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Show Government Controls Roads Until 2! Months After War. WASHINGTON. March 21. President Presi-dent Wilson today signed the bill bringing tho railroads under government govern-ment operation and control until twenty-one months after the end of the war. President Wilson's signature to -the bill for government operation of railroads rail-roads until twenty-one months after the war completes the plan for the greatest undertaking in government control of p'rlvately owned public utilities util-ities the war has brought to America. Early in August, 1916, the war cloud was growing ominous, so an act was passed empowering tho president, through the secrotary of war, to take control of and utilize all systems ,of transportation in a national emergency. emer-gency. President Wilson employed this "authority on December 28, 1917, taking possession of the lines and appointing ap-pointing Secretary of the Treasury McAdoo, director general of railroads. Engaged in a war requiring every bit of national effort to insure success, the president believed it was imperative impera-tive that the government direct all operations so that adequate means might bo had to expedite troop movements, move-ments, movo war supplies, and enro for tho genorally abnormal strain on the transportation system. The flow of khaki-clad men had to proceed to the ports of embarkation without interruption; shells, cartridges and rifles had to be moved from munitions mu-nitions centers; foodstuffs had to be transferred from the granaries of the west, and ample provision had to be made for the output of the mines. In addition to military needs, the country had experienced during the winter of 1917 the greatest breakdown and congestion con-gestion of the transportation system over known. At a stroke of the president's pen the roads came under federal administration. admin-istration. Property rights were not purchased the government merely exercised its authority to operate the lines and provision was made for safo-guarding tho proprietary interests inter-ests of investors. At the request of the president, congress con-gress than set about to enact a law to carry on the step taken as an emergency emer-gency under the law of 1916. In substantial accord with President Wilson's recommendation, the law provided that the .compensation estimated esti-mated at $9-15.000,000 annually, shall be predicated on average net earnings for the three-year period ending June 30, 1917. Tho amountsJwill be ascertained ascer-tained by the Interstate Commerce commission and certified to the president, presi-dent, who will negotiate with the roads for their acceptance. Ordinary taxes, such, as national or 6tate, shall be paid out of operating revenues, but war taxes must be paid by the companies out of their own tunds, or charged against the standard return. In that way, the roads will bear their proportional propor-tional share of the war burden. So that the properties may be returned' to their owners in condition as good as when taken over, provision was made for their maintenance and for protection against unusual deterioration. In the absence of a complete federal valuation of railroads, the exact rate of returns to be made by the government govern-ment cannot be stated accurately, but it is estimated that tho companies will obtain an amount representing nearly five and a third per cent. In event that the president finds that an equitable return cannot be computed com-puted for some roads on the three-year three-year pre-war basis because of abnormal abnor-mal operating conditions during that period, he is authorized to fix an amount as ho shall believe reasonable. In case a road refuses to accept the amount of compensation as estimated by the Interstate Commerce commission, commis-sion, a board of referees shall be appointed ap-pointed to ascertain a fair return, and if this method fails the roads have recourse re-course to the federal court of claims. These provisions of the act safeguard the constitutional rights of investors to have their compensation determined determin-ed by due process of law. One section of the act provides the president may advance the rate of earnings for any road increasing Us M resources in order to handle better 9 the war-time volume of traffic. I Dividonds of Companies. M The companies are authorized to M continuo the regular payment of divi- JJ dends, but extra dividends shall not bo 1 voted without the approval of the a government. m A revolving fund of 500,000,000 was I provided. Tho president may order roads to extend their lines, erect or 9 expand terminals and make such other -I improvements as wartime conditions fl make imperative. If necessary, money .1 from the emergency fund may be ap- M propriated to meet these expenses, 1 with provision that the government 91 shall be reimbursed. The president is m authorized also to purchase for the m government, nt prices not exceeding flj par, all maturing securities which 91 were issued by the roads. M Estimates of maturities for 191S aro M $182,696,538; 1919, $1S8,215.052; 1920, 9 $186,520,253; 1921, $440,905,52S. 91 Status of Carriers. 9 It is specifically stipulated in the 9j law that the carriers shall remain, as 9 in their former status, subject to all 91 laws and liabilities arising under stat- 91 utes or the common law. 9 How long to retain government con- 9j trol after the war, and whether to vest w rate-fixing powers in the president or m in the Interstate Commerce commis- 91 sion were quostions that for a time 91 caused disagreements between the 9 house and senate. The proposal to es- 91 tablish indefinite government control 9 of the national railroad system was 9j voted down in both houses of con- M gress. 91 |