Evening star., 1917-12-08
j. S. SEEMS CERTAIN
TO OPERATE ROADS
President Said to Have Reach
ed Decision, But Problem Is
In Finding Administrator.
FUTURE POLICY UNKNOWN


Operation Of all the railroads In the
United States under n fedsral ra;lrosd
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| S wac pi"es1Sony ~s
eured.
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Ane 1fe'ioent 10 onoeFstooo 10 nave
reached this decision, and to be con.
sloerln8 no" the problem OF nndlng q
man to be the administrator. Selection
:.
the chief difficulties of federal admin.
lstratlon.
President Wilson was devot,nr all
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mo A''ee.on .ooaS " the 1aiHoao
problem, with the intent OF reaching q
conclusion soon about q policy which
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W." W "inooSeo oAAoS'
Railroad executives themselves are
understood to be convinced that a fed.
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e.a' soiiinisef~ ~.oi 10 " oe @ppo'n'oo.
sibtlity that the administrator viii h.
a railroad man.
may MOI BE ha11roao man.
Indications todav were that tho ad-
iliihislrator "ouio not pe d railroad
man. Advisers OF the President have
urged that a railroad man be not ap-
nointed on Tho ground +b.+ ~. r.i1-
road nroh,an, 1ow ;nvn1ves nnch
broader onestion. than those of raiI.
road oneration alone and that nuhiic
confidence would he accorded more gen
orally to capable executive not hith-
erto directly connected with the roads.
It was also recalled that the Presi-
dent picked civil engineer, Herbert
C. Hoover. to head the food admins
H. A. Garfield, to head the fuel admin
tstration. He Is understood to be sat
| isfled entirely with the way the prin-
ciple involved in these appointments
has worked out.
But the railroad problem, unlike the
| food and fuel problems, begins only
with the appointment of a railroad
administrator. With the appointment
of such an administrator, generally
conceded to be inevitable, the prin-
cipal speculation was about the further
policy of the government toward the
| railroads.
Expectation of Railroads.
In the case of food and fuel, the ad-
existing nriyate agencies. who con-
| time re onarate as before with noIi.
IN. ,,oa;sod - s,,nto,, nan.pn1 -
NJ eovernment suggestions Takine :
IL Tin Sron, this no,icy tbs raiIro.ds ss antic'
.Ip aloi. ~. .nis poiSs, sne ~ oaos @ an.ls
;atro.a .its he, apps nuaanr;n H. a. nunads
lstra,or ny empowering Inc Iaaroaus
war noa1o 10 oo al tnat sucn an ao-
| minlstrator, under tne present laws
could have done.
The railroads contend that in the
qualifying clause under the present
law" lie the difficulties in the way OF
| increased efficiency, and they desire
these restrictions removed and a trial
| test of what thew then could do under
their own administratiye hoard.
| Some confusion has been caused b,
the use Of the word pooling" in CON.
nection with the statement that the
eastern roads had efrected a poolins
pIan. This poolinp. It is exnlained. nov
is limited to a cooling of eouipment
which is legal hut a nooline of tram
! and a division. or pooling. Of profits
both are illegal.
| Remove restrictions on traffic poolins
| AM. the Revenues of the roads woulf
! be afYected. Earninrs Of some would hs
| Increased ana those of others wonIf
sinmn and anu onerations 4he % ths W1tas a,ta,
wonis he imnaired
| Roads TTnah1e IN Rorrow
But the major reason why the gov.
| ernment NAV take hand in tht
| financing of the roads lies in the fac
| that to operate ali the cars and loco.
motives on ali the trackare now avail.
able would not solve the problem O,
| increasing TRANSFORMATION. The load is
| fast hecominp TOO heavy for nrasant
Facilities. This entails exnansion Of
| tracks. terminals and rolling stock
But the roads cannot borrow money
Liberty loans have cut into their ordi.
nary channels of credit. Likewise the
| credit Of some has been imnaired nv
depreciation and war time factors.
| Two ways were Suggested bv which tbe
the roads in this respect Under federsi
eovernment advanced n t1,a reads os ~ tne 5
1easonahla ;ntarast Ga ~ tha e saSa aga1S 70 q. 49,
mifted to increasa their fac;,;t;aS q,
the government might buy outright tbt
engines. cars and iay tracks and rent
them to the roads.
! Either process. of course. wouId cu,
! into +ha