New-York tribune., 1918-02-22
Senate Votes
For Limited
r. K. Control
Continued from page /

amy Bolsheviki uprising in the United
senate. liardwick said Senator
SMITH. OF south Carolina, in charge of
the bill, would INTRODUCES an amend
ihcht 70 insure short lines not taken
over by the government the same treat
ment as the large systems.
Mr.. llardwick contended it was not
necessary for the government to as
sumo control over The entire traospor
tatlon facilities. Congestion had not
Deen relieved under Director General
McAdoo, ne said, nor had the problem
OF pooling been solved.
Opposed Government Control
Senator llardwicls said he was op
posed to government control of rail
roads and could not support tho hill
ne would have voted for il if ne had
Been convinced that there WAS no other
way TO preserve the railroads. he said
put he believed the same rcsuls could
be obtalncd IN an easier way.
speaking IN support Of the bill. Sen
ator Vardaman, Democrat. of AIssis-
slppl', approved the Pres dents action
IN taking over the railroads. but op
posed any permanent legislation at
thus time which would result in gov
cr0ment ownership.
Senator King, of Utah, contended
that everything the government az
tempted cost more than if undertaken
BY private interests. That was denied
by Senator Johnson of California, who
referred TO the Panama Canal.
~ Tile a plea. as an Offset. Of Hog
Island against the Panama Canal" in
terruptcd senator sherman. of liinois.
"lhe Panama Canal is the only in.
stance know wh.re the taxpayer has
rot been skinned l., re bone. &"
"Jhc Hog Island s:tca.ion," replied
Senator Johnson, "rcsu,tea not from
the government doing tho sovk. but
because great financial interest. and
the great captains of finance arc Lo'ys
the work under ii government contract
on can't compare the Panama Canal
to Hog Island"
Opposition in the House
Opposition to the House draft Of the
Dill, particularly its provisions for
compensating the roads, determining
rates and fixing the period of govern
ment retention after the war. was
voiced to-day by Representative Esch.
OF Wisconsin,, ranking Republican
member of the Interstate Commerce
Committee
Representative Esch. speaking Tor
the minority of the committee. de-
clared the proposed rate OF compensa-
ton was too high; that the power to
initiate rates should rest with the In
terstate Commerce Commission, rather
than with the President. and that the
roads should be returntd to their own
ers one year or less after the proca-
nation OF peace, instead Of two years
as proposed by the House bill
"OWners OF our railroads should be
content to receive a guarantee Of pay
ment OF all fixed charges" Representa-.
tive Esch said. "includiny operating cx-
penses, taxes and interest and regular
dividends on outstanding stocks ANY
surplus above such payment ought
either to 20 TO the government to aid
It In meeting the guarantee. or be
equally divided between the owners and
the government
The minority also believe that the
rate-naking power shoald remain in
the hands of the Interstate Commerce
Commission. 1t is the one body under
our goVernent that has mad the regu-
latlon OF railroads. including their
rates. IN charge. 1t is not necessary
TO give 20 the President. even in time
OF war, the power TO initiate rates.
NO other nation at war has changed its
rate making power. No other nation
has given To Single individual this
power, not. even autocratic Germany.'
Ny. Esch sad lnat one year after the
proclamation OF peace would ALLOW snf-
ilclcn. time for Congress TO pass Tho
Necessary legislation for the adjust
menf of the financial relations between
the government and the carriers and
arrange Tor the return Of the roads to
their owners.