Norwich bulletin., 1917-12-27
GOVT CONTROL OF
 RAILROADS PROCLAIMED
{Continued from Page One.)

Follows the British System.
 The plan of control as outlined in the proclamation and statement leaves much unssid as to details, but the | general sc z me appears to follow close ly the British sy9-em. In England, 1 however, government freight is car | ried free and the guaranteed earnings require an enormous amouAt of mon | ey from .government funds, while in l the United States the government will pay for it's freight as in the past and will stand it's part of increased freight l tariffs if they are found to be neces- l sary.
 Aside from the presidents statement there was no comment in the capital tonight on the governments move Secretary McAdoo declined to be quoted and members Of the railroads war board said they would have no statement to make until tomorrow. Rate Question Will Not Be Affected.
 Rate questions. including the pend ing 15 per cent advance case before the Interstate Commer Commission will not be affected immediately by President Wilson's proclamation di- recting government operation for rail- roads, and the commission will con- tinue to exercise all its existing fuhc- tions.
 western. railroads' application for ls per cent. higher rates is now expect ed.
 Railroads will continue to apply to the commi ssion for increases or mod ifications Of rates and practices, unless the director general issues specific or ders otherwise, and in that case his au- thority will be supreme. The prin- cipal rate question now under consld' eration by the commission in addition to the Is per cent case are the express companies application for 10 per cent increase and various rami1catons Of the western inter-mountain cases.
 Doubt About Express Companies.
 Some doubt was felt tonight as to whether express companies are lncIud- ed in the presidents proclamation They are not mentioned speciffcatlly. but the president referred to every system of transportation and the ap- purtenances= thereto This was gen erally interpreted as including these companies whose business is so close ly interIocked with that of the rail- roads.
 State railroad and public utilities commissions will be left with full pow CTS to supervise intrastate rates ana transportation rules
 It is presumed that railroads will apply direct to. the Interstate Com merce Commission or to the state com missions as in the past without refer ring questions of rate increase to the director general, although the proce- dure will depend largely on the scheme of control to be worked out by MT. McAdoo.
 In the fifteen per cent cases the railroads presented figures showing marked declines in net earnings this year, and explained that even the in crease in earnings resulting rom fifteen per cent. increase proDably This led officials to suggest that the government railroad administration might look with favor on higher rates, since they would tend to e1uce the amount which government operation will cost the public under the plan of guaranteeing pre-war earnings
 The Presidents Statement. The presidents statement follows: 'I have exercised the powers over the transportation systems of the coun- try which were granted me by the act of congress of August 1916, because 1t has become imperatively necessary for
 me to do so. This is a war of re- sources no less than of men, perhaps even more than of men, and 1t is neces- sary for the complete mobilization Of our resources that the transportation systems of the country should be or ganiZed and employed under single authority and a simplif1ed method Of coordination which have not proved possible under private management aThe committee of railway execu- tives who have been cooperating with the government in this all-important
 
 was possible for them to do; have done it with patriotic zeal and with great ability; but there were differences that they could neither escape nor neutral ize. Complete unity of administration in the present circumstances involves upon occasion and at many points a serious dislocation of earnings. and the committee was. of course. without power or authority to rearrange charges or effect proper conpensations ad roads which were willingly and with admirable public spirit accepting the orders of the committee have already suffered from these circumstances and
 should not be required to suffer fur ther.
 Increase of Efficiency.
 Tn mere fairness to them the full authority of the government must be substituted. The government itself will thereby gain an immense increase of efficiency in the conduct of the war and of the innumerable activities upon which it's successful conduct depends. "The public interest must be first served and. in addition. the financial financial interests of the railways must be brought under a common direction. The financial operations of the rail- ways need not then interfere with the borrowings of the government, and they themselves can be conducted at a way securities may rest assured that their rights and interests will be as scrupulousIy looked after by the gov ernment as they could be by the di- rectors of the several railway systems. Immediately upon the reassembly of congress shall recommend that these definite guarantees be given: First, of course. that the railway properties will be maintained during the period of federal control in as good repair and as complete equipment as when taken over by the government, and, second that the roads shall receive net op- erating income equal in each case to the average net income of the three years preceding June 30. 1917, and I am entirely confident that the con gress will be disposed in this case, as in others, to see that justice is done and full security assured to the own CTS and cradifors of the great sYstemS