The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-01-04

NContinueu from page ID
an annual rate equivalent as nearly
as may be to the roads average net
railway operating income for the
I three years ending June 30, 1917.
This, the bin officially calls the
| standard return. This section pro-
vides that the net railway operat-
/ ing income is to be computed
| from returns to the Interstate
commerce commission, excluding deb
its and credits, arising from the &C
counts which are called in the month
! ly interstate commerce returns, '1eas-
ed road rents and miscellaneous
rents" ...-
Surplus Income to U. s.
No federal taxes in excess of taxes
assessed during the year ending June
80, 1917, are to be charged against
the revenue in computing the stand
ard return. Amy net railway operat-
ing income in excess of the standard
return is to be the property of the
United States. The amount Of the
standard return accruing during the
three year period is to be determined
by the interstate commerce commits
sion, whose certificate as to the
amount is to be taken as final and
conclusive for the purpose Of the
agreement and guaranty. During the
federal control adequate depreciation
and maintenance Of the properties of
the roads viii be included as a part
OF the operating expenses or provtd-
ed through a reserve fund, in accord
ance with principles and rules which
the President will determine.
Section 2 provides that IL no such
agreement is made with a road, the
President may nevertheless pay or
cause to be paid to any railroad while
under federal control, not exceeding
80 per cent Of the standard return.
Under this section the legal rights OF
the railroad for prosecution Of Its
claim for the balance before the court
Of claims is provided for.
Section provides that any claim
or just compensation which is not
adjusted under the terms provided In
section will be submitted to a board
Of three auditors appointed by the In
terstate commerce commission, whose
members and official force will be
eligible for that service without any
compensation. These auditors will
give a full hearing to the road and to
the government and will report to
the President the amount due the
road as just compensation. A sum
not exceeding the amount so report
ed may be agreed upon by the Presi-
dent and the road. Failing this agree
ment, either the federal government
or the road may file a petition in the
court of claims for final ascertain
ment of the amount of just compen-
sation and in the court of claims pro-
the report of the auditors
will be considered prima facie evil
dence Of the facts stated. The just |
compensation of any federal con- |
trolled road not making returns to |
the interstate commerce commission |
will be determined in accordance with |
these provisions.
Provide for Extensions.
Section 4 provides that the return
Of any carrier will be increased by |
an amount reckoned at a rate per cent |
to be fixed by the President, upon the
cost Of any additions and improve
ments made while under federal con-
troll by the carrier from it's own capt.
tai or surplus, and by an amount
equal to the rate accruing to the gov
eminent upon any advances made to
the road for the cost Of the additions
and improvements.
Section 5 prohibits any carrier
while under federal control, without
he Presidents prior approval, from
declaring or paying any dividends in
excess Of its regular rate during the
.hree years ending June so, 1917. This
section stipulates, however, that the
railroads that have paid no regular
dividends or no dividends during that
period, may, with the Presidents
prior approval, pay dividends at
whatever rate the President may de-
Big Revolving Fund.
Section appropriates $500, 0O0, 900
which, together with any funds avail
lble from any excess earnings of the
may be used by the Presi-
lent as a revolving fund" to pay ex-
,enses Of the federal control on any
leficit of q railroad below the stand
lrd return and to provide terminals,
engines, rolling stock
md other necessary equipment. These
improvements and equip
nent are to be used and accounted
or as the President may direct and
o be disposed of as congress may
hereafter provide. The President may
ilso order any road to make any ad-
litions and improvements. He may
rom this revolving fund advance to
Gla AAau al VI any part Oh the 0A~
iense Of the additions and improve
nents so ordered and constructed by
he road or by the government. These
.dYances are to be charged against
be road and to bear interest at sucn
rate and be payable on such terms
s the President may determine, so
hat the United States may be fully
for any sums advanced.
Any loss claim to accrue to any
cad by reason of any of these addi-
ions or improvements may be
by an agreement between
he president and the road. Failing
his agreement, the amount of the
oss will be ascertained under the
erms provided in section 3. From
he revolving fund, the President
nay expend whatever amount he
nay deem necessary or desirable for
construction, or utilization
nd operation Of boats, barges, tugs
nd other transportation facilities on
he inland and coastwise waterways
nd may in the acquisition. operation
nd use Of these facilities create or
mploy such agencies and enter into
UGH contracts and agreements as he
hall deem to be in the public inter
st.
Financing Problems.
To provide funds, for maturing