Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1918-01-04
TELLS NEEDS
AND AIMS IN
TAKING Step
President, in Speech to Con,
gress, Proposes Compen-
sation for Lines.

Washington, Jan. 4.-President
Wilson spoke today before con.
gress ON administration Of the
railroads.
Bills to carry out the presidents
ideas already had been prepared
under the supervision Of the de.
partment Of justice and were i'm.
mediately introduced with plans
for prompt consideration I'm both
house and senate.
To guarantee proper returns to
the roads during the period Of
government operation, the presi.
dent recommended that congress
provide compensation at the ratio
Of the same net operating income
rs the roads have received for the
three preceding fiscal years.
To provide for proper maintenance
of the roads and their return to own
ers in the same order as the govern
ment takes them over, the president
recommended legislation to authorize
their upkeep and betterment during
the period Of federal operation. Leg
islation to this effect is all contained
in the administration bills which
would appropriate $500, 900 900 fund
for government operation.
Only by government operation, the
president told congress, could the
unity necessary to the country be OBJ
tanned, and he added that existing or
CARNATIONS Of the railroads shouldsb be
disturbed as little as possible.
Finance Is Big End.
The president laid especial stress
on the guarantees to the roads and
their stockholders, saying one Of the
strong arguments for assuming con-
troll of the railroads at this time Is the
financial argument. It is necessary
that the value of railway securities
should be justly and fairly protected,
he continued, and that the large imam
cial operations. every year necessary
In connection With the maintenance,
operation and development Of the
roads should, during the period Of the
| war, be wisely related to the finan-
cial operations of the government. It
is also an obligation of public con-
science and public honor that the pri-
vate interests disturbed should be
kept safe from unjust injury, and that
all great financial operations should
be stabilized and coordinated with the
financial operations Of the govern
ment.
Private Ownership Comet
While the president in his address
laid stress on the importance of prop
erty preserving the properties for
their return, the administration bill
specifically provides that government
control shall obtain throughout the
war and until congress shall there
after order otherwise"
Many government officials and rail-
! road men made no concealment In
their belief that the railways never
would return to private hands.
Precludes Strikes.
One section of the proposed law,
| considered very significant lays a
! heavy penalty on any one who i'm
pedes, possession, use, operation or
control" of the roads. 1t Is regarded
as precluding strike. The bill also
| proposes that the government shall
pay compensation at an annual rate
as near as possible to the net operat-
ing income for the three years ended
June 80, 1917.
In the house the bill was intro
duced by Chairman Sims of the in
terstate commerce committee which
will meet Monday to consider it.
In the senate it was introduced by
Senator Smith Of South Carolina and
will be considered by the senate COM
mittee also on Monday.