Daily capital journal. (Salem, Oregon) 1903-1919, 1917-12-27

presumably to lstraighten out thi
question iof demands for increase
wages.
Today also Secretary MeAdoo is t
confer with railroad executives rela
tive to the compensation which tn
government is to pay the roads, base,
on a three year average beginnin,
July, 1915. Should it be found impos
sible to reach an agreement with tn
roads on this basis, separate tribuna
will have to be called in to- settle thu
difficulty, as neither the presiden
nor congress can arbitrarily fix thu
compensation.
President Wilson s proclamation fol
! railroad control came suddenly. In
creasing confusion and congestion il
railroad operation brought about by
uncertainty Ayer the. roads future,
led him to act, following visits to the
White house of Chairman Willard OF
the war industries board and mem
bers of the interstate commerce com
mission.
Operation Begins New Year
Actual operation of the railroads be
gins January i, to AVOID confusion
and effect economies in accounting.
While all boat lines and other pos.
sessions of the railroads go under fed.
eral control simultaneously with the
roads themselves, interulEans and
street ear lines for the time are ex-
empt. Should necessity arise, however
the president will take these over
also.
Federal railroad fontrolb regarded
as the most tremendous war stroke
the president has yet made, will be
promptly followed by series of econ
omies. Systems, terminals, equipment
and pevenues will be pooled and
searching inquiry started immediate
ly designed to eliminate non-essential
passenger and freight traffic.
The president will devote the roads
to actual war service, equip
ment not needed LOT this being the
only service which win be utilized for
other purposes.
Much of this has been accomplished
already under the direction of the
railroads war board This board will
act as the agency through which Nc
Adoo will direct the roads, at least
for - time being. Fairfax Harrison
is chairman, and is expected to be-
come a permanent assistant of Nc
Adoo in the work.
Meets Brotherhoods Today
Today the president will take up
with the railroad brotherhoods ques-
tiohs cf labor affecting all employees
from the engineer to the trackwalk-
er. There are pending demands for
increased wages by employees and it
is understood some increase will be
granted Immediately.
At the same time, demands of the
roads for increased rates and oppo-
5ition Of shippers to such increases
are involved in the countless prob
ems confronting McAdoo in assum-
ng control. The president, through
McAdoo, can sweep away for the per
cd of the war all rulings by the in
5erstate commerce commission on
'ates, service, etc.
Frcm one of the brotherhood lead
,rs who confers with President Will
son this afternoon, the United Press
learned officially this morning that
he railroad employees will back gov
9rnment control generally.
"Wo expect our members to do
heir utmost for the president and the
likelihood of trouble between the en- |
'loyes and the government. OF course,
,ur wage demands will be pressed to
iinal adjustment. The workers must I
)e fixed to meet the rising cost Of liv- I
ng. l haven t doubt that this wiH
)e taken care of by the president, -
Trains Were Delayed
Delayed trains caused a few hours
of preliminary meet
ng of the brotherhood leaders before
hey went to the white house. w. S.
'arter, head Of the firemen' s broth
rhood, was the only labor chief in
Washington early today.
McAdoo will retain the services of
he interstate commerce commission in
II advisory capacity to assist in ad
usting existing difficulties.
The president acted to free the ar
cries of trade There is expected to
Q an immediate accelerating of men L
nd supplies to the seaboard, delayed
uring recent months by the inability Il
the railroads to cope with the prob ,
m because of lack of power. 5
By his action also the property of G
undreds of thousand of American in l
estors in railroad stocks amounting $
more than $20,000,000, comes un i
ar the protection eff the government
lring the war. 1t is believed likely II
A order will go out stopping trading n
these stocks temporarily until the t
urrv following the government s ac- r
on Is over. Approximately $4,000 i
lies of railroad tracks come under a
,eAdoo S supervision. t
Presidents Win Help i
From railroad presidents all over a
10 country today messages reached
Ie white house assuring the presi-
mt Of their full approval and coop t
alton in the governments tremend- S
Is move. u
President Wilson 8 proclamation au. RI
places all the great in