Bisbee daily review., 1917-12-27
(By Review Leased Wire)

WASHINGTON, Dec. 2o-Government possession and
operation of the nations railroads for the proclaimed
Friday, December 2S William c. McAdoo retaining his
place in the cabinet secretary of the treasury placed
charge director general of railroads.
Every railroad engaged in general transportation with
appurtenance including steamship lines taken and
all systems will be operated under the director general
In statement accompanying his proclamation the pres
dent announced that congress reassembled he
would recommend legislation guaranteeing proar earnings
and maintenance of railroad properties in good repair
Government backing will be given issues of rail
road securities that ready market may be found.
Move Forecast
The presidents although forecast for weeks came
this time great surprise nearly everybody Wash
ngton including railroad officials 1t had been generally be
heved he would await the reassenbns of congress before
taking any step He acted through Secretary of War
Baker under authority conferred in the army appropriation
act
Direct management of the roads will remain the hands
or railroad officials and the railroads board composed of
five railroad heads, will continue direct actual operation
under Secretary McAdoos general supervision
Unfication Sought
The chief practical effect of government operation will
be to permit complete unitlcaion OF all ra systems,
possible under private operation because of prohibit
ing pooling of rail traffic and earnings The roads them
selves had gone far they dared in this direction and
became known only today that they had been warned BY
Attorney General Gregory that violation of antpoohng
laws could not be permitted
This situation was fully realized BY President Wilson,
who his statement declared the roads had gone far as
their earnings in attempting unifica6on.
Although the proclamation applies all electric lines
engaged in general transportation local inerurban systems
are specifically exempted
Congress Appealed To
Congress will be asked guarantee earnings equivalent
to the net operating income of each railroad in the
threeyear period ending June 3d. 1917 Railroad experts
estimate that this will the government year in the
neighborhood of S00000000 which be raised large
part by increased freghts the interstate commits
sion grants the roads application for the IS per
increase pending Otherwise will be paid largely out
of the general government funds
The interstate commission and other govern
ment agencies which have do with the railroads viii
tnue perform their functions heretofore except that
they will be subject orders of the director of railroads
The president makes clear that his decision
made because of failure the part of the railroads
perform their whole duty insofar they could while ham,
pered as they were by legal restrictions.
The plan of control outlined in the proclamation and
statement leaves much unsaid details but the general
scheme appears follow closely the British system In Eng
land however freight carried free and the
guaranteed earnings require of money
from funds while in the United States the gov
will pay for its freight the past and will stand
its part of increased freight tariffs if they found be
necessary.
Aside from the presidents statement there
ment in the capital tonight the governments Sec
etay McAdoo declined be quoted and members of the
railroads board said they would have
make until tomorrow.
The presidents follows: the complete mOOu