Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-02-08
OVER 5 PER CENT
IS ASSURED ROADS
UNDER NEW BILL
viii Be Assured of S945, 000,-
600 Annually Which Chair
man Smith Says Reflects
Neither Poverty Nor Riches

WASHINGTON. Feb. Chairman
Smith, of the senate interstate COM
merce committe. in reporting favorably
10 the senate today the administration
railroad bill, estimated that under the
measures provisions the government
| will guarantee annually to the railroads
of the country S945. zoo. 900. which will
represent return of $50 per cent This
he says reflects neither poverty nor
| riches but the committee believes a
majority of the railroads will accept
these terms as Just and fair measure
ftheir constitutional rights"
An agreement on the bill was reach
ed by the committee last Saturday. but
minority reports are to be submitted by
Senator Cummins and La Toilette. Ad-
ministration leaders plan to call the bill
up for consideration next Monday.
Your committee is of the opinion
that this is the time for war emergency
legislation and not the time 10 settle
the many controversial and veNed queS-
tions concerning our future transporta-
ton policy" Chairman Smith says in
prefacing his report he then takes up
the compensation section and adds:
About 20 great operating railroads
do over 90 per cent of the railroad bust
ness. The committee believes that
most of these great railroad carriers
will accept these terms as a just and
fair measure of their constitutional
rights. Section one further provides
that ordinary taxes, national and state,
shall. as now, be paid out Of operating
revenues; 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 tust portion of the war burden
Section one also requires that each
agreement shall contain adequate and
appropriate provisions for the mainte-
nance and depreciation of the property
and the creation Of reserves so that
.he properties may at the end or FEDERAL
control be returned to the owners in
condition substantially equivalent to
their condition when taken over by the
government.
Chairman Smith explained that in
.ase OF controversy over compensation
the bill permits an appeal.
The committee recommends, the re-
mort saws. that improvements made by
she government while the carriers are
under government control should 90 to
the railroads when they are returned to
the security holders. This should be
arranged through an agreement between
the carriers and the president.
Discussing the provision inserted by
the committee providing for the ter
mination of government control eighteen
months after the peace proclamation
has been issued, the report says:
ut is possible that certain conditions
NAV arise from federal control which
will need adjustment before the proper
ties are returned to their owners, and
a reasonable period should intervene in
which these conditions may be met and
adjusted It may be that the nation
will be unwilling to return to the con-
ditions obtaining before the assumption
of federal control. Legislation may he
demanded radically changing the re-
lation OF the government TO the rail-
roads from that now existing in the
interstate commerce act as amended.
Your committee has suggested period
Of eighteen months. and they believe it
viii be found adequate for that pur-
pose.
There is also provision to the eff
feet that the president may prior to
July l, next, relinquish control of such
transportation systems as he may deem
not needful or desirable, and may. there
after on agreement, relinquish all or any
part of any system of transportation.
The section also contains general
provision that the president may re-
linquish all railroads at any time when
he shall deem such action needful or
desirable"