New-York tribune., 1918-01-05
Opposition to Exten-
sion of Control Be-
yond End of War 2
Is Expected
Pledge Made to
Stockholders
Penalty for lnterfer-
ence With Lines Will
Prevent Labor Trou-
bles, Is Belief

WASHINGTON. Jan. Legislation
to provide the governments operation
OF railroads and TO guarantee the car
riers compensation on the basis of
their average net operating income for
the last three years was asked of Con-
gress to-day by President Wilson in
an address 10 both houses in Joint ses-
sion.
1dentic bills embodying his recon-
mendations and carrying an appropria
tion of S500,0O0,000 as "revolvine
fund" were introduced Immediately in
both Senate and House, and an attempt
Will be made to rush them to prompt
passage.
Though the Presidents address met
with general approval among Demo
Gratis and Republicans alike. opposi-
tfon IS expected to develop over a,pro-
vision in the Administration bill that
Federal control shall continue after
the war indefinitely. or until Congress
orders otherwise. and over details Of
the compensation basis
In his address to Congress, President
Wilson, announcing his action in TAX
ing over the railroads, praised the way
IN which railroad executives went to
work in an attempt to unity their lines
under private management, but saiG
the war emergency demanded govern
ment action, because. only under gov
ernment administration could an alb
solutely unrestricted and unembar-
rassed common use be made Of all lines
and facilities.
Owners Not to Suffer
He promised thal "the common ad-
n1nistration will be carried out Will,
as little disturbance of the present op-
Grating organizations and personnel Of
the railways as possible" and repeated
the assurance given in his proclama-
ton last week that owners of railroad
securities should not suffer financial
loss because of the new plan Of opera
ton.
While there was nothing in his mes-
sage which was not called to the coun-
try's attention in his proclamation tax
ing over the roads, and in the state
ment of legislation at that time, there
was more light thrown on the Admin
lstration's policy in the bill prepared
for Congress and brought to the Capi-
toi Immediately after the Presidents
vfsit by William G. McAdoo, Director
General Of Railroads.
This measure was at ouca introdured
IN the House by Chairman Sims of
the House Interstate and Foreign Com
lnerce Committee, and in the Senate bv
Acting Chairman Z. .. Smith. of the
Senate Interstate Commerce Commit
tee. The House bill was a carbon copv
or that IN the Senate, and both were
brought to the Capitol by Mr.. McAdoo
1t is understood they were drafted by
George ". Anderson, Interstate Com
merce Commissioner
In addition to appropriating $500.
ooo,OO0 and providing for the CONNER
satlon basis, under which the govern
menr guarantees an aggregate return
OF some s9O0,000,O00 year, the meas
ure scts rorth IN detail the conditions
upon which government operation ;s -,
be carried on, and in addition to snec,.
ned powers given the Presideu wou,d
authorize him to exercise other power.
necessary TO maintain practical gov
ernmenC operation and TO delerate his
authority to any agency.
Corporation Is Planned
Under the last provision the -res,
oent Is expected to issue an order
transferring to Director General Nc
adoo all functions vested in the CHIEF
executive. This will enable the direct6-
genera TO organize corporation for
handling railroad securities in accoya
ance with plan now under cons;ders-
ton.
Railroad officials are expected to
ulse number OF notifications of the
accounting method prescribed bv the
olll Tor reaching the standard return
oasis' put officials expect the scheme
as ou1llned IN the bill probably will
be followed in the main.
The bill says;
The amount Of such standard re-
turns as accruing during said period
OF three years shall be determined
py the Interstate Commerce Com
mission and the certificate of said
commission as to the amount of
sald net railways operating income
shall Tor the purpose of such agree
ment and guaranty be taken as final
and conclusive"
Some discussion is looked for over
the bllIs provision that new Federal
taxes under the war revenue act are
not TO be charged against the revenue
IN computing the standard return as
are ordinary taxes. The effect of this
VIII be to require railroads to pay
war taxes out Of their government
compensation
The bin also provides for g. court
OF arbitration of three auditors, to be
appointed by the Interstate Commerce
Commission.
Larger dividends than during the lss.
three years are prohibited without the
approval of the President.
drastic provision for the punish
nfent Of any one who nterferes with
the government operation in any way
is provided. While aimed at ,ths OH
cials and railroads corporations, it will
also apply 10 labor. This clause states,
IN effect. that any one who shall know
inGly interfere with or impede posses