The daily star-mirror. (Moscow, Idaho) 1911-1939, 1917-12-28
BIG PROBLEM
Of OPERATING
THE RAILROADS
GOVERNMENT MAY ASH PUBLIC
TO BUY SECURITIES LIKE
LIBERTY BONDS

LIDEhI1 DONDS
WASHINGTON-S Secretary McAdoo,
director general, has placed the ex-
listing war board of the railroad ex-
ecut1ves in temporary charge of the
operation of the railroads. julius
Kruttschnitt, the executive chairman
of the Southern Pacific, is the western
representative. Railroad officials and
Secretary McAdoo are comforting to-
day on a plan to compensate the rail-
roads on the basis of their three year
net income. The government is to re-
tain all over this for maintenance, new
projects and reasonable dividends to
stockholders.
Gives Financial Relief
The railroads regard the govern
ment intervention primarily as fin
ancial relief. Members of the war
board have asked to what extent they
can count on the federal government
to aid in obtaining funds for improve
ments. They will not go for a gov
ernment loan or congressional ap-
preparation, but Secretry McAdoo asks
the public to buy railroad securities
like Liberty Bonds, or if the govern
ment itself buys the securities, the
railroads will finance themselves
They predict that advancing expenses
will necessitate the government ma
king good the deficit on most of the
roads through a diversion of their
business to other roads, with a net
income guarantee. President Will
sons proclamation empowers Secre-
tary McAdoo, by general or special
order, to do anything he deems nee
essary to run the railroads as a war
machine solely for efficiency and vic
tory.
Many Officials Nervous
The only guarantee the railroads
have that Secretary McAdoo will not
supercede the present individual man.
agements with great government
bureau operating through branches
from headquarters here is the assur-
ance they are reported to have receiv- :
ed from President Wilson to the re-
iably reported to have told the rail-
roads that the war board and Secre-
.ary McAdoo would function princi-
)ally through them.
VIII Move With Care
Secretary McAdoo said that in the
midst of war he did not want to de-
noralize the greatest industrial plant
n the world. Railroads admitted to-
lin their inability to cope with the
resent crisis under the existing laws
nd with the existing financial diff
iculties. Therefore federal inter-
ention was decided upon
Cut Dividends at Pleasure
Secretary McAdoo has power to cut
ividends as guarantee that he mere
y serves for net incomes. The di-
ision of this income may be varied
o provide for more improvements
han in the past. He announced thaat
he first steps would be taken eau
ously to avoid interruption in traf-
C. He intends to study existing or
anizations so that every possible
)rce will be utilized in reconstruc-
on.
VIII Seek Better Laws
Legislation will be sought after the
ecess of congress defining the fiscal
elationship of the plan. To provide
'ansportation for over 100000 rail-
ay employees to Uncle Sans payroll
le creation of wage adjustment
oard or director is favored.
Confer with President Wilson
The presence at Secretary McAdoo's
difference of President Willard of the
altimore & Ohio, and Chairman Low
t of the Union Pacific, strengthened
e belief that these men will be give
/ strong posts in the McAdoo or
imitation. 1t is believed that Willard