New-York tribune., 1917-12-28

NJ any agencies already developed
which can lend efficiency % tae ne"
order.
Although The Railroads War Board,
after being IN executive session al day,
Issued no statement commenting OF
government operation, railway eNecu,,
tives Indicated privately -ney were "elI
plcased with The promised situalon'
and optimism vas reflected ~ me IN
usual rise in railroad securities on
stock exchange. Hundreds o. tele-
grams Of congratulaton poured IN on
Mr, McAdoo. a.
NcAdoo viii retain the services o.
Judge Robert s. Lovett, Director OF
Priority for the War Industries board
with whom he conferred a. length -
dag, and that railroads WIZ be ~
structed 20 continue 70 receive orders
from that source. Another priority
question 20 be settled soon is that Or
co5rdinating the preferential shipment
instructions now issued by the rue!
ard Food administrations and Army
duartermasters through single go'-
ernmcnt transportation director 70
supervise only government shipments.
The Director Generals advisers have
recommended creation o. such an
agency. emphasizing that the govern
rnent railroad administration must JUS
t;fv itself Immediately by providing for
speedier transportation OF coal. Mr..
NcAdoo is known to nave given serious
thought 20 the coal situation and TO
have received suggestions that rep
resentative of the fuel administration
be included in his staff.
Lr. McAdoo does not expect 10 ask
an appropriation for administering
government operation, and his stan
probably will be composed largely OF
men already on the government or rail-
load payrolls. He will receive no al,
ditionsl salary for acting IN the dual
capacity of Director General OF Kali
roads and Secretary Of the Treasury.
II is expected he also will retain the
services of the railroads committee,
which has been administering the
equipment rool, with headquarters IN
Pittsburgh.
The pending demand Of the four
railway brotherhoods for 40 per cent
wage increase will be considered PROB
ably in a month or two along with the
more sweeping question of higher
wages for all employees, including those
d
advisers will suggest that board OF
managers De appointed 10 thresh out
general wage matters for his final con-
sderation.
If Congress follows President Will
sons recommendations concerning the
guarantee of the average pre-war
earnings, it will obligste the govern
ment 10 the extent of s9ls, ,424 ,sS5, the
I arfatn nf
for the three years ended last June
80. Figures compiled by the Bureau
of Railway Economics, an agency OF
the companies, show net operating in
come for the year ended June 30. 1915,
| as $685.. .93l ,S61; for 1916. S1.005, 1872
/ 7s0. and for 1917, si,054, ,l00,l10.
Congress might establish this basis
of compensation, virtually the lease
rate for the period of government
/ operation. but il could not compel any
| road to accept the terms, and a COM
! pany would have recourse to the courts
/ il il considered the rate too low. This
| course is not looked for from many
/ roads. however.
/ Under the BILL which officials have
drawn for presentation TO Congress.
/ it would be provided that earnings ex-
/ ceediag this basis would revert to
the government. for general expendi-
! ture or as a special fund for railroad
improvements. Dividend payments
would he subject to supervision and
approval OF the Interstate Commerce
, Commission.
No immediate appropriation will be
asked of Congress by Mr.. McAdoo. Not
+ only will he not ask for any fund for
new construction. but he will not be
obliged to ask for any appropriation
I for maintenance of his personal staff,
/ so far as his present plans are con-
cerned. The obvious use TO which TO put
any profits resulting from the govern
ment operation, should there be profits,
would be, he pointed out, to improve
the railroad facilities if found neces-
sary for that purpose, but otherwise
/ they will be covered into the Federal
treasury.
The Secretary proved rather reticent
on the matter of wage adjustments,
pointing out that the representatives OF
the Big Four brotherhoods were con-
ferring to-day with the President, and
saying he had so far held no communi-
cation with them. He has the opinion,
however, that the wage problem will be
in his hands.
Physical Valuations
May Be Discontinued
There is a strong opinion in Wash
.ngton that the immensely expensive