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Show Administration Measure Is Introduced by Chairman Chair-man Sims After the Address of the President Presi-dent and Carries Full Weight of the Chief Executive Behind It. PROMPT ACTION WILL BE TAKEN Many Statesmen Ex- j press the Opinion That Government Control ! of the Railways Will j Not Cease With the War Unless It Is a Flat Failure. By Internationa! News Service. WASHINGTON, Jan. 4. The American Amer-ican railroads are not to be turned back j to their private owners until congress decrees, under the terms of the administration admin-istration 'a railroad bill introduced today. to-day. The measure, introduced in the house after the president made his special address ad-dress to congress, carries behind tho full weight and influence of the chief executive. Section 13 of the measure roads: "The federal control of transportation transportat-ion systems herein and heretofore pro- vided for .shall continue for and during j the war and until congress shall there- j after order otherwise." i The bill was introduced by Chairman Sims of the house interstate committee, who will handle the legislation in the lower branch. The measure is understood under-stood to have been prepared after consultation con-sultation with Director General Mc- Adoo.( , Will Compensate Owners. It carries with it guarantees that the government will compensate the private owners on the basis of the ' 1 net railway rail-way operating income" for the three years ending June .10, PH7, stipulates that the government shall maintain tho roads in as good condition as they fiavo been in under private conlrol; and authorizes au-thorizes the use of government funds up to $o00,00n,u00. Prompt action will lie taken by congress con-gress in the passage of the measure though there are objections to the bill ' from the more radical elements. Among these the content ion is that the rato of compensation i.s too liberal. There is also a demand for outright government govern-ment ownership. For this Senator Hiram Johnson of California flatlv declared de-clared today. He neld that, the state rf affairs which made necessary government govern-ment operation of the. roads proved the inability of the private managers to meet an emergency. Closely Followed. A full attendance of both the house and senate and well filled galleries heard the president h speech. While then was lacking t!mt fervor that at tended the reading of his epochal war messages aga i list, ( -ermany and Austria lliis address was closely followed and li hera My a pplaiided. While the president was before, eon -L'ress Director General McAdoo, at the other e no of t Jin ci fy, was wrestli ng with t lie gi ga nt ic task of rn nn ing the roads and was issuing drastic orders U) overcome the traffic congestion. With a sweep nf the, pen he took over the doc ;s along a go"d pa rt of New York 's waterfront, and Washington wan i f u II of report s ton igh t t iiat the t ermi -mil facilities at other Atlantic, seaports are to be sei.nd. F'ol lov ing a s'-conrj ron ferenee with the repp"-eiii a t i ves of the rai I road brotherhood1-' Mr. M'-Adoo announced an agreement for creation of a wage board to handle all quesT ions rebi t i ng to the wa geH c,f the einplnye'-s during t ho period of govern no-nt opera 1 ion. No Misunderstanding.. Section 1?, of the bill is interpreted : by every con gres-:ra n who has seen it as meaning that the railroads not go back to their privat" owners unless ' congress shall specifically and affirmatively affirma-tively s-o provide. ( om men ting on it, j Democrat ie Deader K it chi n said : I ''There can be no misunderstanding ; of that, section. The simple failure of congress to act would continue govern- ; ment operation. One filibustering sena- (Continu'31 on Page Tbjee.) T CONGRESS TO DECIDE THE FATE OF ROADS (Continued from Page One.) tor could perpetuate government control for years." Both representatives and senators were so intent on President Wilson 's urging of guarantees and tho language of the bill providing those guarantees, that not until late in the afternoon was the inconspicuous little section discovered. discov-ered. View of Chairman Sims. vVhen it was, it monopolized interest. Chairman Sims said: ''That provision means just what it says. Wc cannot tell what conditions will exist when war ends and we must receive the right to legislate as then seems best. "We are entering the greatest test of government ownership ever presented. present-ed. If government operation succeeds the sentiment for ownership will .be so strong that nothing can withstand it. If it fails the theory will be so dead that nothing can resurrect it." The paragraph is pronounced doubly significant because of the whole bill was drawn under the direction of President Presi-dent Wilson and Secretary MeAdoo and introduced frankly as an administration measure by Chairman Sims. Democratic Leader Kitchin predicted predict-ed a historic congressional battlo before be-fore its adoption. Government ownership owner-ship advocates were jubilant at its inclusion. in-clusion. Non-Partisan Opinion. Representative Baer of North Dakota, Da-kota, non-partisan, said: "Unless government operation is so flat. a failure that no one hereafter will refer to it with respect, that last soc-tion soc-tion of the bill means government ownership. own-ership. Can any one imagine a congress con-gress which would affirmatively vote to give the roads back to owners who had proved their own inability to operate them ? "Until I saw this paragraph I had understood as a matter of course that the roads would revert to their owners at the close of the war. That paragraph , is the meat of the whole legislation. I i predict the national flag will never be nauled down from the system of Amer ! ican railroads. "This is the very paragraph which 1 such radicals as Senator La Follette ! planned to offer as an amendment. T would have hesitated to have complicated compli-cated such emergency legislation with this epochal proposal. And now here it is, in the very bill which the admin- istration ha:; its representative put before be-fore congress. ' ' Text of Bill. The text, of the administration's railroad rail-road bill follows: at to provide for the operation of t.riiu.t'p"rtation systems while under federal control, for the just compensation compen-sation of their owners and for others. Be it enacted by the senate and house of representatives, etc. .Section J The president, bavinjr !n I a time of war taken over the posses- j sion, use and control (railed herein j federal control) of certain systems of j tran;;pnrtatin ("called herein carriers) is herehy authorized to asree with and guarantee to any such carriers that during the period' of federal control con-trol it shall receive as its just compensation com-pensation and income at an annual i rate equivalent as nearly as may be to its average net railway operating income for the three years end ins June 1 11 7 trailed herein standard return); said net railway operating income for the purpose of this act shall, as to carriers making returns to the interstate commerce commission, commis-sion, be computed from such returns, excluding", however, debits a nd credits cred-its and credits arising from the accounts ac-counts '-ailed in the monthly returns leased road rents and miscellaneous rents: provided, however, t hat no federal taxes in excess of taxes assessed as-sessed durinq- the year ending June 30. 1917, shall be charged against" revenue in computing such standard returns. Any net ra ilroad operating income in excess of such standard returns shall be the property of the United States. The amount of such standard return so accruing during said period of three years shall be determined by the interstate commerce com-merce commission and the certificate of the commission as to the amount of said net railway operating" income shall, for the purpose of such agreement agree-ment and guaranty, be taken as final and conclusive. Depreciation Provision. During the period of such federal control adequate depreciation and maintenance of the properties of the carriers shall be included as a part of the operating expenses or provided pro-vided through a reserve fund, in accordance ac-cordance with such principles and ' rules as shall be determined by the president. Section 2 Tf no such agreement is made, the president may. nevertheless, neverthe-less, pay or cause to be paid to any carrier while under federal control, an amount not exceeding 90 per cent of such standard return, remitting such carrier to its legal rights in the court of claims for 'any balance claimed and any amount- thereafter found due above the amount paid shall bear Interest at the rate of 6 per cent per annum: and any excess amount paid hereunder shall be recoverable re-coverable bv the United States with interest at the rate of 6 per cent per annum. Auditors to Decide. Section 3 Any claim for just compensation com-pensation not adjusted as provided in section 1 shall be submitted to a board of three auditors appointed by the interstate commerce commission, members of which and of the official force thereof being eligible for service as such auditors, but without additional addi-tional compensation therefor. Said auditors shall give a full hearing to such carrier and to the United States and shall report to the president the amount due such carrier as just compensation: com-pensation: a sum not exceeding the amount so reached may be agreed upon by the president and such carrier. car-rier. Failing such an agreement, either the United States or such carrier car-rier may file a petition in the court of claims for the purpose of final ascertainment ascer-tainment of the amount of such just compensation, and in the proceedings in said court the report of said auditors shall be prima facie evidence of the facts therein stated. The just compensation com-pensation of any carrier under federal control not making returns to the I interstate commerce commission shall be determined in accordance with the provisions of this section. May Be Increased. 1 Section 4 The return of any such I carrier shall be increased by an 1 amount reckoned at a rate per cent I to be fixed by the president upon the I cost of any additions and improve-j improve-j ments made while under federal control, con-trol, with the approval of the president, presi-dent, to the property of any carrier I and paid for by such carrier from its I own capital and surplus, and by an I amount equal to the rate accruing to the United States upon any advances made to surh carrier for the cost of such additions and improvements as provided in section G hereof. Section 5 No carrier while under federal control shall, without prior approval of the president, declare or pay any dividend In excess of its regular regu-lar rate of dividends during the throe years ended June 30, 1P17; provided, however, that such carriers as nave paid no regular dividends or no dividends divi-dends during sucli period, may, with the prior approval of the president. pay dividends at such rate as the president may determine. $500,000,000 Wanted. Section 6 The sum of $500,000,000 is hereby appropriated out of the public treasury from any funds not other- 1 wise appropriated, which, together with any funds available from any excess earnings of said carriers, may be used by the president as a revolving: re-volving: fund for the purpose of paying- the expenses of federal control . and any deficit of any carrier below such standard or ascertained return, and to provide terminals, engines, rolling roll-ing stock and other necessary equipment, equip-ment, such as terminal improvement and equipment, to be used and accounted ac-counted for as the president may direct, di-rect, and to be disposed of as congress may hereafter by law provide. The president mav also, in connection connec-tion with the property of any carrier, make or order any carrier to make any additions and improvements necessary nec-essary or desirable for war purposes or in the public interest. He may, from such revolving fund, advance to such carrier all or any part of the expense of such additions and improvements im-provements so ordered and constructed construct-ed by such carrier or by the prpyi-dent. prpyi-dent. such advances to be charged against such carrier and to bear interest in-terest at such rate and to be payable on such terms as may be determined bv the president, to the end that the T'nited States may he fully reimbursed for any sums advanced. May Purchase Securities. Any loss claim to accrue to any carrier by reason of any such im- provemen'ts or additions ordered and constructed may be delermined by acreempnt betwppn the president and such carriers; failing such agreement, the amount of such loss shall be ascertained as-certained as provided Jn sec! ion 3 hereof. l-'rom aid revolving fund the president presi-dent may expend such an amount as he may deem necessary or desirable for the purchase, construction or utilization and operation of boats, harcos. tuRs and other transportation facilities of the inland and coastwise . waters and in the acquisition, operation opera-tion and use of such facilities, create or employ surh agencies and entr i into such contracts and agreements i as lie shall deem in the public in- terest. ! May Purchase Securities. Section 7 For the purpose of.pro-; of.pro-; v i . l i n i; f u n d - r eq v i s i t for maturing . obligations, for other lesal and proper ' expenditures or for reorganizing railroads rail-roads in receivership, a.rritrs may, ; d iring thp period of fpderai oontroi. if-sue sui'd bom's, notes, potiipmen t trust certihVa t es. s'or k and other forms of securities, s-'-iirfd or unsecured unse-cured by morl gage. n t be prsldnt may approve as conststftiT with tbe public interest. Tl.e president, may purchase for t'r.e t"n:ted States all or any part of such securities at prices not exceeding par and may sell such securities whenever in his judgment it is desirable, at prices not less than the cost thereof. Any sums available from the revolving fund provided in section G may be used for such purchases. pur-chases. Section S The president may execute exe-cute any of the powers herein and heretofore granted him with relation rela-tion to federal control through such agencies as he may determine and any reasonable, compensation for the performance per-formance of such in connection (herewith; (here-with; and may utilize the personnel and facilities of the Interstate commerce com-merce commission and call upon members of such commission or any . of its employees, or employees of any deparl ment of the government, for stich services as lie may deem expedient. ex-pedient. No such federal official or employee shall receive any additional compensation for such service. Workmen's Compensation. Section The president is hereby authorized, while carriers are under federal control, to direct that the federal workmen's compensation act of September, 1316, shall he extended so as to apply to any carrier employees em-ployees on such terms and conditions as wiU give due consideration to remedies under the state compensation compensa-tion laws or otherwise. Section 1 0 Nothing herein contained con-tained shall be construed a-s modifying modi-fying or restricting the powers heretofore here-tofore conferred upon the president to take possession and assume control con-trol of any or all systems of transportation; trans-portation; and the president, in addition ad-dition to the powers conferred bv litis ac( , shall have and is hereby given siK'h other and fu"ther powers pow-ers necessary and appropriate to give effct to the powers herein and heretofore here-tofore con f erred. Section 1 1 Carriers while under federal control shall, in eo far as is ' nt inconsistent therewith, or wilb the provision? of this a ct . or any othr act ;i pn!b ab!o to such federal control, or with any order of t h, president, bp huhjert to a'l laxvs and liabilities as common carriers: and suits may be brought by and against such rnrriers and judgments rendered eh now provided by law; provided, bowevpr. that except with the written writ-ten assent of the president no attachment at-tachment shall he levied by process or on execution on or asaln.vi any of t'K- property ufd by a.ny such carrier car-rier in the performance of its duties as a common carrier. Prosecution to Follow. Section 12 Every person nr crr-ror.'it crr-ror.'it :op, whether carrier or shipper, or an'- receiver, tructe, Ipsfpp, aeerit rM- rf.rcf)M a Miner for or rrnp!o r-.r carrier nr -!-,iprpr. or cthr-r per--iri, who sh;i 11 know inch- viola te ur fa il to ob"i-vc any of the provisions of t iiis a ct. or shall knowingly in fer-fpre fer-fpre with or impede the possesion, iie. operation or control of ar.y railroad rail-road property, railroad or ta nspo-tai'.on nspo-tai'.on j-v.-iem Idlherto or hTaf r r taken o-cr bv ibe president, or s'-all violate anv of the j rovi?!on of rt.-op; rt.-op; er or -eguia i . n rni d e ?n p- j r - j -anrp r,f t : h i act. or anv o j- a-r c-iv.-'.i.'!i sK h poi-.'irs'-inn. i;se o; r,rjf-;-R- t. -:-.. o,- -T)tr' . s '.! he rui'i-.- of p r :.'!-ri"aj;nr. sliall upon 'o;.vi--ton l" pi:::'?' ed l.i y 2 f:r.e cf not v re '"an ".(.-( or. if a persrn. !;,- ir.i-r ir.i-r ; -sonir-p:. fir not more two ears, or both. f-;-i h irln'-:.'--inr, t ra ns.i '"i op r-'ir.st : t m:;r.z a vio, t jon of. or a f.-.tl.jr'1 to o:-erve, any r.f t 1 p. prnv;.- ii r,s of t a t, or a "v orde r ent ered in p'3 :S'j;j p' T r ere to, s ! ,n 1 1 cor.s'.itute a separate n'eii.-. F'ir t '1 e taking or oon'versi on t o Y-.:s o'-vrt ue or tve emiiezz'c-rrer emiiezz'c-rrer of TT'Or;p' o proT'"tv de- j r:vej from or u.-erj hi ronr.-ct!on with the possession, use or operation of said railroads, or transportation systems, sys-tems, the criminal statutes of the United States, as well as the criminal statutes of the various states, where applicable, shall apply to all officers, agents and employees engaged in said railroad and transportation service, while tho same is under federal control, con-trol, tn the same extent as to persons per-sons employed in tho regular service of the United States. Prosecutions for violations of this act or any order entered hereunder, shall be in t he district courts of the United Stales under the direction of the attorney general In accordance with procedure of the collection and imposing of fines and penalties now existing in said courts. Section 1 :; The Federal control of transportation systems herein and heretofore provided for shall continue-for continue-for and during the period of the war a nd tint II congress shall thereafter order otherwise. |