The sun., 1917-12-28
McAdoO Will Operate Vast
Mileage as Post Office. U.s.
ing Shortest Routes. :,
- i
TRAFFIC TO BE POOLED
Shippers Will Merely Send
Their Freight to the =
Nearest Depot.
PLAN PLEASES COUNTRY
President Expected to Address
Congress on Subject When
Houses RecOnvene.
PLAN PLEASES COUNTRY
Special Despatch 10 The SrS.

OF noon tomorrow the railroads OF tho
country. comprising one-third Of the
worlds total mileage. will pass under the
control OF the United States Government
thereafter to be operated by William G.
McAdoo as Director-General Of Railroads
in fact as we'll as In name. Every car
and locomotive on the railroads after this
change takes place will have as It wers
the letters L. s. A. written on it and be
regarded by the Government as inter-
changeable units on the different lines
OF this single system. For the Govern
ment's purposes it will be as ii individual
railroads like the Pennsylvania and the
New York Central had disappeared from
the railroad map and their identity been
merged in a single Government system.
The effect Of this momentous change
may not be appreciable to the public,
but IL is promised that within a short
time changes will be brought about likely
to affect the whole economic situation.
For one thing hereafter every railroad
freight station and terminal will bear
the same relation to the country's traffit
as the individual post office does to the
mail system. II will be for the shipper
to take his freight to the nearest station
and the Government will route II as it
sees ft. just as 1t does the mail package
deposited in the post office.
Country seems to Approve.
From the flood OF kilograms and CON-
gratulatory messages which poured into
the White HOUSE and the Office Of Sec
rotary McAdoo to-day it would seem as
~ the country as whole had approved
OF the act Of the President yesterday in
taking possession OF the railroads These
te!esrsms came from humble citfsens,
bankers and railroad presidents. Jacob
II. Schif. Daniel Willard. Newman Erb
and :. Davies Wartield the latter being
head OF the Railway Investors Associa-
tion made up of 10000 owners of rail-
road securities. were among those who
sent messages OF congratulation to the
President Mr.. McAdoo's desk at the
Treasury was heaped high with similar
messages from every part Of the country.
Congress will approve the President,
plan. including the proposed guarantee
based UPON the three year average
II IL expected now that the President
will address Congress the day after II
reconvenes and the legislation is ex-
pected TO go through without much
delay. Congress is still subservient TO
IN" Presidents wishes on matters of
war ioli.y, and while some mutterinRs
We're heard to-day from radicals that the
guarantee was too liberal and also that
the President had exceeded the authority
vested in him BY the law OF 1915 In
virtually fixing such guarantee in his
proclamation. there was no indication
tha
much more than talk.
president to he Left Alone.
Inc President is to be allowed. 1,
would seem. to handle the railroad situ-
alton as he sees fit, Congress with an
election facing il in the autumn being
R'ah enough t" escape In this way any
responsibility for the failure OF the
Government control plan. should such
eventually be the verdict Of the people.
NO definite plans have been formed as
Yet FOR the operation of the railroads
under the new system, Secretary Nc
Adoo is to tackle his new task in real
earnest &c morrow with tho objcc: n.st
OF drawing UP an operating plan. For
this purpose lie has invited the merbers
OF the Railroads War Board TO meet
him AT II O'CLOCK. lie will then ask the
BOARD FOR suggestions. particularly with
regard I" the elimination of obstacles
th"y nave found in speeding up freight
ana reviewing congestion which can be
relieved at once by Secretary McAdoo
exercising the unlimited power he win
have
Pin"s Tentativcl! Made.
The future of the Railroads War
Board was still among the uncertainties
Tonight. Secretary McAdoo declined ia
state to-day whether the board would
pc continued. In general way these
FEATURES stood out tonight as having
oeeh developed or clarified during the
day:
The guarantee il to he a maximum
and minimum equivalent to tn, rent
paid leased line, and any earninss
over this viii revert to the Govern
ment ana Will no. he for the railroads
TO dispose Of. The Government, IL II
sees MT. can put some Of these excess
earnings back in the road or divert
them to other purposes. such as maxi
ing mp the deficit of weaker roads TIL.
relation OF the railroads TO the Govern.
msnt will he virtually the same as
leased lines TO parent system.
Maturing obligations in 1918 amount
ing to $3.50 000 000 are to be taken nm
~ Nv 'o""' '"eH'"ciNes, Mr. McAQOS
anticipating no trouble with renewals
Row that the Government stands be-
hind the railroads, Rcfuudng plans
may he entered into with his approval.
Each Corporation Must Approve.
The President and Mr.. McAdoo re.
gard the guarantee as merely a sug-
gestion To Congress and which, IL Con.
gress authorizes. must then be offered
to the railroads TO accept or reject
Each corporation must meet and de-
eide whether it Is acceptable and ~
not acceptable must take the matter to
the courts. Such action In no wise
will affect the Governments seizure
and control OF the railroads in ques. .
tion.
Mr.. McAdoo as Dlreetor-G General