New Britain herald., 1918-01-09

agement Another difficulty was the
shortage of labor. In many cases, he
said. one-eighth of a railroads en-
ployes were taken by the draft or in
dustries paying higher wages.
Senator Cummins asked Mr.. Krutt-
schnitt about the advisa bilitw of bas-
ing the railroads compensation on the
market value of the stocks, which
opened a lengthy discussion of the
value of securities. Mr.. Kruttschnitt
said the value of the stock of the
Southern Pacific had fallen fifty-five
points in the last ten years and in that
period the company had put $780,
100000 into the property, showing
that the market quotations have little
or nothing to do with the intrisic
value Of the property.
Grain men of the country. Mr.
Kruttschnitt said, were the slowest to
comply with the war boards recon-
providing for the heavier
loading of cars 1t was only after
Food Administrator Hoover, who had
the power the railroads had not. is
sued an order providing that no cars
of grain be handled unless fully load
ed, he added. that a change was
brou ght about.
When Mr.. Kruttschnitt has COM
pleted his testimony tomorrow before
the senate committee, Samuel Rea,
president of the Pennsylvania; George
Shriver, vice president of the Balti-
more & Ohio, and Frank Trumbull,
chairman Of the railroad executives
advisory committee, will be called.
George w. Anderson, a member of
the Interstate commerce commission,
who prepared the text of the govern
ment- control railroad bill, appeared
today before the house committee on
Interstate and Foreign Commerce,
which began it's hearings on the Ad-
bill He devoted himself
chiefly to explaining the pensation
feature and did not get far in his eX-
plantations when the committee ad-
journed to attend the joint session of
congress.
Opposition to the three-year period,
suggested as the basis for compensa-
ton developed among the mem bers,
who demanded to know why this
period had been selected. Mr.. Ander-
son informed them that other bases
for compensation had been considered,
but the one in the bill, the average
annual net income of the last three
years, seemd to be the fairest to all
concerned.
In reply to a question by Repre-
sentative Esch as to why these years
had been selected Mr. Anderson said:
Because, on the whole, that period
seemed the most practical of apphca-
ton, though I will admit that it was
not settled upon without first consid-
ering other bases. The financial stu
alton has to be considered as a part
Of the railroad problem, and financial
conditions must be sound if the war
program is to be pursued most salts
factorily.
IT considered whether we could ar
rive at basis by considering the
question of the value of railroad Sc
curities and other property. I found
that led into a blind alley and
dropped it. I finally decided that the
average of the years 1915, 1916 and
1917 would be fair both to the govern
ment and the railroad owners"
Mr.. Anderson gave it as his opinion
that states and municipalities could
tax the railroads while they were UNI
der government control.
Together with the labor phase of
government operation, the railroad
administration today considered
financial problems with which the
government will be forced to deal
shortly. From scores of roads came
reports on the estimated amount Of
additional capital to be raised this
year by issues of securities. These
will be compiled by Interstate Com
merce Commissioner Daniels and pre-
sented by Director General McAdoO
late this week, to be used as a basis
for computing the big sum which
Congress vii ask to appropriate to
absorb the companies securities.
At a conference at the offices of
the director general Of railroads prog
ress was made toward an agreement
between the Denver & Rio Grande
railroad company and the Equitable