Evening journal., 1918-01-03
D. 5. MAY CO.lTROL
R. R. Stock TRADING
Draft Also Empower rs
McAdoo 10 Absorb Sccuri.
tics for Improvements
RADICAL GOVERNMENT
OWNERSHIP OPPOSED

WASHINGTON. q. c., Jan. San ef-
fort by the radicals In Congress to
provide for permanent Government
ownership OF railroads when the
Presidents railroad legislation Is In
Congress Will be opposed by all The
force Of the Administration.
The President holds the present Gov
eminent control Of the roads to be a
war measure and does not consider II a
step toward Government ownership,
nor Is he willing TO have the present
action complicated by a discussion OF
that policy.
Although the Administration bill
still Is in process OF being drafted. the
more important Of its features were
outlined today. and while Il ~ held
that all OF these provisions are tenta-
tive and subject to revision, or elm
nation before the bill actually Is in
troduced, they are believed 10 repre-
sent the views OF men best info med
on the measures required. The chief
provisions, II is understood, will be:
Authority for the Government,
through William G .McAdoo, to alb
sorb railroad securities issued by
the roads, with Government sanc-
ton, for current Improvements.
Authority will be granted the
President TO employ whatever
agency he believes necessary TO
supervise and control the trading
In railroad stocks and bonds. This
would permit Mr.. McAdoo TO or
ganize a Government corporation
for such a purpose, just as Food
Administrator Hoover organized the
S50,OO0O0O United States Grain Cor
poration.
An appropriation OF si5o00O0OO
for emergency measures, such as
expenses OF administration Of Gov
eminent control and the purchase
Of emergency equipment chiefly
locomotives.
Provision for a board Of arbltra-
ton 10 determine compensation for
railroads which refuse 10 sccept
the three-year average aud those
which failed 10 yield dividends dur
ing the three years ending June
80, 1917.
II the companies decline TO accep
the compensation o. the board Of ar
b.tratlon and resort 10 the courts, the!
will receive 70 per cent. OF the amount
agreed upon by the board. leaving thl
courts 10 determine how much allow
the remaining % per cent. is to b
paid.
The existence OF Government con
troll Is 10 be left until Congress other
wise directs" which would mean unit
Congress repealed the legislation.
Is neld, the provision during The per
iod Of the war" would not be appro
PIRATE as the railroads could not b.
turned back into private control owe
night. the headiustments being Of sucl
q bOad and Fundamental nature. an,
even a six month period might not b
adequate.
Determination Of the charges 70 b
made against individual roads for I'm
proNements, and extensions made h
their properties by the Government
will be left to the board OF arbitra
ton.
The bill. It Is understood, viii fol
low very closely the ideas embodied b,
the President in his statement takinI
over the roads. II was stated tOda
that the President bad indicated rattle
clearly the provisions OF any legs
latlon and the bill simply will pu
those ideas into legislative form.
The chief point Of interest anon
members OF Congress and officials
the provision In the bill fixing tn
period Of Government control 10 {
commended that the provision In tn
army appropriation act Of August @
1916, under which the President acted
through the Secretary Of War. does no
restrict Federal operation Of the rail
roads for the period Of the war; tina
the President had constitutional powe
10 seize the roads for military pur
poses, and that the powers now bein
exercised carry transportation o
troops as incidental to other uses. L
most OF the war-emergency Legislation
the life OF the law Is liked. the food
control act providing that food contro
shall cease sixty days after the termI
nation OF the war.
II Congress determines that Fedora
control shall prevail until "CCngres
otherwise directs" it might be som
time before Congress repealed the ac