New-York tribune., 1918-03-09
Dissatisfied Holders of
Bonds and Stock May
Go TO Courts
Upkeep Guaranteed
Conferrees Make Final Draft,
Making President Absolute
in Powers Granted
Stof CorrespON0eNcol


WASHINGTON. March 8. - Final
agreement on the Administration rail-
road bill was Reached to-day BY the
House and Senate conferrees. The
bill, in the precise language in which
it probably will be enacted. contains
these essential features:
L. As compensation to the stock and
bond holders Of the railroads during
the period Of government operation the
government is to pay to them 'just
ompensation," as it. is Labelled in the
LII, OF not more tnan the average rail
way operating income Tor the three
fiscal years ended June 50, 1917. The
actual return Is TO be fixed by agree
ment, with That limitation in view. If
the railroad is not satisfied it may
have a board arbitration, or ii the
boards decision is unsatisfactory it
may appeal to the courts. The govern
mcnt may keep any surplus above the
"Just compensation or make up any
deficits
,. The President receives power to
change freight rates, or passenger
fares, or to change classitications. The
new rates are subject to the review of
the Interstate Commerce Commission,
which may finally ovcrrule them, but
they may not be suspended during such
a review. as the commission always has
suspended increased tariffs filed by the
railroad com UAies during hearings.
Furthermore, the commission is dl-
rcctcd by the bill to take into the con-
sideration of such rates the statement
by the President that he considers such
Increases necessary.
3-The special war taxes, including
the increased corporation income taxes,
must be paid out of the Gust compen-
sation," bat all other taxes come out Of
regular easnings, being paid out of
earnings il the roads make enough or
made up by the government If there
are not sufficient earnings.
1-The government is to make re-
pairs, renewals Of equipment and at
tend to the upkeep to such an extent
that the roads may be returned to their
owners at the end of the period of gov
ornmeNt control in substantially the
same condition as they were when the
government took them over. Additions
that are mot justly chargeahle to the
United States' however, whicn may be
made during the period Of government
control, win be charged to tle owners
In determining the justice OF any such
charges the bill directs that money
spent by the individual railroads in the
three-year period ended June 80, 1917
shall be taken into account.
5. The bill specifies that .he roads
shall be returned to their owyers TWEEN
ty-one months after the conclusion o1
peace. but gives The President the
power to reiinquish contro! at any
time he may deem it desirable. In ad.
dition to this broad power .he Presi
dent IS authorized to relinquish contro
at any time Of any road he may no
think necessary to keep.
6. AS to the roads whose Gust com
pensation' under the rule set fortf
may not seem proper because thei
normal earnings were not properly re
dent is authorized TO negotiate sucl
an agreement as he may see fit.
T.. Half a billion dollars IS appropri
atcd for revolving fund.- out o
which the President may make any i'm
provements, constructions, additions
terminals, increases in equipments, O
anything else deemed necessary Ou
of this fund, should there be deficit
1T could be made good.
s. Dividends equal to the regular div
dends paid in the three years ende
uHe ~, 1Jl I, may Dc pdlu Dy tTc rdll
road companies to their stockh old ai
without government action, but tn
Pres idcnt's approval must be obtaine
before any increases may be made. TIL
language of that section, which IS no
regarded by railroad men as absolutcl
clear as to certain roads, is as follows
"That no carrier while under FEEDERS
control shall, without the prior N
prova Of the President. declare or pa
any dividend in excess of its regu!a
rate of dividends during the thrc
years ended June 80, 1917; provided
however, that such carriers as hav
paid no regular dividends or no div
dends during said period may, wit
the prior approval Of the Presden
pay dividends at such rate as tn
President may determine"
1t was explained tonight that in tn
case Of road which paid per cen
during the irst of the three years
IS per cent in the second and 6 pc
cccnt in the 1hrd. there was som
doubt as 20 what that road could pa
without the approval of the President
The office of Director General o
Railroads is not mentioned in the bill
all of the power being conferred on tn
President There is no doubt, however
that the Director General will eXercis
oh Inf tn1u all tod