The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1917-12-30
GIANT RAIL MERGER MEANS
MORE EFFICIENCY FOR WAR
McAdoo and Noted Executives of Transportation Work
Out Plan to Clear Congestion From Nation System;
Never Again + Private Ownership is Belief.

The men asked that the wage increases
be made effective January first, but In
q recent conference with President VIII
son, the men promised not TO strike
while the negotiations were pending. II
appeared likely tonight that the brother
hoods might not press their demands
for perhaps some time. in the belief
| that In the present unsettled railroad
situation, their request for wage raises
would meet "A better response at a
later time.
Creation of "A government corpora.
ton for handling. railroad securities and
for financing the purchase OF railway
equipment is the best plan, officials be.
lieve, for handling this end OF the finan.
cial situation. The government finan.
cial system, IL Is held, Is too cumber.
some.
Under the scheme proposed. the rail.
roads would submit to the corporation
all refunding issues for approval as
well as all new issues of securities. The
corporation then would buy them in
and hold them for sale to the public at
a convenient time.
In this way. the government could
keep railroad securities of the market
when 1t was Offering for sale Liberty
bonds and other government securities
Why Government Ownership
Inevitable.
The feeling among railway executives
that government assumption Of control
makes government ownership inevitable
Is based on two promises.
First, 1t is held that once the roads
ara co-ordinated and are operated as
one system IL will be impossible to go
back 20 the old competitive system. The
public, Il is declared. never would be
willing for such a gigantic combination
to operate as private corporation.
The second reason is that stock hold
ers. once guaranteed a fair return on
their investments in railroad stocks,
would not want to reurn to the uncer.
tainties of private operation.
The eastern railroads operating com.
mittee will be brought to Washington
from Pittsburgh. officials said. because
y will be in closer touch with the war
board, and because the center, of con-
gestion is shifting from the Pittsburgh
district to the seaboard. Its offices will
be established in the building occupied
ny the war board.
Another Reason.
Another reason for the apparently
cheerful acquiescence of railroad heads
TO the governments plan of operation is
the assurance given by Mr.. McAdoo
that roads which did not make fair
earnings in the pre-war period will be
provided with adequate compensation
from the government The foundation
for this arrangement will be laid i'm leg
islation now being framed and to be
introduced Immediately after President
Wilson addresses congress next week.
Secretary McAdoo spent today in his
office at the treasury building but ar
ranged to open headquarters next week
in the Interstate Commerce commission
building. Among the men with whom
he conferred today were Daniel VIII
lard, president of the Baltimore & Ohio
and chairman of the industries board
Interstate Commerce Commissioners
Anderson, Meyer and Wooley. Senator
Cummins. Representative Reybuin of
the House Interstate Commerce COM
mittee. and John Barton Payne. coun-
sci for the shipping board.
Mail and Passengers.
Although Mr.. McAdoo has not yet
taken up the subject of curtailment of
passenger schedules, this course is an
later Postoffice officials to-
day arranged to revise their nail sched-
ules accordingly.
III MS SldttiiithN oNloit Niit otHoNt
Interstate Commerce committee today, |
Chairman Hall took occasion to exoner-
ate Chairman Lovett of the priority
board of blame in the issuance of neces-
sary orders, placing responsibility on
the action of the boards of the war and
navy departments as well as with the |
board. which designates freight |
'or these departments is to be given
preference
Couldn't the president have inn
proved the situation last July by having !
.hese priority orders pass through one
nam" asked Senator Kellogg.
You can draw your own conclusions |
~ well as | cam" Chairman Hall re-
,lied. The head of the railroad COM |
mission in response to questions re-
yarding the probable expenditure that
would result from government control
If the railroads said he believed the
plan could be carried out without great
,ost. No money might be needed at
,nce. he said except for additional ter
ninal facilities at some points.
The hearing will be resumed next
Monday. whca Chairman Hall will con-
inue his statements.