The Mena weekly star., 1917-12-27
INCLUDING STEAMSHIP LINES WILL BE MANAGED AS A
 SINGLE SYSTEM.
WILLIAM C. MADOO IN CHARGE AS ADMINISTRATOR, RE-
 MAINS IN CABINET.
ACTION IS A SURPRISE
Old Officials of Transportation Lines Will Retain Direct Management Congress tO Guarantee Pre-War
 Earnings and Back Securities.

Washington, Dec. 26.-Goyern- mcnl possession and operation of the nations railroads for the war was proclaimed by President Will son tonight to become effective at noon next Friday, December 28.
 William c. MeAdoo, retaining his place in the cabinet as secretary of the treasury, is placed in charge. as director general of railroads.
 Every railroad engaged in general transportation, with it's appurten- ances, including steamship lines, is taken over and all systems will be operated as one under the director general
 In a statement accompanying his proclamation the president an- nounced that as soon as Congress reassembles he will recommend legislation guaranteeing pre-war earnings and maintenance of rail- road properties in good repair.
 Government backing will be giv- on to new issues of railroad seeuri- ties that ready market may be found.
 The Presidents move, altho fore- cast for weeks, came at this time as q great surprise to nearly everybody in Washington, including railroad officials.
 Same Enlargement.
 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 Me- Adoos general supervision.
 The chief practical effect of gov ernment operation will be to permit complete unillcation of all rail systems, impossible under private operation by reasons of statutes prohibiting pooling of rail traffic and earnings The roads themselves had gone as far as they dared ill this direction and il became known today that they had been warned by Attorney General Gregory that violation of anti-pooling laws could not be permitted.
 Congress will be asked to guaran- tee earnings equivalent to the av- craze net operating income of each railroad in the three-year period ending June 30 1917. Railroad cx- perts estimate that this will cost the government next year in the neighborhood of $i00000000, which can be raised in large part by in creased freights if the Interstate Commerce Commission grants the roads application for the i5 per- cent rate increase now pending. Otherwise it will be paid largely out of the general governmental funds.
 l. (. C. to Continue.
 The Interstate Commerce Com mission and other governmental agencies which have to do with the railroads will continue to perform their functions as heretofore, ex- oept that they will be subject to the orders of the director of railroads.
 The president makes it clear that his decision was not made beeause of any failure on the part of the railroads to perform their whole duty insofar as they could while hampered as they were by legal re- strictions.
 The committee of railroad exee- utiyes," said his statement. ''haye done the utmost that it was possi- ble for them to do. but there are difficulties they neither could es- cape nor neutralize. In mere fair ness to them the fuli authority of the government must be substilut- ed
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