should be made by the owners.
Ah' S'iiSS'oi SChSinl dSSulCu thV
committee that the government would
not permit the road to be dismantled
during the war, because of its business
value and its necessity to the public as
a public utility.
lnasmuch as the government will not
take over the road under the act of
congress, it is, up to the authorities Of
Colorado to provide for the operation
of the road for the compensation and
subject to the terms offered. The gov
eminent believes and the committee be-
lieves that the public utilities commits
sion has full power to require the road
to operate for the compensation which
the government will pay. To assist the
committee in fixing responsibility the
director general communicated the gov,
ernment' 3 offer direct to the public util-
ties commission, and the Colorado 0
members of congress and your commit
tee asked the public utilities commits
sion by wire to exercise it's unques-
toned power to do this. So far the
commission has not acted, claiming
| that it cannot act until the supreme
court passes upon an appeal from an
order of the district court of Ell Paso
county denying the attorney general s
| right to intervene. The attorney gen
| eral sought to intervene when the dis
trict court authorized the receiver t.
dismantle and sell the property. The
commission, however, is not a party 10
this action and its jurisdiction in the
matter cannot therefore be directly
passed upon but simply the jurisdic.
tion of the district court to order the
road dismantled and sold. The Colo.
RADIO members of congress entertain the
same opinion, and Senator Thomas ex-
pressed it in wire to the commission
which the committee understands ha:
not been made public.
1t is our opinion that the commission
is ignoring the fact that the railroad
administration has definitely decided
that the road is not a military necessi
ty, which decision eliminates all OBJ
jections raised by the commission tc
our demand that the commission take
jurisdiction and require the road to be
operated. The commission has already
decided that public utility. cannot
withdraw its service without first ap
plying to the commission and obtaining
an order to do 80 upon showing that
it has not sufficient revenues to enable
it to operate. Under the circumstances
the responsibility is squarely upon the
public utilities commission to determ
inc whether or not the road shall op
crate.