New-York tribune., 1918-03-15
r. X. Bill Passed,
Wilson I axes Up
Control Plans
Confers With McAdoo on
Organization of Govern
ment Administration

WASHINGTON, March 14-Plans
for future organization of the govern
ment railroad administration under
the railroad control bill, finally passed
by Congress to-day, were discussed to-
night at conference between Pres
ident Wilson and Director General
McAdoo.
One of the first big tasks will be
making contracts with @each railroad
company for government compensation
on the basis provided in the bill.
Under the direction of John Barton
Payne, chief counsel John SHELTON
Williams, finance director, and c. A.
Prouty, chief of the division of ac-
counts. the negotiation Of these con-
tracts will be undertaken Immediately
1t probably will take many months to
complete them.
With a fund at his disposal with
which to administer the railroad af-
fairs. Mr.. McAdoo now will fix the
salaries OF his assistants, most oil
WIOul nave SCNCICu NOlluCNhlOlS w I'LL
railroads. Heretofore the expenses of
the railroad administration had been
borne from an allotment from the
Presidents emergency fund.
Provision will be made for the $780,
100000 revolving fund established by
the bill in determining the amount of
the third Liberty Loan. The Treasury
has sufficient funds to care for minor
drafts, particularly since clearing
house for railway earnings and ex-
penses is to be established and pay
ments to roads will be on the basis
of the difference between actual earn
ings and the guaranteed rate.
Congress finally disposed of the
Railroad Control bill to-day when the
House agreed to the conference re
port adopted by the Senate yester-
day The bill now goes to the Pres
ident The House vote was BOB to 20.
The bill was returned to conference
by the Senate to force elimination or
provision inserted by the conferrees 5
limiting the power Of the states to tax
railroad properties. This provision
was taken out and the Senate passed
the bill yesterday.
The measure compensateS the rail
roads for the use Of their properties
during the war on basis of their
net income for The three years ending
June 80, 1917, limits federal operation
to twenty-onc months after the war
authorizes the President to initiate
rates, subject to the approval of the
Interstate Commerce Commission; ap
propriatcs $500 000,0 900 as a revolving
fund for the director general, anC
places all Short lines" under fedora
control
Railroads were ordered to-day by
Director General McAdoo to make al
inventory of materials and supplies OF
hand December 81, 1917, when private
control ceased, for use in connection
with government administrator O
purchases, additions and bettermcnt
and railroad financing.
The inventories must be begun b.
May /, according to the order, am
arc to be adjusted to show conditions
on December 81. If inventories hav,
been taken since that date or within
ninety days before then, they may b.
used as the basis for the report.
Some decision soon by the Interstate
Commerce Commission on the pendn,
IS per cent freight rate advance i
indicated by recent conferences be
tween Director General McAdoo an,
members Of the commission.
The Director General thinks takin,
over of the railroads by the govern
ment does not interfere with norma
disposition Of the case and other rat
cases now before the commission.
If Mr. McAdoo decides to ask fo
higher rates, he believes it will b.
necessary for him to initiate new pro
ceedings before the commission. dc
spite the pending application.