The Dickinson press., 1917-12-29
RAILROADS ARE NOW
UNDER GOVERNMENT
ORDER -.0NE SYSTEM

DSGAAAAA6 Nv ASSAA AANSSy VI Illlo
week the railroads of the country will
be under the direction Of the Govern
ment which will operate them through
Secretary McAdoo, who will be known
as director general of railroads. This
order includes all steamships operat-
ing as appurtenances to any railroads.
The presidents move, although fore
cast for weeks, came at this time as a
great surprise to nearly everybody in
Washington, including railroad Off
Gals. It had been generally believed he
would await the reassembling Of
congress before taking any step. He
acted through Secretary of War
Baker under authority of the army
appropriation act.
Direct management of the roads
will remain in the hands of railroad
officials 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 effect Of Govern
ment operation will be to permit a
complete unifcation of all rail sys-
TENS, impossible under private opera
ton by reason of statutes prohibiting
pooling of rail traffic and earnings.
The roads themselves had gone as far
as they dared in this direction, and it
became known only recently that they
|had been warned by Attorney General
Gregory that a violation Of anti-pool-
ing laws could not be permitted.
This situation was fully realized by
President Wilson, who, in his state
ment, declared the railroads had gone
as far as they could and that already
some systems were endangering their
earnings in attempting u%nification.
Congress will be asked to guaran-
tee earnings equivalent to the average
net operating income of each railroad
in the three-year period ending June
80, 1917. Railroad experts estimate
that this will cost the Government
next year in the neighborhood Of
$1OO, 600, 900, which can be raised in
large part by increased freights if
the interstate commerce commission
grants the roads application for the
Is per cent rate increase pend
ing. Otherwise it will be paid largely
out of the general Government fund.
The interstate commerce commits
sion 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.
The president makes it clear that
his decision was not made because Of
any failure on the part of the rail
roads to perform their whole duty in
solar as they could while hampered as
they were by legal restrictions.
"The committee Of railroad execu-
tives," said the statement, g" * X
have done the utmost that it was pos
siblc for them to do, but there were
difficulties they neither could escape
nor neutralize. Il y * In mere fair
ness to them the full authority Of the
Government must be substituted"
The railroad situation has presented
one of the greatest problems that
have arisen in the prosecution Of the
war. Government control, although
not Offering an entire solution will.
many officials believe, go far toward
relieving many transportation ills.
Wars demand on railroad facilities
were foreseen early by railroad Off
Gals and five days after war was de-
clared the heads of the principal sys-
TENS met in Washington and formed
a committee of five rail chiefs to di-
rect the roads as nearly as possible
as one continuous system.
The board has coordinated railroad
operation that the roads are said to
be carrying rs per cent more traffic
than they ever moved before. AS war
preparations increased, traffic became
Constantly heavier and a month ago
the war board named a general oper-
ating committee for eastern roads, and
announced it would pool all trackage
and facilities, including cars and loco.
motives.
Meanwhile traffic had grown to
such proportions that the roads could
not handle it, and in the east, many
terminals were congested with freight.
The war board has declared that the
only way to meet the situation, either
under government or private opera
ton, is to deny transportation to non
essential products.
One of the new policies will be the
elimination Of duplication and result
ant waste in operation. Mr. McAdoo
is known to believe that hundreds OF
millions of dollars can be saved the
railroads and the American public by
pooling traffic and facilities, and that
ultimately the greatest benefit will &C.
crue to the railroads themselves.