New-York tribune., 1918-02-12
Asserts Measure Would
Plunge Nations Business
+. Into Chaos
Smith Urges Passage
Senator Asserts Grant OF
Power Is Necessary to
Garry on War

WASHINGTON, Feb. 11.--Enactment
Of the Administration railroad bill with
as little delay as possible because Of
its Importance as war measure and
its relation to the nations financial
problems was urged by Chairman Will
lam A. Smith of the Interstate Com
merce Committee to-day when consid
GRAFTON of the measure began in the
Senate.
Debate on the bill opened with few
Senators present. Many, however,
have announced their intentions of dis
cussing the measure, and Administra
tion leaders admit a final vote will
hardly be reached much before the end
of the month.
Senator Smith reviewed the various
steps taken to meet the transportation
situation when the country went to
war, eliminating in the government
taking over control of the carriers. He
urged that the present time was in
opportune for an attempt to work out
and correct defects in the transporta-
tion system. Radical changes, he add
ed, had been made imperative in order
to meet the crisis, and because of that
tact every necessary grant of power
should be given to accomplish this
purpose, and the powers thus granted
should be used with all the wisdom and
care that the executors and admins
traitors of these powers can command"
Bill Delayed in House
Because of President Wilson's unex-
pected visit to the Capitol and the rush
of other business, the House was un-'
able to take up the bill to-day. Chair
man Sims announced he would attempt
to obtain an agreement tomorrow for
consideration of the measure, to begin
later in the week, probably on Thurs
day.
Provisions Of the Senate draft of
the Administrations railroad bill,
which will enable President Wilson to
make rates and control the railroads
for eighteen months after the war.
were denounced in a minority report
filed to-day by Senator Cummins of
the Interstate Commerce Committee.
The bill, he declared, is dangerously
imperfect" and threatens the funda-
mental principles upon which this gov
ernment is founded.
The provision authorizing the Presi-
dent to initiate rates, subject to an ap-
peal to the Interstate Commerce Com
mission, Senator Cummins declared,
was bound to overthrow our rate
system and plunge our business world
into chaos"
ut is utterly impossible" he added.
ITO conceive an instance wherein a
power of that kind could be properly
employed. 1t is simply another evi-
dence of a constantly increasing in
clnatlon to grasp for authority, and
to some of us it seems like the end of
democracy rather than the beginning
of greater freedom"
Compensation Feature Attacked
The standard of compensation pro-
vided in the bill was declared ex
cessive by the Iowa Senator, who con-
tended that, under its provisions, the
aggregate guaranteed operating income
would amount to more than $3.50 ,OOO,-
600. This, he asserted, was SITS, ,OOO,-
600 more than was fair and Just com
pensation"
"A simple computation shows that
the aggregate proposed guarantee will
pay 90 per cent a year upon the mar
value of all the capital stock of all the
railroads in the country" said Senator
Cummins.
No objection is made to government
possession and operation, the Senator
said, the only criticism being that "the
change was not accomplished immedi-
ately after the declaration of war, so
that, long before this, the confusion
incident to the transition would have
been overcome"
Amendments to the bill covering the
objections outlined in his minority re-
port were introduced by Senator Cum
minis. He proposed that a board of
tive-an engineer, financier, trained
railroad man, shipping expert and a
lawyer--take over operation of the rail-
roads after the war and retain control
for eighteen months.
Smith Wants Bill Rushed.
Because of the importance of the
railroad measure, Mr.. Smith asked the
Senate that it be given right of wav
over other legislation, so it might be
disposed of as soon as possible and
prevent embarrassment in the tinan-
cial world"
Railroad operations during the war
have made radical changes imperative
to meet the emergency" said Chair
man Smith. Everything, every force
and energy of the American people
should be held in readiness for the
service of the government in protect
ing itself and in maintaining its in
stitutions."