Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-12-28
WORLDS BIGGEST RAILROAD
NOW OPERATED BY M'ADOO

gradually be evolved, utilizing present
railroad organization as far az is com.
patible with the plan Of divorcing private
Interest from the management.
This plan. given as the probable
and logical" arrangement. Il was en-
phi isized. may not be wholly adopted at
the outset
UTILIZE EXISTING FORCES
Director General McAdoo ..dnounccd
first steps will he taken cautiously to
avoid sudden disadjustment OF trafIlc.
Existing organizations. too. must be
weighed that every positive force may
be utilized In reconstruction.
Legislation TO be asked OF Congress
Immediately after the receSs, besides
defining the fiscal relationship OF the
plan, will provide for transferring To
| Uncle Sans pay roll the 100000 odd
Z railroad workers, for creating n wage
/ adjustmant board or director and prob
ably for prevention of strikes, 1t was
stated.
I McAdoos plan to compensate railroads
on a basis of the average net income OF
/ the las. three years, the Government "a
retain all over this sum for maintenance
new projects and reasonable dividends "a
stockholders, will constitute the crux OF
| the conference between railroad officials
| and McAdoo.
! The railroads regard the Government's
| Intervention primarily as financial re-
lief. The war board. at today's meeting
| with McAdoo, made pointed inquiries re-
garding the extent to which they can
now count on his aid In obtaining needed
funds to finance improvements. \ Gov
| ernment loan Is not wanted. they stated
nor any Appropriation from Congress
! for equipment. n McAdoo will appeal
J t. g. t.l
as they buy Liberty Bonds or II the
Government will itself buy the secu-
rifles. the railroads will finance them.
selves. the board stated
The railroads predict that advancing
expenses will necessitate the Government
making good deficit on mCst of the
roads. Diversion of freight pooling OF
equipment and other war efficiency
measures will make some lines prosper
Gus and reduce revenues of others. The
guarantee Of net income. however, will
/ protect all roads In England the Gov
ernment takes the surplus OF the pros
/ porous lines and uses It to make up the
deficits on lines stripped of commercial
/ freight for moving troops and munitions
/ free
| McAdoo has power to order dividends
| cut. AS the guarantee merely covers net
I income. division of this income may be
varied to provide more for improve
ments than in past years. just as stock
holders have enjoyed different dividends
/ in the past
/ BY general or special orders. the
/ Presidents proclamation provides. Nc
! AdoC may do almost anything he deems
necessary to run the railroads as Il war
machine solely for efficiency and vic
tory. The only guarantee the railroads
have that he will not supersede present
| individual arrangements with n great
/ Government bureau occupying several
buildings here and with branches every
where iss assurance they are reported
TO have received from the President 10
/ the contrary.
In giving this assurance the President
! Is reported to have said And. gentle
men. | believe I can control my deputy
which brought general laugh Of good
feeling.
President Wilson II reliably reported
10 have told the railroads war board
that McAdoo will function principally
= through them temporarily. In the midst
of war the President said he did not
desire to dcmCralize the greatest indus
trial plant In the world The executives
admitted TO him their inability TO cope
with the present crisis under existing
laws and with existing difficulties III
financing Therefore Government inter-
ycntion was decided on.