Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1917-12-28

sary to eXpenQ any great ooiAi ~ ~
way. They believe that the govern
ment by eliminating wasteful compe.
tition and unnecessary expenses unoes
common control, can save millions Oh
dollars.
SEE BILLION SAVING.
Some officials even estimate that
+he saving will be billion year ana
that the government will be able TO
garner revenue from the government
oneration plan, in addition to insurlng
railroad securities holders against
loss. ,..,;
Although in most cases earned dl'l-
deuds exceeding the guarantee VIII re-
vert to the government congress VIII
be asked to make provisions Tor ran"
roads whose pre-war earnings were ao"
normally low. by authorizing the pay
ment of dividends in excess OF those
amounts on approval Of the interstate
commerce commission.
PLAN OF FINANCING.
Railroads will continue to PROVIDE
for their own issues of securities Dut
will be compelled to obtain approval
az the director general before gong
ia the interstate commerce commls-
sion for final sanction. The commls-
sion will pass on the size Of the issue
and the director general will pass on
the rate of interest which couid not
be less than per cent under the pro-
posed plan.
In his dual position of secretary @.
the treasury and director general GU
railroads Mr.. McAdoo would be IN the
best position to pass on questions Oh
securities interest rates. 1t also
would be his duty to determine "Heh
the government should purchase new
securities issued under his approval
and this plan would prevent the rail-
securities from interfering with 1u'
ture issues Of Liberty Bonds "ltnouI
necessitating actua! government IL
nancing of the railroads.
LAWS NOT ANNULLED.
The legislation which will be rec
ommended to congress would specify
that roads would remain. subject 10
all existing laws and regulations OF
the interstate commerce commission.
The association of state railroad
commissioners will give full support
to the new plan so long as their rune.
lions are not reduced materially, but
they are expected to protest against
being deprived of adjusting minor
questions of rates and rules WITHIN
their territories.
Until Mr.. McAdoo outlines his plans
the status OF express companies I'M
der government operation OF railroads
will not be fully determined.
MAY TAKE EXPRESS LINES.
Rolling stock owned by the express
companies will pass automatically
CyJnarVjCjON
tomorrow when the presidents pro-
clamation goes into effect and even
tually it may be necessary for Mr..
McAdoo to take them over to protect
their own rights as well as to provide
the proper measure OF cooperation
with railroads and with each other.
The status of the railroads war
board also is dependent on the director !
generals plan Of organization. 1t mas
been the medium Of transmitting gov
eminent orders to all the railroads
but this function now will be assumed
by the director general
AXE FOR SALARIES. I "
The presidents of many large lines
now receive salaries ranging from
$50 900 to $150,o00 year and one OF |;
the first acts of the director general
probably will be to cut these sharply.
Some railroad men predicted that the
officers would accept these reductions ,
willingly in view of the fact that they |
are virtually drafted for war work.
The saving in salaries would be ap-
piled to raising the pay Of members |
Of the four railroad brotherhoods /
whose oficers conferred today with |
President Wilson and also other rail !
way employees unorganized. |
TO REDUCE sTAFFs.
The president was expected to ask !
the brotherhood heads to give the full
est measure of support to the govern
ment operations and to leave their |
pending demand for higher wages for
determination in the future, when the
director general untangles many OF
the complications now developing.
Under government control every |
effort will be made to interfere as lit
tie as possible with the personnel of /
the mpanies but it is considered in
evitable that some employees will be
cut of. This applies particularly to
the large stats maintained by many [
railroads for soliciting traffic. These
reductions probably will be more than
VA60S NY IuO CAplos VI AAAoA -
zen for operating.
MAY AFFECT DRAFT.
The effect of government operation
on drafting railroad employees for
army duty Is question TO be worked
out but It seems probable that under
the new draft regulations recently pu:
into effect by Provost Marshall Gen.
eral Crowder, large proportion OF
the employees will be considered toa
valuable for their present work to
be drafted for fighting.
One of the immediate effects of the
new plan will be the re-routing of
much freight now passing over con.
gested lines, particularly in the wes-
The railroad war board has sought TO
divert traffic to lines least over.
burdened but anti-pooling regulations
have hampered it.
BALL TOSSERS ASKED
TO JOIN GRENADIERS