New-York tribune., 1918-02-20
People Have Paid Price of
Private Control, He
Tells Senate
One Directing Head
Best, Says Senator
Others Hold Rate Is Too
High; Its Passage Ex-
pected Saturday

day bent itself almost exclusively tow
ard cxpcditing the Administration
Dill to govern Federal operation of
railroads.
Deoate on the measure was begun in
the House and continued in the Senate.
with leaders of both bodies planning
Its disposition before the end Of the
week. Late in the day the Senate
agreed to begin voting on amendments
Thursday afternoon, expecting passage
or the bill late that night or Friday.
IN the House it is planned to close
general debate Thursday and pass the
measure at least before adjournment
Saturday.
considerable amendment of both the
Senate and House Committee drafts
before final action was forecast bv to-
days discussion.
The principal addresses in the
Senate to-day were by Senators John
son, of California, and Townsend. of
Michigan, Republicans, both of whom
opposed the measure as now drawn. In
the House Representative Sims. of
tennessee, and Representative Ste
phens, OF Nebraska, Democrats, cham
ploned the draft of the House Com
mlttee. Government ownership Of
railroads was advocated by the Cali.
fornia Senator and by Representative
Stephens.
Senator Townsend pointed out manv
alleged defects in the bill. asserting
that 1t was not understood by many
committee members and that the rail-
roads were supporting the measure in
expectation of rate increases. He said
nc doubted whether the government
souid enforce the provision prohibit
iHg the railroads from paying dividends
higher than their regular rates.
Representative Sims urged particular
~ the adoption of provisions piv;nc
the President power to establish rates
and to retain control of the carriers
Two years stter peace shall have been
oeclared' He asserted that government
control should disrupt private manage
ment as little as possible.
senator Norris criticised what he
SNCeSSlNe compensation pro-
v'ded for the railroads and said the
provision Tor rate making by the Pres
'o9nS was unnecessary and unwise."
Under the Senates agreement to be-
GIN work en- amendments Thursdav
debate Will be limited to ten minutes
LOT eacn Senator from 2 to p. M
and after that to five minutes. Chair,
man Smith sought, but failed to obtain.
an agreement for q final vote Thuradov
Underwood Urges Amendments
Il think it is apparent that the bill
needs amendments" Senator Under.
wood, OF Alabama, declared. There is
no bill know of that has been pend
ing since the war began that so vitallv
anects the interests of the American
people" ~" "''
i would now take the inevitable next
step IN government control of our rs,1-
roads" Senator Johnson declared. "and
40 whatever might be essential to make
mat government control permanent
government ownership, or at least
leave the way open so that immediatolv
upon the termination of the war "'s,s ,s
might follow to its logical concms;on
what already we have partly done "
Advises One Directing Head
In support of his declaration for gov
eminent ownership, Senator Johnson
SAID that the railroads had broken
down under the stress of the last few
months; that, if the country was 20
nave ethclent national TRANSPORTATION.
the roads must be nationalized ond
operated by one directing head: that
the American people have paid the
price of private ownership" and. that.
despite barriers or obstacles. the ma.
tlon IS marching straight to the goal
OF public ownership, and the people at
last will come into their own
Senator johnson stated he was in
full accord with Senator Cumnins.
who, in recent speech, said that the
proposed compensation to be given the
railroads was unfair and unjust. He
argued that the maximum compensa-
tlon should not be paid the roads at
a time when all the rest of the nation
was being asked to make the greatest
sacrifice.
"What this proposed rate means"
added Senator Johnson, "is that the in
terest on the outstanding bonds of the
railroads will be paid in accordance
with the interest rates now fixed; it
means, in addition, that upon the stock
Of the railroads of the country will be
paid by the government of the United
States something in excess of per
cent per annum; it means that this
percentage in excess of 8 per cent per
annum is paid upon all the stock of
all the railroads; it means that this
percentage (and am speaking only Of
the minimum) shall be paid by the
people of the United States. not only
upon the legitimate issues of the stock
of railroad corporations, but upon
every issue of stock that has been
illegitimately issued - watered stock
estimated at almost so per cent of the
total stock of these corporal tons- took
representing nothing but the greed and
the avarice of railroad magnates."
III will write with tender hand" re-
piled Senator Johnson, "the obituary of
private management in the United
States. l will willingly concede that
the railroads had many difficulties to
surmount, and with all the difficulties
the railroads have been unable to do
the job. The government is doing the
job and the government has been called
on to do the job for all time"
Senator Norris characterized as "un-
necessary and unwise" the conferrinp