Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1918-02-08
ROADS PROFIT
5.32 PER CENT
This Figure Is Indicated By
Administration Traf-
fic Bill.

Washington, D. c., Feb. Chair
man Smith of the senate interstate
commerce committee, in reporting fav
orably to the senate today the admin
Dstration railroad bill, estimated that
under the measures provisions the
government will guarantee to the rail
roads annually $949, 900, 900, which will
represent a return of $50 per cent
This, he says, reflects neither pow
erty nor riches" but the committee
believes majority of the railroads
will accept these terms as just and
fair measure of their constitutional
rights"
cUMMiNs DissENTs.
An agreement o.. she, hill was reach
ed by the committee last saturday but
minority reports are IL ,e submitted
by Senators Cummins .ld LaFollette
Administration leaders plan to call the
bill up for consideration next Monday
About seventy-five great operating
railroads do over 80 per cent of the
railroad business" says the report
"The committee believes that most OF
these great railroad carriers will &C.
cept these terms as just and fair
measure Of their constitutional rights
TO PAY WAR TAXES.
Section 1 further provides that ordi-
nary taxes, national and state, shall.
as now. be paid out Of operating rev.
enues, but war taxes accruing under
the act of October 3. 1917, are to be
paid by the companies out of their
own funds. or charged against the
standard return. in other words, the
holders Of railroad securities are to
bear their own just portion Of the war
burden. Section 1 also requires that
each agreement shall contain adequate
and appropriate provisions for the
maintenance and depreciation of the
property and the creation Of reserves
so that the properties may at the end
of federal control be returned to the
owners in condition substantially
equivalent to their condition when
taken over by the government"
PROVISION FOR APPEAL.
Chairman Smith explained that in
case Of controversy over compensa-
tion the bill permits an appeal to the
court Of claims. The committee rec
the report says, that i'm
provements made by the government
" AlIC IAc Vail diC uuOCl SONSlA
ment control should go to the rail-
roads when they are returned to the
security holders.
Discussing the provision inserted
by the committee providing for the
of government control
eighteen months after the peace
has been issued, the re-
port says:
ut is possible that certain conditions
may arise from federal control which
will need adjustment before the prop
critics are returned to their owners
and reasonable period should inter-
vene in which these conditions may
be met and adjusted 1t may be that
the nation will be unwilling to return
the conditions obtaining before the
assumption Of federal control.
CAN GIVE BACK ROADS.
There is also provision to the ef
feet that the president may, prior to
July l. 1918, relinquish control Of such
systems as he may
deem not needful or desirable and
may, thereafter on agreement, relin-
luish all or any part of any system
Of transportation.
"The section also contains a gen.
eral provision that the president may
relinquish all railroads at any time
when he shall deem such action need
,ul or desirable"