Evening journal., 1917-12-27
conilnnad from rlrst Pase.

1915. Should it be found impossible 10
reach an agreement on this basis a sep
arate tribunal win have 10 be called 10
70 settle the difficulty as neither the
President nor Congress can arbitrarily
fix the compensation.
President Wilson's determination for
railroad control came suddenly. In
creasing confusion and congestion i'm
railroad operation hrough about by un-
certainty over the roads future led him
TO act last evening following visits at
the White House OF Chairman Willard
OF the War Industries Board and mem-
bers of the I. O. G.
Actual operations of the roads begin
January 4
While Doe, lines and other posses
sions OF the railroads 10 under Federal
control simultaneously themselves, In
lerurban aud street car lines are for
The time cxcmnt. Should necessity
arise. however, the President viii take
hese over also.
Federal railroad control. regarded as
The most tremendous war stroke The
President has >yet made, viii be
promptly followed by a series Of eco
1omics. Systems. terminals, equipment
and revenues viii be pooled and search
Ing Inquiry started Immediately de-
signed to eliminate non-ossential pas
senger and freight traffic.
The President viii devote the roads
primarily TO actual war service, equip
nent not NEEDED for this being the only
service which win be utilized for other
purposes.
Much Of this har been accomplished
already under the direction of the rail
roads war board. Mr.. Willard win
act as The agency through which Me-
Adoo win direct the roads at least for
he time being. Fairfax Harrison is
chairman. and is expected TO become
permanent assistant of McAdoos in
the work Today the President Will
take up with the railroad brotherhoods
questions Of labor, affecting oh em-
ployes from the engineer to the track
walker. There are pending demands
for increased wages by employees, ana
10 Is understood some increase VIII be
granted Immediately.
At the same time demands Of The
roads for increased rates and opposl-
tion Of shippers 90 such increases are
involved In the countless problems con-
fronting McAdoo ia assuming control.
The President, through McAdoo, can
sweep away for the period of the war
al rulings by the Interstate Commerce
Commission, on rates, service etc. Nc
Adoo viii retain the services Of the
!. Q. c. In an advisory capacity TO as
sist in adjusting existing dinlculties.
The President acted Ia free the arteries
Of trade. There IS expected TO be an
immediate accelerailng OF meR ard sup
plies 10 the seaboafd delayed durine
recent months by The Inability of the
railroads TO cope with the problem be
cause Of lack OF power.
By his action also the property of
hundreds Of thousanis OF American
investors In railroad stocks amounting
TO more than $4,000, 100000 comes un-
der the protection of the Government
during the war II is believed likely an
order win 90 out stopping trading in
the stocks temporarily until the furry
tot OWING the Governments action is
Dver
Approximately $4,000 miles Of rail-
road tracks come under McAdoO's
supervision.
From railroad presidents an over the
country today messages reached the
their fun approval and cooperation I'm
the Governments tremendous move.
Net operating income guaranteed by
President Wilson in taking over the
railroads IS the balance remaining
after operating expenses and taxes
have been paid from gross earnings.
In guaranteeing The average met
operating income" for the last three
wears. the Government Is securing The
Investors income at ils n CHEST point.
This is due 10 the tremendous Increase
m the volume Of railroad irafic within
that period.
According to Interstate Commerce
Commission figures the averoge annual
net operating income Of United states
roads for The last three years was
s9i72 i12
President Wilson's proclamation au-
tomaticslly placs an the great indus
tries of the nation upon an lmme-
dlaie war basis
Just as the great transportation lines
reach out into every industrial center
practically determining the success or
failure Of an commercial enterprise, so
win The government now determine
what industries may survive or perish
lhrougn ability or inability to move
their products.
Non-Var products Will Doe placed last
In The list of commodities TO be moved,
particularly I'm the congesled territories
of lhe east and south The Railroad
War Board. which VIII act in an adNis-
ory capacity with NcAdoo already has
listed about 500 commodities as nom
essentials including jewelry liquor
frippers of am kinds and luXuries of
every description.
no the same manner building materials
may be further restricted in shipment
10 private individuals 90 provide a
greater supply Of steel and raw ma
ierials for munitions.
Coal viii further be confined 90 es-
sentlal lines OF business and domestic
purpose by extension Of the govern
ments railroad control TO am coal traflc
Under NlcAdoo win now be conferred all
the various transportation boards and
commissions i'm the country as well as
ihe best railroad operating brains the
United states affords These bodies
are Interstate Commerce Commission,
Railroads War Board Railroads Operat-
ing Committee of Nice-presidents in
Pittsburgh. American Railway Associa-
fion and its car service committees
TRANSPORTATION committees OF the vari-
Gus governments departments, railroad
traffic chiefs Of Shipper associations
and large Industries and the aid Of the
different State railrcld commissions.
The Proclamation.
The Presidents proclamation follows