The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-01-04
Makes Average of 3 Years. In
comes sStandard Return"
Gives President Full Sway To
Finance and Maintain.
INCLUDES ANTI-STRIKE LAW
Makes Interfering With Opera
tion Severe Criminal Offense.
Provides for Collecting Dam
ages From Rail Companies.

Washington, Jan. 4.-BillS to carry
o,1t the presidents ideas, as expressed
today in his message to congress, al
ready had been prepared under the
supervision of the department of JUS
tice and were Immediately introduced
with plans for prompt consideration
in both house and senate
The administration bill for govern
ment operation of railroads proposes
that the government shall pay com
pensation at an annual rate as near
as possible to the net operating income
for the three years ended June 80,
1917.
The bill also would appl opr1ate
s5OO,0OO,0O0 to be used as a "revolv-
ing fund" with the excess earnings OF
the roads for the operation of the
law.
The bill is entitled "a bill to provide
for operation of transportation sys-
tens while under federal control, for
the just compensation of their owners
and for other purposes"
Section 1 provides that the pres1-
dent is authorized to- agree with and
guarantee to the roads that during the
federal control they shall receive as
just compensation an income at an
annual rate equivalent as nearly as
may be to the roads average net rail-
way operating income for the three
years ending June 80, 1917. This the
bill officially calls the standard re-
turn. This section provides that the
net railroad operating income is to be
computed from returns to the inter-
state commerce commission, excluding
debts and credits, arriving from the
accounts which are called in the
monthly interstate commerce commits
sion returns Leased road rents and
miscellaneous rents
United States to Get Net Income.
No federal taxes in excess of taxes
assessed during The year ending June
| 80, 1917, are to be charged against
the revenue in computing the stand
ard return. Any net railway operat-
ing income in excess of the standard
return is to be the property of the
United States. The amount of the
standard return accruing during the
three years period is to be determined
by the interstate commerce commits
sion whose certificate as to the amount
| is to be taken as final and conclusive
| for the purpose of the agreement and
! guaranty. During the federal control
| adequate depreciation and mainte-
| nance of the properties of the roads
will be included as a part of the oper-
| ating expenses or provided thru a re-
serve fund, in accordance with pr1ncl-
| pies and rules which the president
! will determine.
Section 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 re-
turn. Under this section the legal
rights of the railroads for possession
of its claim for the balance before the
court of claims is provided for and
any amount found due above the
amount that had been paid will bear
excess amount paid by the govern
ment would be recoverable by the
| government with six per cent interest
Provides Arbitration Board.
Section provides that any claim
| for just compensation which is not
adjusted under the terms provided in
| section one, will be submitted to a
board of three auditors appointed by
| the interstate commerce commission
whose members and official force will
be eligible for that service without
any additional compensation. These
| auditors will give full hearing to
! the road and to the government and
| will report to the president the
! amount due the road as just compen-
Sauon. A sum not exceeding the
/ amount so reported may be agreed
upon by the president and the road
| oliAhS Ills dSIeeIIleIil, eIlHeT the IeO-
eral government or the road may file
a petition in the court of claims for
final aScertainment of the amount OF
Just compensation and in the court
of claims proceedings the report OF
the auditors will be considered prima
facie evidence of the facts stated. The
just compensation of any federal con-
trolled road not making returns to the
interstate commerce commission will
be determined in accordance with
these provisions
Section provides that the return
OF any carrier will be increased by ar
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