davidaulloa/AmericanStories huggingface dataset:
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27
PRESIDENTS PROCLAMATION
IN GOVERNMENT CONTROLO
IT. S. RAILROAD PROPERTY

BY the President of the United
States of America, A Proclamation;
Whereas, the Congress of the
United States, in the exercise of the
constitutional authority vested in
them, by joint resolution of the SEN
ate and House of representatives,
bearing date April 6, 1917, resolved:
That the state of war between
the United States and the Imperial
German Government which has thus
been thrust upon the United States
is hereby formally declared; and
that the President be, and he is
hereby, authorized and directed to
employ the entire naval and military
forces of the United States and the
resources of the Government to car
ry on war against the Imperial Ger
man Government; and to bring the
conflict to a successful termination,
all of the resources of the country
are hereby pledged by the Congress
of the United States
And by joint resolution bearing
date of December Z, 1917, resolved:
. That a state of war is hereby
declared to exist between the United
States of America and the Imperial
and Royal Austro- o-Hungarian Gov
ernment; and that the President be,
and he is hereby authorized and di-
rected to employ the entire naval
and military forces of the United
States and the resources of the gov
ernment to carry on war against the
Imperial and Royal Austro- Hungar-
ian Government; and to bring the
conflict to a successful termination,
all the resources of the country are
hereby pledged by the Congress of
the United States
''Anl NUharaaG iC nFnUiHpH hV
Section l of the act approved August
29, 1916, entitled 'an Act making ap-
for the support of the
army for the fiscal year ending June
80, 1917, and for other purposes as
follows:
The President, in time of war, is
through the Secretary
of War, to take possession and as
sumo control of any system or sys-
TENS of transportation, or any part
thereof, and to utilize the same, to
the exclusion as far as may be nee
essary of all traffic thereon. for the
transfer or transportation of troops,
war material equipment, or for such
other purposes connected with the
as may be needful or de-
sira ble.'
"'And whereas, it has now be-
come necessary in the national de-
fense to take possession and assume
control of certain systems of trans
portation and to utilize the same,
to the exclusion as far as may be
necessary of other than war traffic
thereon, for the transportation of
troops, war materials and equip
ment therefor, and for other need
full and desirable purposes connect
ed with the prosecution of the war.
Now, therefore, l, Woodrow Will
son, President of the United States,
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27
WILSON GIVES REASONS
FOR DRASTIC ACTION IN
TAKING OVER RAILROADS

President Wilson's reasons for
taking over the countrys transpor-
ton systems are as follows:
Il have exercised the powers over
the transportation systems of the
country which were granted me by
Act of Congress of August %, 1916.
because it had become imperativeIy
necessary for me to do so. This is
a war of resources no less than OF
men, perhaps even more than of men,
and it is necessary for the complete
mobilization of our resources that the
transportation system of the country
should be organized and employed
under a single authority and a SIM
plified method of coordination, which
have not proved possible under pri-
vate management and control.
THE committee of railway execu-
tives who have been cooperating
with the Government in this all-im-
portant matters have done the utmost
that it was possible for them to do,
have done 1t with patriotic zeal and
with great ability; but there were
neither escape nor neutrnIize. Com
rlete unity of administration in the
present circumstances involved upon
occasion and at many points a seri-
Gus dislocation of earnings, and the
committee was. of course, without
power or authority to rearrange
charges or effect proper compensa-
tions and adjustments of earnings.
Several roads which were will
ingly and with admirable public
spirit accepting the orders of the
committee have already suffered from
these circumstances and should not
be required to suffer further. In
mere fairness to them the full au-
thority of the Government must be
substituted.
"The Government itself thereby
will gain an immense increase in
efficiency on the conduct of the war
and the innumerable activities upon
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27

under and by virtue of the powers
vested in me by the foregoing reso.
luton and statute, and by virtue oil
all other powers thereto me enabl-
ing, do hereby, through Newton d
Baker, Secretary of War, take pos
session and assume control at IL
O'Clock noon on the twenty-eig
day of December, 1917, of each and
every system of transportation and
the appurtances thereof located
wholly or in part within the bound
aries of the continental United States
and consisting of railroads, and
owned or controlled systems of coast
wise and inland transportation, en-
gagged in general transportation,
whether operated by steam or by
electric power, including also term
inals, terminal companies and term
inal associations, sleeping and parlor
cars, private cars and private car
lines, elevators, warehouses, tele-
graph and. telephone lines and all
other equipment and appurtenances
commonly used upon or operated as
a part of such rail or combined rail
and water systems of transportation;
to the end that such system of
transportation be utilized for the
transfer and transportation of troops
war material and equipment, to the
exclusion as far as may be necessary
of all other traffic. thereon: and that
so far as such exclusive use be not
necessary or desirable, such systems
of transportation be operated and
utilized in the performance of such
other services as the national inter
est may require and of the usual and
ordinary business and duties of COM
mon carriers.
ut is hereby directed that the
possession, control, operation and
utilization of such transportation
systems hereby by me undertaken
shall be exercised by and through
William G.. McAdoo, who is hereby
appointed and designated director
general of railroads. Said director
may perform the duties imposed
upon him. so long and to such eX-
tent as he shall determine, through
the boards of directors and en-
ployes of said system of transporta-
ton. Until and except so far as
said director shall from time to time
by general or special orders other
wise provide, the boards of direc-
tors, receivers, officers and employees
of the various transportation Sys-
tens shall continue the operation
thereof in the usual and ordinary
course of the business of common
carriers, in the names of their re-
spectiVe companies.
Until and except so far as said
directors shall from time to time
otherwise by general or special or
ders determine, such systems of
transportation shall remain subject
to all existing statutes and orders of
the Interstate Commerce Commits
sion, and to all statutes and orders
of regulating commissions of the
various states in which said systems
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27

or any part thereof may be situated.
But any orders, general or special,
| hereafter made by said director
shall have paramount authority and
be obeyed as such.
Nothing herein shall be consti-
tuted as now affecting the posses
sion, operation and control of street
electric passenger railways, includ-
ing railways commonly called inter
urbans. whether such railways be
or be not owned or controlled by
such railroad companies or systems.
But subsequent order and procla-
nation, If and when it shall be
! found necessary or desirable, pos
session, control or operation may be
taken of all or any part of such
street railway systems, including
| subways and tunnels, and by subse-
quent order and proclamation pos
session, control and operation in
whole or in part may also be relin-
quished to the owners thereof of
any part of the railroad systems or
rail and water systems, possession
and control of which are hereby as
sumed.
The director shall as soon as
may be possible after having as
sumed such possession and control
enter upon negotiations with the
several companies looking to agree
ments for just and reasonable COM
pensation for the possession, use
and control of their respective prop
critics on the basis of an annual
guaranteed compensation, above ac-
cruing depreciation and the main
tenance of their properties, equiv
alent as nearly as may be to the
average net operating income there
of for the three-year perior ending
June so, 1917, the results of such
negotiations to be reported to me
for such action as may be appropri-
ate and lawful.
Regular dividends hitherto de-
clared and maturing interest upon
bonds, debentures and other obliga-
tions may be paid in due course,
and such regular dividends and in
terest may continue to be paid un-
til and unless the said director shall
from time to time otherwise by gen.
eral or special orders determine,
and, subject to the approval of the
director. the various carriers may
agree upon and arrange for the re-
newal and extension of maturing
obligations.
Except with the prior written as
sent of said director, no attachment
by means of process or on execution
shall be levied on or against any
of the property used by any of said
transportation systems in the con-
duct of their business as common
carrier, but suits may be brought
by and against said carriers and
judgments rendered as hitherto, un-
til and except so far as said direc-
tors may. by general or special or
dcrs. otherwise determine.
From and after IL o'clock on
I'll oil
Der. 1917, all transportation systems
included in this order and procla-
nation shall conclusively be deemed
within the possession and control
of said director without further act
or notice. But for the purpose of
accounting said possession and con-
troll shall date from IL o'clock mid
night on December 81, 1917.
In witness whereof. I have here
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27
$=I Dpes POneroy G. Sewur
g. The Years Last Friday Sale Brings Many Extraordinary Values
Mems Gloves

$3.50 grey suede silk and un-
lined gloves. Special Friday,
only .'.............. 81 .OS
Dives, Pomeroy & Stewart,
Mems Store.
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27

I which its successful conduct depends.
The public interest must be first
served and, in addition, the financial
interests of the Government and the
financial interests of the railroads
must be brought under common
direction. The financial operations
of the railways need not then inter-
fere with the borrowings of the Gov
'erhment' and they themselves can be
conducted at greater advantage.
investors In railway securities
may rest assured TINT their rights
and interests will be ns scrupuIousIy
looked after by the Government as
they could be by the directors of the
several railway systems. Immedi-
ately upon the reassembling of Con-
gress | shall recommend that these
definite guarantees be given:
"First' of course, that the railroad
properties will be maintained during
the period of Federal control In ns
eood repair md ns complete equip
inent as when taken over by the Gov
ernment, and. second, that the roads
shall receive n net operating income
equal In each case to the average net
operating income of the three years
preceding June 80, 1917, and l am en-
tlrely confident that the Congress
will be disposed in this case as i'm
others to see that justice is done and
full security assured to the owners
and creditors of the great systems
which the Government must now use
under it's own direction or else suffer
serious embarrassment.
THE Secretary of War and I are
agreed that, all the circumstances
being taken into consideration, the
best results can be obtained under
the immediate executive direction of
the Hon. william G.. McdOO, whose
practical experience peculiarly fits
bin for the service and whose au-
thOrity Ms Secretary of the Treasury
will enable him to coordinate as no
other man could the many financial
interests which will be involved md
which might, unless systematically
directed. suffer very embarrassing en-
tanRlements.
THE Government of the United
States is the only great government
now engaged in the war which has
not already assumed control of this
sort. 1t was thought to be the spirit
of American institutions to attempt
to do everything that was necessary
through private management, and If
zeal and ability and patriotic motive
could have accomplished the neces-
sary unification of administration 1t
would certainly have been accom-
plished; but no zeal or ability could
overcome inSupernble obstacles, and I
have deemed it my duty to recognize
TINT fact In laI candOr now that It
is demonstrated and to use without
reserve the great authority repOsed
In me.
"a great national necessity dictat-
ed the action and l was therefore not
at liberty to abstain from it.
WOODROW WILSON,"
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27
DIVIDENDS ASSURED
BY WILSON'S ACTION
[Continued from First Page.1

and 1 was therefore not at liberty to
abstain from it,"
The President was required to act
through Secretary of War Baker, as
the steps taken are because of mill
tary necessity, Congress having pro-
Vided that government action was
possible only in time OF war.
Secretary McAdoo became CONVEX
SAINT with transportation financing as
the builder of the Hudson river
tubes, and 1t is realized that the new
tasks will revolve largely around the
financial problems of the railroad.
He is expected to call to his side a
board of railroad executives, very
likely the members of the Railroad
War Board.
Reaches Recision Christmas Eve
Decision to take over the roads
was definitely reached by the Presi-
dent on Christmas eve, when he call
ed Secretary Baker, Daniel Willard
and other officials to the White
House. Secretary McAdoo was a
guest there yesterday, and the heads
of the railroad brotherhoods were
there to-day to have explained to
them the status of operatives under
the governments plans.
The President seeks to make it
clear to the hundreds of thousands of
holders of railroad stocks and securi-
Ties that the government will safe
guard their rights and interests "as
scrupulously as could the directors
of the several railway systems"
Private operation of street railway
and interrurban companies is not
disturbed at least for the present,
by the Presidents action and the
actual control of the government
over railroads for purposes of ac-
counting will be dated from Decem-
Der 81, in order to have the fiscal
year agree with the calendar year.
Secretary McAdoo's orders as di-
rector general of railroads will take
precedence over all orders and regu-
lations of the Interstate Commerce
commission and State Railroad Com
missions.
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27


good. We are ready to do every
thing in our power to cooperate
with the government. For some
time we have been doing our best
to help out and we are ready to do
more if in our power.
What will come after the gov
ernment takes charge will be an
nounced from the higher officials.
i do not look for anything but sue
cess when the new plans are in
operation. orders will be obeyed
promptly. Just what it means to the
Pennsylvania Railroad will be ex-
planned later" An Associated Press
dispatch from Philadelphia says:
c.. Stuart Patterson, director of
the Pennsylvania Railroad and a
leading tinancier, approved the TAX
ing over of the operation of rail-
roads by the government, saying in
an interview to-day: THE President
has acted wisely He patriotically
has done that which he deems best
for the entire country"
L. Dewitt Cuyler, another director
OF the Pennsylvania Railroad, said
no change in organization would oc-
cur and that the railroads do not ex-
pect to incur any loss as a result of
the transaction. THE railroads have
for some time realized the prospect
OF the government taking over the
lines. All will give the government
the fullest cooperation. The ad-
vantage to be gained by the change
is the surmounting of all legal OBJ
stacles, the suspension if necessary,
of all arrangements the roads may
have with each other and the oper-
alton of all the roads as one sys-
tenn"
Another dispatch says:
What 1t Means
With the taking over of the rail-
roads every employe now in their
service will become q government
employe; every piece of operating
equipment will become the govern
ments equipment and all the ter
minals in this city will become the
governments property and subjected
to the same strict surveillance that
surrounds all government buildings
and plants
Approximately $4,000 miles of
railway trackage; 7475 locomotives
of all types with tractive power of
272,6O2,S30 pounds; 70S5 passenger
cars with seating capacity for 319,-
24O persons and 277,296 freight cars
of 1852, OPS tons capacity, will be
turned over to the government by
the Pennsylvania Railroad alone.
This is the Pennsylvania's main
equipment, the remaining incidental
items that also will be transferred
aggregating several times the value
of property that will be turned over
by many smaller lines"
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27
TO BOOST TAXES AND
LET ASH CONTRACT
[Continued from First Page.1

ones existing before the last reduct
tlon enough money will be raised I'd
release funds which can be used
Ior the ash collection work.
mayor keister opened the session
iast nlght by explaining in part the
problem facing Council in providing
for the needs of the city for 1918
and said that he and the other conf
mlssloners would be glad for anJ
suggestions from the Chamber oI
Commerce or Municipal League.
-, Andrew S. Patterson, president oI
the Chamber of Commerce, told
council that the Chamber only inI
tended to poll the sentiments of it'll
entire membership of $50 about thu
proposed increase in city taxes 4
meet additional expenses incurred bl
increasing the police force. The in
crease is required he said in ordc1
10 give adequate protection.
Crime Decreasing
>, Mayor keister in reply said he be-
neVed Council would provide foH
Some soIhe aodltional patrolmen in tn
Suuset. lie then said that crime wa
~ leasing IN the city, due chief
20 tne decrease in the sale and us
OF hquor, and also attributed part O
the decrease in lawlessness to tn
war which is a factor because
causes Industrial booms with in
creased wages and plenty of work.
AIter the question of the need q
additional patrolmen was discusse
mayor keister called attention to tn
ASH situation. Commissioners eros
IN snort explanation said tina
Counc1l never had decided to give u
Ien.ina Petit,anehtly all plans for ash col
lectlons. He explained that when
ptLiVdIe contract is let again regula
quire both the householders and IN
contractor to meet certain require
ments, and providing a penalty
case or violation of the rules.
d. Horace Mcfarland, secretary r
the municipal League, Representa-
that organization at the Council ses
sion. He told how the cost of cit
mafntainance in Harrisburg was 81
per capita year, while PittsbureI
Ihe next lowest city, is paying 81
per capita each year. He called a
tehlon to the larger amount of paI
Gu streets In Harrisburg in compar
son with other cities, mentioned til
parks and the pure water sunni
ana then criticised the residents
the city who demand up-to-date Sc
wee but are unwilling to paw for
lie pointed to the protests against IN
creasing tax rates as an example.
Urges Collection
David u. Tracy. ex-president
the Chamber of Commerce, was al
other speaker who urged Council
raise enough revenue to provide I'd
ash collections, telling of the hard
ship 1t will work on the poorer cIas
es II they are compelled to pay
have ashes removed, '
Failure of residents to co-opera
was condemned and the comnissio,
ers said provision would be made
compel householders to do the
share to make private collections
success.
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27
Percales and Prints

39c Jap crepe in plain and
fancy stripes. Special Friday
only, yard 10c
zoe percale; SO inches wide:
neat styles. Snecial Friday only,
yaFu minimum. .15c
15c fancy prints for comfort
coverings. Special Friday only.
yard 1Oc
zoe woven Galatea, plain and
stripes. Special Friday only.
yaru ''''''.''. lie
Dives, Pomeroy & Stewart.
Basement.
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27
GOVERNMENT WILL
FURNISH EQUIPMENT
IContinued from First Page. I

and control of the express compan-
les.
President Wilson will recommend
to Congress that the railroads be
guaranteed the average net income
OF the three years ending June 80,
1917, but any railroad may abide by
its constitutional right and refuse to
accept this basis of compensation.
In that case the question will pass to
an arbitrating body, the precise ma
ture of which is to be determined by
Congress.
Would Cut Big Salaries
The presidents of many large lines
now receive salaries ranging from
$4,000 to $150,000 a year and one
of the first acts of the director gen.
eral probably will be to cut these
sharply. Ten thousand dollars. a
year is being discussed as a maxi
mum.
The saving in salaries would be
applied to raising the pay of mem
bers of the four railroad brother
hoods, whose officers conferred to-
day with President Wilson and also
of other railway employees unorgan-
lied
Under government control every
effort will be made to interfere as
little as possible with the personnel
inevitable that some employees will
be cut off.
The effect of government opera
ton on drafting railroad employees
for Army duty is a question to be
worked out, but it seems probable
Il large proportion of the employees
will be considered too valuable in
their present work to be drafted for
fighting.
One of the immediate effects of
the new plan will be the re-routing
of much freight now passing over
congested lines, particularly in the
East.
New, York. Dec. 27.-Almost
without exception leading bankers
and executives of railroads hav-
ipG their Headquarters here to-
day expressed their approval of the
action of President Wilson in taxi
ing over the country's railroad lines.
Most of them agreed that the gov
ernments program as whole met
their expectations.
In the financial district it was as
serted the Presidents statement re-
garding guarantee of compensation
to the railroads will have the ef-
feet of reassuring holders of railway
securities. 1t was generally agreed
that in view of the financial phase or
the problem Secretary McAdoo's re-
tention of the Treasury portfolio was
desirable.
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27
IL British Ships Sunk
in Week; Is Drop Of S

London, Dec. 81. - The losses to
British shipping show a material de-
crease for the past week. Accord
ing to the admiralty report tonight
eleven British merchantmen of 1900
tons or over were sunk during this
period by mine or submarine, as well
as one merchantman under that ton
mage and one fishing vessel.
FOR the week ended December 10,
seventeen British merchantmen were
sunk. fourteen of them of more than
1900 tons. In the previous week the
.psss .S were twenty-one, fourteen of
them of more than 1900 tons Eor
several weeks prior to week before
last there was slight change in the
sea piracy figures.
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27

unto set my hand and caused the
seal of the United States to be af-
fixed.
Done by the President, through
Newton ID. Baker, Secretary of War,
in the District of Columbia, this
twenty sixth day of December, in
the year of our Lord one thousand
nine hundred and seventeen and of
the independence of the United
States the one hundred and forty
second.
WOODROW WILSON.
NEWTON d. BAKER.
Secretary of War.
"By the President:
ROBERT LANSING,
Secretary of State"
Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-27
LOCAL OFFICIALS TO
GIVE LOYAL SUPPORT

Continued from First Page [