The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-03-14
Clause Limiting the Taxing
Powers of the Several
States Stricken Out
EIGHT SENATORS
VOTED IN NEGATIVE
Final Action-Period of Control IS
Twenty-one Months and President
Has Power to Initiate Rates.

has Power to Initiate Rates.
WASHINGTON, March 1.-THE sen
ate last night adopted the con
ference report on the administra
tion railroad control bill by a vote
of IL to 5 after it had rejected and
the conferees had eliminated a pro
vision limiting power OF the states to
tax the carriers while under federal
control The bill now goes to the house
for final action, perhaps today. Not
| ing against the report were Senators
Borah OF Idaho, Cummins of Iowa,
| Gronna of North Dakota, johnson of
| California, Kenyon of Iowa, Norris of
| Nebraska and Townsend of Michigan,
Republicans, and Gore of Oklahoma,
| Democrat.
| Elimination Of the tax provision re
suited from initial use of the new sen
ate rule prohibiting conferees from
writing new matter into bill. 4
point of order by Senator Freling-
huysen OF New Jersey, Republican,
against the tax clause, was unheld by
| Vice President Marshall and sustained
by the senate, 81 10 % The bill then
was returned to conference, where the
original tax section, providing that
state taxes and railroad regulations
shall not he interfered with SO far as
they are consistent with federal con
troll, was reinserted Other principal
provisions OF the bill retained as the
eonferees adjusted them are those for
compromising the railroads on the basis
of their net income for the three years
ending June so, 1917, involving an in
timated federal guarantee OF about
$945, o00, 600 annually, limiting federal
operation to q months after the war;
authorizing the President TO initiate
rates, subject to approval by the inter
state commerce commission. appropriate
ing $500, 10000 for revolving fund
for the director-general and placing all
short lines within the federal sys-
II tfn ""fi "f""~t
In the final debate Senator johnson
of California said the bill was ''unfail
. and unjust to the people and outra-
, geously generous tothe railroads, while
senators Townsend of Michigan. Re
publican, and Cumanins of Iowa, Repub
, lican, reiterated tisair criticism Of somt
. sections of the bill Some Of the bill ,.
principles, Senator Townsend said
are subversive OF good government
lit is never proper for a republic Il
confer blanket power on an eXecutiv,
or railroad director, said the Michi
! gan senator. 81 sometimes think ",
are towards. A bill is introduced ant
, someone raises the flag Of patriotism
: and says unless we support this bill
we are not supporting the President
| would rather be for my country.
will support the President wheneye
Il that is necessary for the successful
prosecution of the war
' Senator Cummins gave the senate
final warning that he believed the com
e Ipensation proposed for the roads woul
II do more to SOW the seeds OF discon
u tent than any other measure ever en-
Il acted BY the senate. "Mv objection
to the bill, said the Iowa senator
e ''is that it gives un just, unfair and eX
L cessive- compensation to large per
/ centage of the transportation facilitie
/ Of the United States. II it We're neees
e sary in order to continnc the govern
% ment operation of the roads to pa
l. them this compensation, l might agre
H. to the provision, but it is not neces
d sary to pay the roads the sums o
. money here authorized.
Y. eve are really doing it because
4 we give them less compensation, til
t railroads will go to the courts an
c ask for more and he added that i
n five years the alleged excessive con
T. pensation will he q billion dollars NOR
IS ethan can be defended or would be a
"a lowed Ivy any court.
lie Criticizing the rate ma king prov
IN sion, Senator Cummins said it was I
or be expected that the railroad manager
whom Director General McAdoo ha
is gathered around him will continue t
V: urge rate increases. Within six month
o. the senator predicted the rates will /
TT substantially increased.