Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-12-28

NEW YORK. Dec. s7.-Stocks scared
at the opening of the stock market to-
day, deaoting the satisfaction of the
financial community with the presidents
decision to take over the railroads.
The advances ranged from TO s
points in the railroad list, all the stand
ard shares being bid Up furiously. New
York Central advanced Z IL to IL; New
Haven. lis to 90: Erie. : SIS TO Is;
500 points - 81: Reading. : rs to
20 L.; Southern Pscifce. S Ia to 81:
Union Pacific. s Ia to liz; Southern
railway. l.: to "a L..
= ST. Paul jumped II SIS points to IS;
Atchison, IL to s. L.; Delaware and
Hudson. points 10 100: Canadian Pa
cfnc, points to 1s4; Norfolk and West
ern. as points to 1o4
With the country's railroads under
federal control tomorrow. the govern
menrs first of series of tremendous
problems therein is disposition of the
labor angle. k8
This. il is assumed. will be accom-
pIished Thursday during a conference
President Wilson is to hold with the
railroad. brotherhood chiefs
From one of the brotherhood leaders
who confers with President Wilson this
afternoon Il was learned officially today
that the railroad employees will back gov
eminent control loyalty.
We expect our members to do their
utmost for the president and the war"
he said. There isn't the least likeli-
hood OF trouble between the employees
and the government OF course. our
wage demands will be pressed TO final
adjustment The workers must be fixed
to meet the rising costs OF living. /
haven't doubt that this will be taken
care OF By the president"
: Delayed trains caused lew hours
postponement OF a preliminary meeting
OF The Brotherhood leaders before they
went to the White House. W. S. Carter,
head OF the firemen's brotherhood. was
the only labor chief in Washington early
today
At the same time Secretary McAdoo.
appointed director general OF the roads
opened conferences with rail executives
relative to the compensation the govern
ment is to pay the roads based on a
thrEe-year average beginning July 1,
1915. Should it be found impossible to
reach an agreement with the roads on
this basis a separate tribunal will have
TO be called in to settle the difficulty as
neither the president nor congress can
arbitrarily TX the compensation
VIII Go Before Congress
Securities 10 be issued while the gov
eminent is in control will be at in
tereSt rates not less than per cent
and the issues will be made under joint
authority Of the director general and
the interstate commerce commission.
President Wilson. when he outlines the
governments plans in his forthcoming
address 20 congress- will ask that the
ha tn hrr--
quantity OF new railroad securities. All
dividends over and abo-- an amount to
De agreed upon will 90 to the govern.
neut.
Congress will be asked also TO appro-
PIRATE a large fund-probably two hun
dred million doIlars-for the immediate
supply OF rolling stock to handle the
flood or .rsrrIc which has swa1nped the
roads.
The director general will have au-
thority to decide whether the govern
ment shall also assume operation AMI
control OF the express companies.
President Wilson will recommend to-
congress that the railroads he guaran-
teed the average net income OF the three
years ending June 80. 1917. but any rail-
road may abide by its constitutional
right and refuse TO accept this basis
OF compensation In that case. the ques-
ton will pass TO an arbitratins body,
the precise nature of which is TO be de-
termined by congress.
May Save Money
The equipment fund will also be used
10 paw any deficit of earnings this year
under the prewar average or the amount
agreed upon. but officials who have
given the situatio nclOse study believe
IL may oe unnecessary to expend any
great sum in this way. They believe
that the government, by eliminating
wasteful competition and unnecessary
expenses under a common control. can
save hundreds Of millions of dollars.
Some officials even estimate that the
saving will be a billion dollars year.
and that the government will he able
20 garner revenue from the government
operation plan i'm addition to insuring
railroad securities holders against
loss
Although most cases earned diVi- |
-deuds exceeding the guarantee win re- /
NeTt to the government. congress viii 1
be asked TO make provision for railroads
whose pre-war earnings were abnormal 4
ly low. by authorizing the payment Of /.
dividends in excess OF those amounts !
on approval of the interstate commerce /
commission.
Railroads will continue TO provide for .
their own issues OF securities, but viii
he compelled to obtain the approval OF 1
the director general before going 20 tho /!
interstate commerce commission Tor \
unaI sanction. The commission will pass !
on the size OF tho issue and the direc- 4
tor general will determine the interest /
rate which could not be less than /
Aper cent under the proposed plan
Z In his dual position of secretary or 4
4 nc treasury and director general OF |
Railroads. Mr.. McAdoo would be in the 1
est position to pass on questions Of I
ecurities' interest rates. It also would 4
- duty 10 determine when the gov
Ient should purchase new securi- /
Issued under his approval, and this /
kQuld prevent the rail securities |
rfering with future issues of |
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