The Celina Democrat. (Celina, O. [Ohio]) 1895-1921, 1917-12-28

Direct Management Of the Lines VII
Be In Hands Of Railroad Officials
and Federal Railroads Board-cer
tain Steamship and Electric Llne'
Also to Be Taken oVer-change &c
Cost s1oo, 900, 900 Next Year.
Washington, Dec. H.-Presiden'
Wilson issued a proclamation an
nouncing government possession and
operation of the nations railroads fol
the duration of the war Action be
come9 effective tomorrow.
William G. McAdoo, retaining his
place in the cabinet as secretary Of
the treasury, Is placed in charge as
director general Of railroads.
Every railroad engaged in general
transportation. with its appurten'
ances, including steamship lines, Is
taken over and all systems will be
operated an one under the director
general.
In q statement accompanying his
proclamation the president announced
that as soon as congress reassembles
he will recommend legislation guaran'
teeing pre-war earnings and mainte-
nance of railroad properties In good
repair. Government backing will be
given to new issues Of railroad securi.
ties, that a ready market may be
found.
Direct management Of the roads
will remain in the hands Of railroad
officials, and the railroads war board,
comprised OF four railroad heads. will
continue to direct actual operation,
under Secretary McAdoo's general
supervision.
The chief practical effect of gov
ernment operation will be to permit
a complete unifcation OF all rail syS-
TENS, impossible under private opsr-
alton by reason Of states prohibiting
pooling Of rail traffic and earnings
The roads themselves had gone as
far rs they dared in this direction.
The situation was fully realized by
President Wilson, who, in his state
ment, declared the roads had gone as
far as they could and that already
some systems were endangering their
earnings in attempting unihcation.
Although the proclamation applies
to all electric lines engaged in gen.
eral transportation, local interrrban
systems are specifically exempted.
Congress will be asked to guarantee
earnings equivalent to the average
net operating income OF each railroad
in the three-year period ending June
10, 1917.
Railroad experts estimate that this
will cost the government next year
in the neighborhood Of 500, ,00t, 900,
which can be raised in large part by
increased freights If the interstate
commerce commission grants the
roads application for the 15 per cent
increase now pending. Otherwise it
will be paid largely out of general
government funds.
Wilson Issues Statement.
President Wilson's statement fol.
lows:
have exercised the powers over the
transportation system Of the country
which were granted me by the act Of con-
Kress OF August, 1916, because Il has be-
come imperatively necessary for me to do
80. This is . war Of resources ne less
than OF men, perhaps even more than II
men, and II In necessary for the complete
mobilization Of our resources that the
transportation systems Of the country
should be organized aud employed under
q single authority and a simplif1ed meth
Cd Of coordination which have not prov
ed possible under private MANAGEMENT
and control.
The committee Of railway executives
VINO have been cooperating with the gov
eminent in this all-important matter have
done the utmost that It was possible for
them to do: have done It with patriotic
zeal and with great ability; but there
were dimculties that they could neither
escape nor neutralize. Complete unity
Of administration in the present circum-
stances involves upon occasion and at
many pGInts a serious dislocation Of earn
lngs, and tho committee was, Of course,
without power Of authority to rearrangs
charges or effect proper compensatIons |
and adjustments Of earnings.
The public interest must be first served
and. in addition. the financial interests Of |
the government and the financial inter |
ests OF the railways must be brought un- |
der a common direction. The financial |
operations Of the railways need not then |
interfere with the borrowings Of the gov
and they themselves can be |
conducted at a greater advantage. In
Bured that their rights and interests will |
be as scrupulously looked after by the |
government as they could by the directors
Of the several railways systems
Immediately upon the reassembling Of |
congress / shall recommend that thess
DEFINITE guarantees be given: First. OF |
course. that the railway properties win |
be maintained during the period Of gov
ernment control in as Eood repair and as
equipment as when taken over
Oy the government; and, second, that this
roads shall receive a net operating in
come equal in each case to the svSrags
net income Of the three years preceding
tune so 1917; and am entirely confident |
hat the congress will he disposed in this
'ase. as In others, to see that justice Is
lone and full security assured to the
,wners and creditors Of the great systems
which the government must now use un-
Ter its own direction or else suffer seri-
)us embarrassment.
The secretary Of war and I are agreed
hat, all the circumstances being taken
nto consideration. the best results can
70 obtained under the immediate execu-
i've direction Of the Hon. william q. Nc
AcOo, whose practical experience pecu-
larly fts him for the service and whose
as secretary Of the treasury
vill enable him to coordinate. as no other
nan could, the many financial interests
which viii be involved and which might,
nless systematically directed. suffer very
entanRlements
-----e.---ae--