Evening journal., 1917-12-29
MOVE TRAFFIC. IS
ORDER BY NJ 'AD0O
Quick Action to End lam OF
Freight; Enormous Econ
omieS Planned
POOLING LAWS
ARE SIIELVED


Move traillc by the most convenient
and expeditions routes"
With government operation Of rail-
roads becoming an actuality at noon
yesterday. the new drector-general NOV
cd promptly and vigorously 10 relieve
The Jam on the railways caused partly
by the legal restrictions the railways
have been operating under. These were
The telegraphic instructions sent TO the
presidents and directors Of all railroad
companies, now embraced in the govern
ment system:
Having assumed the duties imposed
upon me by and in pursuance Of the
proclamation Of the President dated De-
cember 26 1917, you will until other
wise ordered continue the operation Of
your road in conformity with said
proclamation You are requested to
make every possible effort to increase
efficiency and to move traffic by the
most convenient and. expeditions route.
Il confidently count on your hearty
cooperation. II is only through united
effort, uEselfsh service and effective
work that this war can be won and
Americas future be secured"
The effect Of this . der Of Mr.. Nc
Adoo's was 20 consign 10 the scrap heop
one OF the most important laws against
traffic pooling This law permitted the
shipper to route his own freight Last
night the railroad traffic men through
out the country are routing frelght as
they see ft IN accordance with the di-
rector's orders regardless Of the instruc-
tions Of shippers.
The onlc ais are empowered and are
expected 10 select the nest possible
route for freight to move not only over
their own lines. but over all other lines.
This was the FIRST effect OF the new
regime which Is 20 bring about in tine
many startling changes in the operating
81 the railrood systems.
That Il will take some little time COM
pletely TO unity he railroad lines Of
the country was again emphasized by
Mr. MoAdOo. Only the FIRST start has
been made on the colossal operating
problem But again the outstanding
feature Of the days railway develop
ments was the fact that the railway
lines actually are TO be merged into
one system and that both in its financial
snd operating phases the problem Is to
be dealt with on this basis The merger
Of railway lines may be effected slowly
10 avoid confusion but It will occur
nevertheless.
While the big problem Of unlcation
Is being worked out Director-General
McAdoo intends TO address himself to
the more immediate problem Of re-
lleving quickly II possible the congested
centres. ~ he has asked the Railroad
War Board which met with him today
for the first time 10 consider this prob
a ..afr r.a "a
slble any suggestion Il may have for
The common use Of terminals particu-
larly at New York and ChicagO, and
also for the common use Of tracks and
Ears
The War Board. at Mr. McAdoos in
Vitation, rs 20 be continued for the
present at cast as an operating body
n consists Of the following iive railroad
Executives. each a leader in the business
Of transportation:
Fairfax Harrison, president OF the
Southern Railway. chairman.
Julius kruttlchmitt. chairman OF the
board Of the Southern Pacific.
Samuel Rea, president Of the Pennsyl-
vania.
Hale Holden, president Of the Burling-
ton
Howard Elliott. OF the New Haven
Chairman Harrison said the board Was
purely voluntary organization. cost
Ing the roads 100000 a year To main
lain
Asked what would be the practical ac-
complishment Of the pooling Of railroad
traflc, Mr. Harrison replied:
"Traillc pooling Is relic OF the dark
ages Of railroad operation AMI ! io not
know whether 10 can be successfully
accomplished now All the railroads
have more trafllc now, than they can
POSSIBLY haul They believe hey are
operating the roads as efficiently o. can
be done under Government or any other
sort Of control
The board viii draw up a report as TO
how IN its judgement unincation can be
brought about and submitted 10 the Di-
rcctor-General Mr.. McAdoo. however,
Is depending on some Of his close ad-
visers in working out a general plan for
dealing with The railroads This plan
was discussed at a conference be held
Thursday night with members NJ the
Interstate Commerce Commission, and
yesterday Commissioners McChord and
Wooley were closeted for some time
with Comptroller John SHELTON Williams
going over further details.
All private financing Of new equip
ment and other similar loans 10 the
railroads is 10 b, stopped at once BY
pirector-General AlcAdoo according "a
the plan which Mr. McAdoo and his ad
visers now have in mind.
Under this plan. il was learned yes.
terday. any funds needed for equip
ment o. bette~ment will be raised di.
rectly through government flotation
Saving Of underwriting profits that
have been going generally 10 banklns
houses is to be part of the genera
economy plan. It was iated Any new
necessary financing win not be don
fh-ourh or by The individual units o
the new government system. but will b
done directly by the Director General
Any permanent bette~ments Of prop
crty or Individual units viii be charge'
20 these units AGAINST the time whei
the railroad are turned back TO thei
owners. Equipment. repairs, genera
will not. however be charged agains
individual units
Supplies will not be BOUGHT for an
one road or unit All viii be bOugh
from general fund. and mex
equipment will be placed where it
needed regardless Of the source Of tn
funds.
The general financing plan, like TIA
for operation, contemplaies one grea
national system, with no demarcaiions
Supplies, cars and equipment are Z
be bought for an the roads in lumI
They will not be distributed to units
but will be disposed IN The general sy: