The Watertown news. [volume] (Watertown, Wis.) 1917-1919, 1917-12-28
M 'ADOO RULES
ALL ROADS TODAY
Order Pooling Every System Be-
ing Drawn by Director
General.
WORKERS WILL GET RAISE
High Salaries of Officials to Be Cut
Down Under New Government
Control $2oO,oOo,OoO to Pur-
chase Rolling Stock.

Washington, Dec. 28.-A continental
system of railroads Of the United
States, including every mile of track,
all equipment and every employee was
put into existence at noon today.
Secretary of the Treasury McAdoo,
named by President Wilson to be di-
rector general of the railroads, con-
ferred with the railroads war board.
The conference was to determine
questions of administration. The
railway executives will be told that
for the time being there will be no
changes in the official personnel Of
the big systems.
From his position of absolute au-
nation, Mr.. McAdoo will announce
that all red tape and statutes that
hinder will stand negatived for the
period of the war.
Full support of and cooperation
with the government have been as
sured by the executive heads of the
railroads.
First Order Drawn.
Order No. 1, to be issued shortly by
Director General of Railroads Nc
Adoo, will provide for the pooling Of
all traffic and facilities, the common
use of terminals, tracks and equip
ment, the hauling of freight by the
shortest route regardless OF billing Or
routing, and the retention OF all pres
ent officers and employees Of rail-
roads.
One effect of this order will be to
facilities which they do not now have
In big cities. The Baltimore & Ohio
probably will enter New York city at
the Pennsylvania station.
Heads of the four railroad brother
hoods conferred whit President Will
son for an hour and half, discussing
in detail the part the employees will
play under government operation.
A. B. Garretson of the conductors
said afterward that wage increases
were not mentioned.
Mr.. GarretsOn added that the broth
erhoods were behind the government
operation plan, and the president had
known it for two weeks.
Will Pay q Per Cent.
One of the first acts of the govern
ment in beginning operation of rail-
roads will be to reduce large salaries
now being paid to the railway execu-
tives and increase in some measure
the wages of the railway workers.
Securities to be issued while the
government 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 commits
sion.
President Wilson, when he outlines
the governments plans in his forth
coming address to congress, will ask
that the government be empowered to
buy any quantity of new railroad Sc
curities. All earnings over and above
an amount to be agreed upon will go
to the government.
Will Ask 200 Millions.
propriate large probably
$500, O,OO0,0O0-for the immediate sup
ply of rolling stock to handle the flood
of traffic which has swamped the
roads.
The director general will have au-
thority to decide whether the govern
ment shall also assume operation and
control of the express companies.
The presidents of many large lines
now receive salaries ranging from
$4,000 to $150,0OO a year, and one of
the first acts of the director general
probably will be to cut these sharply.
Ten thousand dollars a year is being
discussed as maximum, although
here is no tendency to underestimate
their worth to the government in the
war emergency. Some railroad men
predicted that the officers would ac-
cept these reductions willingly in view
Of the fact that they are virtually
drafted for war work.
The saving in salaries would be ap-
piled to raising the pay Of members of
the four railway brotherhoods, whose
officers conferred with President VIII
son, and also of other railway en-
ployees unorganized.
Although in most cases earned divi-
dends exceeding the guarantee will re-
vert to the government, congress will
be asked to make provision for abnor-
mally low, by authorizing the pay
ment of dividends in excess of those
amounts ON approval of the interstate
commerce commission.
In his dual position of secretary Of
the treasury and director general Of
railroads Mr.. McAdoo would be in the
best position to pass on questions Of
securities interest rates.