The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-12-27

o new issues Of railroad securities, that
The presidents move. although fore.
casted for weeks came at this time as
great surprise to nearly everybody
in Washington, including railroad Of
ficials. 1t was generally believed he
would await the rcassembling of con-
gress before taking any step. He acted
through Secretary OF War Baker.
under authority conferred In the army
appropriation act.
Direct management Of the roads will
remain in the hands OF railroad Off
Gals and the railroads war board,
comprised of five railroad heads will
continue to direct actual operation
under Secretary McAdoo's general
supervision. The chief practical ef-
feet of government operation will be
to permit n complete unification OF all
| rail systems impossible under private
operation by reason of statutes pro-
hibiting pooling or rail traffic and
earnings. The roads themselves had
gone as far as they dared in this d.
| rection and 1t became known only to-
| day that they had been warned by
Attorney General Gregory that a viola
ton OF anti pooling laws could not be
permitted.
! Railroads Reach Limit.
| This stpation was fully realized by
President Wilson. who in his statement
declared the railroads had gone a.
far as they could and that already
some systems were endangerinE their
earnings in attempting unification
Although the proclamation applies to
all electric lines engaged in general
transportation, local unterurban sys-
TENS are specifically exempted
| Congress- VIII be asked to guarantee
earnings equivalent to the average net
| operating income of each railroad In
the three year period ending June 30.
1917. Railroad experts estimate that this
will cost the government next year in
the neighborhood of 800, 900, 900 which
can be raised in large part by in
, creased freights IL the Interstate COM
mcrce commission grants the roads
application for the Is per cent rate
increase now pending. otherwise It
will be paid largely out of the general
government funds.
The Interstate commerce commission
and other government agencies which
have to do with the railroads will
continue to perform their functions as
heretofore except that they will be
, subject to orders of the director Of
railroads.
No Fault With Companies.
The president makes 1t clear that
his decision was not made because OF
| foil ,,,. th.,, ,.t a
to perform their whole duty insofar az
they could. while hampered as they
We're by legal restrictions.
The committee of railroad execu-
tives," said his statement, 'have done
the utmost that it was possible for
them to do, but there were difficulties
they could not escape nor neutralize.
In mere fairness to them the full a,l-
thority of the government must BIO
substituted
The plan of control as outlined In
the proclamation and statement leaves
much unsaid as to details, but the
general scheme appears to follow
closely the British system. In Eng
land. however, government freight Is
carried free and the guaranteed earn
|
money from government funds, while
in the United States, the government
will pay for it's freight as In the past
and will stand it's part of increased
freight traffic il they are found to be
necessary. t"..
Aside from the presidents statement
| there was no comment in the capital
tonight on the governments move.
. Secretary McAdoo declined to be
| quoted and members of the railroads
war board said they would have nc
statement to make until tomorrow.
The presidents statement follows:
Wilson's Statement.
Il have exercised the powers owe
the transportation systems Of tn
country which were granted me by tn
act of congress of August, 1916, becaus
it has become imperatively necessar
for me to do so. This Is war OF RI
! sources no less than Of men, perhap
y even more than of men, and it is nee
. essary for the complete mobilizatio
: of our resources that the transporta
ton systems of the country should b
Q organized and employed under Il sin
gle authority and a simplifed methcl
$ of coordination which have not PROVED
Hal ,,ty,