Evening journal., 1917-12-28
Government Takes
over RAILROADS
lContInued From Page One.I

the single controlling head, assuming
all powers and all responsibility.
An assistant director general IN a
personal advisory capacity TO the direc-
tor general will be named. This man
will be q man OF broad railroad and
financial standing though not officially
connected with any railroad; to be
buffer" between railroad interests and
the director general. John SHELTON VIII
liams. former president OF the SeabOard
Air Line, and present controller Of the
currency, IS mentioned for this post.
Three chiefs on whose shoulders will
fall the actual operation will be named
These Will be a director Of operations,
a director OF traflc and a director Of
finance.
The director Of operations will be the
man told TO get cars rolling IN the
most efilcient, economic and practical
manner, regardless Of any interest ex-
cept those OF the public and the para
mount one Of winning the war. He
would enforce the vast pooling Of roll
| Ing stock. terminals and other equip
ment made possible by government ad-
ministration. In short all problems Of
actual physical operation would be UP
/ 10 this man. subject, Of course. to di-
! reetiOn Of Director General McAdoo. In
view Of his duties, this man, 10 was re-
garded as a certainty. will be some
! prominent, broad-visi0ned railroad
operator. Several, including Daniel VIII
lard, president Of the B. and O., Hale
| Holden, president Of the BURLINGTON and
! Fairfax Harrison, president Of the
Southern, are mentioned.
/ The director Of traflc. it is presumed
| will regulate priority and direct move
ment Of all freight. co-Ordnsting with
! the director Of operations The director
Of finance viii handle the fiscal adjust
ments between the road owners and
| the government. under provisions Of
I the legislation Congress viii pass at the
/ Presidents request In addition 10
working out the equitable compensa-
/ tion or rental the government will
pay the roads; 10 is presumed he will
also attend TO the payroll OF the mil
/ lion railroad workers who VIII have a
/ new boss In the government. Matters
OF Investment Of government moneys
In road Improvements and added roll
Ing stock; opd OF disposing Of any ex-
cess earning the government may make
also are expected 10 come under him.
Below these three sub-heads. hlghly
centralized working organizations will
gradually be evolved, utilizing present
railroad Organization as far as IS COM
patible with the plan Of dvorcine
private interest from the management.
This plan. given today as the prob
able and logica" arrangement, 70 was
emphasized may not be wholly adopted
at the ouset.
Director General McAdoo announced
first steps will be taken cautiously TO
avoid sudden DISBURSEMENT OF traflc
Existing organizations, too, must be
weighed that every positive force may
be utilized In the reconstruction.
Legislation 70 be asked Of Congress
Immediately after the recess, besides
defining the fiscal relationship of the
plan Will provide FOR transferring 10
Uncle Sans payroll the 100000 odd
railroad workers for creating wage
adjustment board or director and prob
ably for prevention Of strikes, Il was
stated today.
/ McAdoo's plan 10 compensate rail-
roads on basis OF the average net in
come Of the last three years, the Gov
ernment TO retain oil over this sum for
maintenance, new projects and reason
able dividends to stockholders will con-
stltute the crux OF the conference be-
tween railroad officials and McAdoo to-
day.
Congress also viii talk itself hoarse
on the governments decision to COM
pensate the railroads on a basis Of the
maximum earnings Of the past three
years instead OF the pre-war period.
The railroads regard the governments
Intervention primarily as financial re-
lief.
The war board at todays meeting
with McAdoO made pointed inquiries
regarding the extent to which they can
now count on his aid 10 obtaining need
ed funds TO finance Improvements. A
government loan is not wanted, they
stated. nor any appropriation from
Congress for equipment II McAdoo
will appeal 10 the public TO buy rail-
road securities as they buy Liberty
Bonds, or II the government will itself
huy the securities the railroads viii
finance themselves, the board stated.
The railroads predict that advancing
expenses will necessitate the govern
ment making sood a deficit on most
roads. Diversion OF freight, pooling OF
equipment and other war efficiency
measures will make some lines pros
persons and reduce The revenues OF
: others. The guarantee Of net income,
however. will protect all roads. In