The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1917-12-27
VITAL NECESSITY
IMPELS VIGOROUS
RAILPR0CEEDING
Unified System of Transportation
Operates Under Orders of
One Man.
McAD00 DESPOT OF TRAFFIC
Continues for Duration Of War
With Bond and Stock Own.
ers Guaranteed.
McADOO DESPOT OF TRAFFIC


Washington, Dec. 27.-Governme1t
possession and operation of the ma
TONS railroads for the war was pro-
claimed by President Wilson Wednes-
day to become effective at noon Fri
day, December %. William G. Nc
Adoo retaining his place in the cab.
met as secretary of the treasury, is
placed in charge as director general
of the railroads.
Every railroad engaged in general
transportation, with its appurtenances,
including steamship lines, is taken
over and all systems will be operated
as one under the director general.
In a statement accompanying his
proclamation, the president announced
that as soon as congress reassembles
he will recommend legislation guaran.
teeing pre-war earnings and mainten-
ance of railroad properties in good re.
pair. #T ,,+t.s5
ttss3 Government Backs Securities. gai
Government backing will be given
to new issues of railroad securities
that ready market may be found.
The presidents move, although fore
cast for weeks, came at this time as
great surprise to nearly everybody
in Washington, including railroad Of
ficials. 1t had been generally believed
he would await the reassembling of
congress- before taking any steps. He
acted through Secretary Of War
Baker under authority conferred in
the army appropriation act.
Direct management of the roads will
remain in the hands Of railroad offic-
ials and the railroads war board, COM
prised of five railroad heads, will con.
tinue to direct actual operation under
Secretary McAdoO's general supervis-
ion. -
Unification Of Systems.
The chief practical effect of govern
.ment operation will be to permit a
complete unification of all rail sys-
TENS, impossible under private opera
ton by reason OF statutes prohibiting
pooling of rail traffic and earnings.
The roads themselves had gone as
far as they dare d in this direction,
and it became known only today that
they had been warned by Attorney
General Gregory that violation of
anti-pooling laws could not be per
mitted. rf
This situation was fully realized by
President Wilson, who in his state
ment declared the railroads had gone
as far as they could and that already
some systems were endangering their
earnings in attempting unification.
Although the proclamation applies
to all electric lines engaged in gen.
eral transportation local interurban
systems are specifically exempted.
Guaranteed Earnings.
Congress will be asked to guarantee
earnings equivalent to the average net
operating income of each railroad in
the three-year period ending June 80,
1917. Railroad experts estimate that
this will cost the government next
year in the neighborhood of 100000
900 which can be raised in large part
by increased freights in the interstate
commerce commission grants the
roads APPLICATION for the Is per cent
rate increase now pending. Otherwise
it will be paid largely out of the gen.
eral government funds.
The interstate commerce commits
sion and other government agencies
which have to do with the railroads
will continue to perform their func-
tions as heretofore, except that they
will be subject to orders of the direc-
tor of railroads.
The president makes it clear that
his decision was not made by any
failure on the railrods to perform
their whole duty insofar as they could
while hampered as they were by legal
restrictions.
'The committee of railroad execu-
tives," said his statement, have done
the utmost that it was possible for
them to do, but there were difficulties
they neither could escape nor neutral
ize. In mere fairness to them the full