Pine Bluff daily graphic., 1917-12-28

there is no tendency to underestimate their worth to the government in he war emergency. Some railroad men predicted that the officers would ac- cept thsee 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 railroad brotherhoods, whose officers conferred today with President Wilson, and also of other railroad employees unorganized.
 The president was expected to ask the brotherhood heads to give the fullest measure of support to govern mcnt operation and to leave their pending demand for higher wages for determination in the future when the director general untangles many of the complications now developing. Un- der government control every effort will be made to interfere as little 2S possible with the personnel of the companies, but it is considered irl- evitable that some employees will be cut off. This applies particularly to the large staffs maintained by many railroads for soliciting traffic. These reductions probably will be more than offset by the employment of more men for operating. The effect of govern ment operation on drafting railroad employees for army duty is question to be worked out, but it seems prob- able that under the new draft regula- lions, recently put into effect by Provost Marshal General Crowder, a large proportion of the employees will be considered too valuable in their present work to be drafted for fight ing.
 RerOuting of Freight.
 One of the immediate effects of the new plan will be the rerouting of much freight now passing over con gested lines, particularly in the West. The Railroad War Board has sought to divert traffic to lines least Over- burdened, but anti-pooling regulations nave hampered it.
 Mr. McAdoo is expected to develop staff of assistants soon, but prob ably will use the existing agencies of the Interstate Commerce Commission to a large extent.
 The name of John Skelton Will Hams, now comptroller of the cur rency, was being mentioned today as chief executive director under Mir. Nc Adoo. He formerly was railroad financier.
 Control Begins Friday.
 Control of the nations railroads. to bring about uniform operation for the war will be assumed bN the govern ment at noon tomorrow, with Secre- tary McAdoo still retaining his cab!- ret post in charge as director general of railroads.
 This decision, the governments solution for the difficulties of the pres ent transportation situation. was an- nounced last night in a proclamation by Presiednt Wilson, effective at noon Friday December 28, and taking over every railroad engaged in general transportation in continental NUnite.l States, with it's lappurtenances. includ- ing steamship lines. All lines will be operated as single system under Director McAdoo.
 In a statement issued with the for maj proclamation. President Wilson declared he would ask Congress as soon as it reassembles, for legislation guaranteeing:
 First, that the railroad properties will be maintained during the period of federal control in as good repair and as complete equipment as when taken by the government: second. that the roads shall receive a net operat ing income equal in each case to the average net income of the three years preceding June 30, 1917.
 Government backing also will be given new issues of railroad securities so that market may be readily found Railroad officials will retain direct management of the roads. and the Railroad War Board, composed of five
 railroad heads, will continue actua operation under Director McAdoo's supervision. Street Railways Excluded. Although electric lines engaged ir general transportation are included 1T the proclamation, street railways ane | interurban lines are specifically eX. l cluded. with the reservation that sim /, liar action in their case may be taker i later if deemed necessary.
 The Interstate Commerce COmmis sion and other government and state agencies which have to do with rail. l roads will continue to perform theil ] function under the new plan, except that they will be subject to order o1 the railroad director.
 Railroads still will apply to the commission for changes in rates and practices.
 Early decision in the application o1 , Eastern and Western roads for 15 per cent advance in freight rates pend. ing before the commission now is ex- pected. The commission is consider ing application of the express com panies for 10 per cent increase. and as the proclamation failed to mention express companies specifically some doubt was felt as to whether they were included in the order. The proclama- tion said, "every system of transporta' ton and appurtenances thereof" how ever. and this was generally inter- preted as including the express com panies.
 Although the plan of control is not